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OC (Chase) offered Settlement - Want to take it, should I negotiate PFD?


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My account from Chase charged off 9/07. I can afford to settle, but am worried about the repercussions. SOL in NY is 6 yrs - and I also want to take care of my debt.

My 2 questions -- does this situation seem like what I should do? Also, when people talk about PFD does this also refer to OC's? I have found PFD info mostly referring to CAs. What would an OC delete? The entire TL??? The lates, the CO? Is "Settled" the best I can do?

Ok, that's more than 2 questions. Please bear with me and offer your opinion/personal experience -- any help appreciated.

I spoke to Chase Bank today and they connected me to Recovery, where the CSR offered a settlement -- I owe 2300 - she offered 1600. My statements are being sent, and I am pretty sure that they are right about what I owe. I want this all cleared up. She said there is no way that they would report anything other than "Settled" to the CRAs.

She is faxing me a letter that I have until 12/21 to respond. I have the money to pay this, I want the issue closed, but is settling a really bad idea?

Searched around the site and I found this from "Negotiating with Original Creditors"

If you pay in full, you can get a "Paid as Agreed" rating, otherwise, "Settled" is the best you can do.

In recent years, the credit card companies have adopted a immovable stance on your account rating if you settle for less than is owed. They will agree to list your account as "Settled", but that's it. You can always try to get a better rating, but I doubt if you are going to have much luck. Remember, "Settled" is better than "charged off".

Should I just accept this offer? Should I send her a PFD letter back to the contact information she provides me with?

Thanks all . . .

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You won't get a PFD from Chase or from most OC's, especially with something this recent. Settling will ding your credit, but sometimes you don't really have a choice. Also, you may get a 1099 for the forgiven portion which you are supposed to report as income on your taxes. I settled an account with Chase, but I had some positive accounts to kind of offset the hit I took from settling. Score wise since the account is already charged off, whether you settle or pay in full, it won't really make a difference. If you do decide to settle, I'd try to see if they'd go lower. I settled my account for about 30% of the balance. Goodluck with whatever you decide to do.

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