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Help with how to approach credit repair


Zeroskillet
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$198.00

Account Type: Revolving Charge Account

Payment Status Charge-off

Terms: Revolving

The Bank handling the account now is offering me a settlement of $49.56, which represents 25% of the balance owed. Letter says they will report it to the credit bureaus as "settled in full" upon payment.

I planned on calling them to ask for an amount they'd take in exchange for a removal or "Paid as Agreed" report. To then be followed by a letter from myself as well.

When I make this call I will ask them to send me a second letter of agreement with the terms that are agreed upon.

Would this be a good way to approach it?

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My goodwill letter of agreement goes as follows:

To whom it may concern,

After recently reviewing my credit report, I took notice that the above-mentioned account is currently in Charge off status. I also just recently was forwarded a letter that was sent to a previous address I have not lived in for more than 2 years. I sincerely would like to take care of this account as soon as possible.

Due to unforseen significant financial trouble including abruptly becoming independent, hardships with employment and living on my own, I unfortunately got behind on my payments and was unable to meet my obligations. However, since then my situation has greatly improved and I am in the position to recompense this debt.

I am willing to pay World Financial Network National Bank one payment equalling the amount of $198.30 provided that the above account is updated on all credit reporting agencies to state: PAID AS AGREED, or completely removed from all credit reporting agencies upon my final payment.

I am not agreeing to an updated credit report that states this account as: “PAID CHARGE OFF” or the like, as this will not significantly increase my credit score, nor will it reflect my sincere willingness to restore my good name and hopefully, someday, again do business with your company.

Your written response will serve as an agreement to my proposal and I will begin payments. Thank you very much for your valued time.

How does it look?

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Zero, it is a well-written letter, however, I would get straight to the point and leave out the part about hardships, money, etc.

Since you are willing to pay the amount, just get right to the point with them. Your agreement and what you want the company to do. You are doing the right steps about getting it all in writing before making the payment.

Personally, I would delete the 2nd paragraph, but overall, your letter is great and I hope you get the response you are looking for.

Or as you stated before...calling them and writing down all the information they tell you with a follow-up letter; don't send in a payment until you get a written response.

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UPDATE: Initial contact on phone.

I spoke to the representative of World Financial Network Bank, he first told me that they are not a collection agency but instead the bank that handles the accounts for Express.

I told him I would like them to send me a new letter/validation(?) with a new agreement aside from the offered "settled in full" in exchange for 25% of the owed. I told him I would like to send over a goodwill letter stating I would like it removed or "Paid as Agreed" in exchange for full payment.

He said they don't send out letters stating other agreements because they use templates. He said to pay it over the phone with a card(3days to clear) or check(45 day clear) and it'll be posted as "satisfied paid in full with original lender"

I told him Ill get back to him.

What should I do now?

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This is great news that the account is still with the OC; I'm glad you posted the bank - I too have an Express account.

Ok, did you write down the reps name and contact information? This will help you b/c you could write a letter up.

I would write a letter up stating your conversation you had on the phone with him. Type it up and have a money order with the amount you owe ready to go. I would call the bank back, letting the rep know exactly what you are doing. If everything sounds good, I would send in the letter and money order.

Make sure you state, "If this money order is cashed, World (the name of the bank) has agreed to update this account on my credit report with all 3 credit agencies "PAID AS AGREED". Copy the letter and money order.

When this happened with me with Southwestern Bell, they sent a letter to me stating the PAID AS AGREED and updated my CR with all 3 CRA (after I made the payment).

I hope the same works out for you in your given situation.

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It is a charge off. It should be deleted. Just pay them the negotiated amount for settlement in full and then dispute it with the 3 CRAs as "inaccurate".

So send in the letter. Wait for a reply, then pay even if theybreject negotiation term to mark as Paid as Agreed. After that dispute whatever kind of mark they claim?

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