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HSBC/Yamaha Debt Settlement


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I financed with HSBC Retail Services for a Yamaha purchase and deployed shortly thereafter. I had no payments for three months and by the time my payments started I was already out of the country. Somehow my automatic payments never went through and I never received any notice of this nor a statement via mail. By the time I returned a and saw what was happening there was not much I could do. I called HSBC at the time and told them my situation and they froze the account as a bad debt. After my last deployment I just returned from I have the funds to settle and I'm looking for some advice on how to go about this.

Date Opened: 03/2007 Balance: $16,419

Date Reported: 03/2008 Amount Past Due: $0

Date of Last Payment: 10/2007 Actual Payment Amount: $0

Scheduled Payment Amount: $536 Date of Last Activity: N/A

Date Major Delinquency First Reported: 01/2008 Months Reviewed:11

Creditor Classification: Activity Description: Closed

Charge Off Amount: $16,419 Deferred Payment Start Date:

Balloon Payment Amount: $0 Balloon Payment Date:

Date Closed: Type of Loan: Charge Account

Date of First Delinquency: 05/2007

Comments: Charged off account,

Account closed by credit grantor

I called HSBC Account Recovery earlier today to see what the situation is. After checking my credit history all it shows is HSBC having the account and nothing about a CA. HSBC confirmed that the account has never left their possession and that it was still frozen at $16,419. I asked about what settlement they would be willing to offer up front and that was a 50% payoff but they couldn't have it removed from my credit history, though it would be changed to "debt settled for partial". The original financed purchase price was around $10,000 so all things considered I am fine with a $8,200~ settlement.

I was told I could either pay over the phone via card or by mail with a check. I'm looking for advice on how to go about paying this and having the settlement in writing so I will be in the clear as far as having HSBC come after me for more money later. I'm assuming that paying by check would require some sort of documentation on their part being sent to me or at least at my request. Is it possible to do this over faxes or must all of this happen with certified mail? Also what are my chances of being able to dispute the negative mark on my credit with it being a partial settlement? I haven't checked my score recently but I did about 9 months ago before my deployment and I had around a 650 with the 1 charge off and my 1 good standing account ($1,000 limit CC, always paid on time/in full). How should I expect the partial settlement on the charge off to affect my score?

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I talked to HSBC again today and confirmed the 50% settlement for $8,209. They're mailing me the settlement offer which I can then pay by certified check or over the phone. I was told once I mailed the check or called it in to expect it to take 15 business days before it would be cleared and a confirmation of the settlement and receipt to be sent to me. I believe it can take up to 90 days for HSBC to report the change to the credit agencies and for my report to be changed. Will disputing the negative charge and calling the big 3 agencies help the process move along much more quickly?

I am trying to resolve the negative mark issues as quickly as possible as I am attempting to take out a home equity loan with a decent interest rate at the moment. I've had some pretty good fortune over the last couple of years financially and I currently own my home and property outright. How will the "partial payment settlement" affect my home equity loan and the interest rate? My home is valued at around $205k and I am wanting to take a $30k loan for a new car purchase. I have no other loans/debt besides the settled charge and my CC has always been on time/paid in full.

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