Jump to content

How do I remove "settled for less than original amount" entry


emceeaye
 Share

Recommended Posts

Hi experts,

I recently reached a settlement agreement with Barclay's bank for 45% of the original balance. I am concerned that when I look to get a loan on a home in a few years, because of it saying "debt settled for less than the original amount" on one or more of my credit reports, I will be denied the loan.

Is it worth hiring a credit repair spe******t to remove it for me? Or, is it possible to do the same thing myself? If I do go with a credit repair company endorsed by the government, what is a good rate that I should expect to pay? If I can do it myself, what is a good resource to use to get information on what steps I should take to get it removed? How long will it take to get this entry removed from my credit report(s), worst case scenario and best case scenario? I'm ready to work hard at this if I know its realistically possible.

Any insight into this would go a long way for me...Thank you in advance.

Link to comment
Share on other sites

Practicaly impossible, unless you did a "pay for delete" in the first place.

Did you get the settlement in writing? Did they agree not to sell the balance? Are you aware you'll be getting a 1099c for the balance?

A debt fixer can't help you...you'll be throwing your money away.

You might wait until the 1099c shows up and then check your reports. If it is reported, try a disput as "not mine". You may get lucky and they won't respond.

Link to comment
Share on other sites

Hi willingtocope,

Yes, I did get the settlement in writing. The agreement as it states in their settlement agreement letter to me is to pay 45% of the $10,180 balance, which is $4,582.00. It has to be paid in 3 installments as stated in their settlement agreement letter to me. I have already satisfied the first installment obligation to pay at least $458.00 by 03/02/2011 (I paid $500). The 2nd installment payment has to be for at least an additional $458.00 by 04/02/2011. The remainder of the $4,582.00 settlement total must be paid by 05/02/2011.

It says that after settlement amount is paid, my account will be "paid in full" and they will send an "update" to the credit reporting agencies. But, will a comment on the credit report also read "settled for less than the original amount"? If so, is it worth requesting for them not to include the "settled for less than original amount" comment? To do this, will it be necessary to pay for a delete, and is it too late for me to do this since I've already paid the first installment to them?

They did not expressly agree to "not sell the balance", but is it safe to assume that since they sent me the settlement offer in writing and the following statement that once I fulfill my obligations as specified in the settlement agreement letter, that the balance will be considered paid in full? "As of the date of this letter, your account balance is $10,180.88. Upon receipt of $4,582.00 in accordance with the terms set forth below, which is a 55% reduction of your current balance, we will consider your account as paid in full and will send an update to the credit reporting agencies."

Yes, they notified me that I'll be receiving a 1099c because the difference between the previous account balance and the payoff amount is greater than $600. I feel like the liability of having to pay taxes on the forgiven debt is a worthwhile sacrifice if it will not say "settled for less than original amount" on my credit report.

Thank you in advance.

Edited by emceeaye
Link to comment
Share on other sites

Yes, I will have to pay $3500 by 5/2 if I follow through with the settlement agreement which is a financial hit. Thankfully though I have family member who will at least give me a loan for it...

If it won't say "paid in full" and instead says "settled for less than original amount", can't I still request a PFD? I thought that it's only final once I paid the full settlement amount. Since I've only paid $500, doesn't that mean that I can still negotiate for a PFD?

What's confusing to me is that a representative said that it will say "settled for less than original amount", even though in the settlement agreement letter it says "Upon receipt of $4,582.00 in accordance with the terms set forth below, which is a 55% reduction of your current balance, we will consider your account as paid in full and will send an update to the credit reporting agencies."

So, that made me think that it can say both "paid in full" and "settled for less than the original amount". It seems like a contradiction, but perhaps "paid in full" only refers to the "full" settlement amount which in this case is $4,582. If this is what they mean, then I can see how a "settled for less than original amount" can also be an entry on the report to mean that this "full" amount I paid was less than the "original amount" of $10,180, right?

I'll check with Barclays to get clarification about this on Monday morning.

Edited by emceeaye
clarification
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.