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Settlement offer


WillingtoFight593
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Hey,

 

I owe about ~$7500 to Chase. It’s been about 18 months since I last paid them. They are now sending me settlement letters they’re offering to settle for ~$2500. So I would be settling for about 33% of the amount owed. In your collective experience, does Chase go for less than this? Should I negotiate them down, wait for more letters...what do you guys think?

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It depends. Can you check your local court online to see if Chase has been suing lately? Can you afford the settlement, and any tax consequences? You will get a 1099C for the remainder.

It's my experience (though not with Chase) that when a OC offers a settlement that low, they are doing a last gasp Hail Mary pass before giving up and selling off to a JDB.

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5 hours ago, nobk4me said:

It depends. Can you check your local court online to see if Chase has been suing lately? Can you afford the settlement, and any tax consequences? You will get a 1099C for the remainder.

It's my experience (though not with Chase) that when a OC offers a settlement that low, they are doing a last gasp Hail Mary pass before giving up and selling off to a JDB.

I don’t see any lawsuits in my county or neighboring counties in the last 6 months from Chase. 
 

I can potentially afford to settle and deal with the tax consequences. I would really like to settle for $2k or less. And also I wonder if I could negotiate with them to get a better rating on my credit, such as settled instead of charged off? I’m new at this so excuse me if I say things that are impossible or don’t quite make sense.

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I ended up settling with Chase last year for 10% of what I owed.  But my debt was also less than yours, and (at the time) a bit older than yours.   On my reports it is still listed as a charge off but status is some variation of settled. 

If you have any desire to have a relationship with Chase in the future I would settle.  Also, if I'm not mistaken, the utilization (I'm guessing it's over 100%) is also tanking your scores. 

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1 hour ago, Impress said:

I ended up settling with Chase last year for 10% of what I owed.  But my debt was also less than yours, and (at the time) a bit older than yours.   On my reports it is still listed as a charge off but status is some variation of settled. 

If you have any desire to have a relationship with Chase in the future I would settle.  Also, if I'm not mistaken, the utilization (I'm guessing it's over 100%) is also tanking your scores. 

Did you wait for additional letters or did you call and negotiate with them? And yes the utilization is not doing me any favors that’s for sure.

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More thoughts.  What is your goal here? Avoiding a lawsuit, or cleaning up your credit? 

And, do you have other debts in default? If you settle with Chase, that will be reflected on your credit reports.  And other creditors will see that, and figure if you have money to pay Chase, you may have money to pay them.  So they may come after you.

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On 1/19/2021 at 2:21 PM, nobk4me said:

More thoughts.  What is your goal here? Avoiding a lawsuit, or cleaning up your credit? 

And, do you have other debts in default? If you settle with Chase, that will be reflected on your credit reports.  And other creditors will see that, and figure if you have money to pay Chase, you may have money to pay them.  So they may come after you.

I would *like* to clean up my credit, but I can't afford to pay everyone. I have 3 major debts -- this one with Chase for ~$7500 which I could afford to settle for about $2k, a case that is supposed to be in arbitration with Portfolio Recovery (mailed in the forms to open the case, sent certified mail, have not heard anything back from AAA or PRA), which was originally Synchrony Bank for a bit less than that, and then one with Bank of America for about $6k. BoA filed a suit back in early 2020 but it was dismissed and I was never served. I am guessing everything that happened with Covid, they are delaying suit. At the moment, I think I could gather up about $5k to settle all if them to both clean up my credit (slightly, I know settling isn't great but better than it staying charged off for another 5 years, I guess?) and avoid further lawsuits.

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On 1/18/2021 at 9:25 PM, Impress said:

I ended up settling with Chase last year for 10% of what I owed.  But my debt was also less than yours, and (at the time) a bit older than yours.   On my reports it is still listed as a charge off but status is some variation of settled. 

If you have any desire to have a relationship with Chase in the future I would settle.  Also, if I'm not mistaken, the utilization (I'm guessing it's over 100%) is also tanking your scores. 

Did you settle directly with Chase or a CA? Did you get a 1099c? 

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On 1/18/2021 at 9:40 PM, WillingtoFight593 said:

Did you wait for additional letters or did you call and negotiate with them? And yes the utilization is not doing me any favors that’s for sure.

Sorry for delayed response.  I received some letters from a firm collecting on their behalf.  I didn't have money at the time to settle.  Eventually Chase sent me an offer for 10% and since I had the money, I felt it in my best interest to settle.  Though if I had had the money to settle earlier, I would have.

On 1/21/2021 at 6:24 PM, womanonfire said:

Did you settle directly with Chase or a CA? Did you get a 1099c? 

I settled directly with Chase.  I could have paid over the phone or in a branch.  I chose to do so in a branch since a) there was one near me, and b) I wasn't comfortable with them having my bank account info.  Not that I assumed Chase would take more.  I'm just paranoid.  :) Haven't received a 1099c as of yet. 

Update Edit:  Decided to check mail and there was a 1099c from Chase.

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