Wells Fargo CC offered settlement of 40% and marked settled on credit report

[jme]

Wells Fargo CC offered a settlement of 40% and marking my account settled on my credit report. I want to try to repair the charge off from damaging my credit. What can I do here?

[BV80]

12 minutes ago, jme said:

Wells Fargo CC offered a settlement of 40% and marking my account settled on my credit report. I want to try to repair the charge off from damaging my credit. What can I do here?

Original creditors rarely, if ever, delete a TL.  Usually, “settled” is about all you can get. 

[jme]

Should  I call them to be sure?

 

Will doing this improve my credit rating?

[BV80]

Just now, jme said:

Should  I call them to be sure?

 

Will doing this improve my credit rating?

It doesn’t hurt to call and ask.   I don’t know if it will improve your credit rating immediately.  As a TL ages, it has less of an effect on your score.  Look at it this way, a “settled” account looks better to a potential creditor than an outstanding debt.

Is the debt still within your state’s SOL?  If it is, the settling removes any worry of a lawsuit.

[jme]

1 minute ago, BV80 said:

It doesn’t hurt to call and ask.   I don’t know if it will improve your credit rating immediately.  As a TL ages, it has less of an effect on your score.  Look at it this way, a “settled” account looks better to a potential creditor than an outstanding debt.

Is the debt still within your state’s SOL?  If it is, the settling removes any worry of a lawsuit.

Acct says closed but doesn't show anything about when  it was last paid it just says closed Sep 09, 2018

It also says Charged off as bad debt

Dispute resolved; customer disagrees

[BV80]

Just now, jme said:

Acct says closed but doesn't show anything about when  it was last paid it just says closed Sep 09, 2018

It also says Charged off as bad debt

Dispute resolved; customer disagrees

If it was closed in 9/2018 for nonpayment, chances are that’s around the time the SOL started.  I believe MN has a 6-year SOL.  

[jme]

1 minute ago, BV80 said:

If it was closed in 9/2018 for nonpayment, chances are that’s around the time the SOL started.  I believe MN has a 6-year SOL.  

So is it worth  it to pay it?

[BV80]

Just now, jme said:

So is it worth  it to pay it?

There’s no way of knowing if you’d be sued, so I’d pay it considering you still have several years left on the SOL.  For me, I’d want to remove the possibility of a lawsuit.  

[Mook]

Advice needed...currently in AAA arbitration with arbitrator just appointed.  I have been negotiating with OC debt collector.   Was sued under warrant in debt and filed an MTC and affirmative defense.   However, have had 3 appearances and at the debt collector request, all 3 have been continued due to my motion but the judge has refused ruling on my motions only issuing continuance. Last hearing, debt collector advised accepting arbitration.   Judge still set continuance.  Currently have been trying to negotiate settlement to include 1..law suit dismissal with prejudice 2..my dismissal of arbitration 3..partial payment approx. 65% of debt.   The 4th request was removal of tradeline.  Debt collector advised a TILA violation to remove tradeline and would be reported as "settled".  From my understanding tradeline can be removed by furnisher, am I correct?  I can't find a TILA violation, is there one?  I have become 100% permanently disabled and could not pay so I was charged off.  My credit score fell from 800 to 600.  Without a pay/delete, there seems to be no upside for me to settle as my sole income is SSDI which can't be garnished.   Can you advise me on any regulations for tradeline removal?  This is my most important part of a settlement.  Thank you!

[BackFromTheDebt]

I think they could delete the tradeline if they wanted to.  

For some reason, there are many places that have a policy not to delete the tradeline.  

Here is the situation.  If a company has a policy, then a particular employee's job may depend on following that policy.  Even if it hurts the company to follow the policy, the employee will still enforce the policy, because of how much trouble it is to get someone higher up to agree. 

 

I know that is not very helpful.  

There IS an upside to settlement, though.  It would show your account as settled, rather than you owing money.  It won't have an immediate effect on your credit score.  Your score will still suck for a while.  It will be less bad, though.

The main thing is:  if at some point in the future you want to buy some property, the bank may or may not demand you clear out any outstanding debts and judgments.  If you have a judgment against you, that could last a very long time.  Whereas a bad score will fall off after 7 years. 

[Indy17]

I have not had a single bank agree to removing the line in the last 5 years. They act like it's a non-starter. I would just be happy with the 40%. try to challenge it on the report after settlement. 

[Bulldoger]

On 9/23/2021 at 8:59 AM, Mook said:

1..law suit dismissal with prejudice 2..my dismissal of arbitration 3..partial payment approx. 65% of debt.   The 4th request was removal of tradeline. 

1.  would not be needed if 3 is a lump sum.  getting them to agree on dismissal with prejudice if you are agreeing to payments I don't think it's something they will do. 

I never seen 4 happen either.  I have settled on account and have repeatedly filed disputes on tradeline for things like payment data incorrect, settle payment not being shown tot he point they remove it so not to be bothered any more.  

[magali]

On 6/23/2021 at 2:10 PM, BV80 said:

Original creditors rarely, if ever, delete a TL.  Usually, “settled” is about all you can get. 

 

really? I was searching for info about how to ask them to delete it from my credit report after i pay. A collection agency offered me a super low settlement to pay off a chase credit card debt and I was wondering if I should ask them before I pay. That's what someone suggested in an old thread, posted below, saying "You need a settlement agreement, signed by both you and Citibank, that states that they agree that they will not sell the balance of the debt to a CA or junk debt buyer and that they will delete any negative TL reporting on your credit reports."

 

 

 

[BV80]

5 hours ago, magali said:

 

really? I was searching for info about how to ask them to delete it from my credit report after i pay. A collection agency offered me a super low settlement to pay off a chase credit card debt and I was wondering if I should ask them before I pay. That's what someone suggested in an old thread, posted below, saying "You need a settlement agreement, signed by both you and Citibank, that states that they agree that they will not sell the balance of the debt to a CA or junk debt buyer and that they will delete any negative TL reporting on your credit reports."

 

 

 

You can ask them, but the point is that OCs don’t usually delete.  That’s not saying they don’t ever delete.  They just rarely do it.

In regard to a settlement letter stating they won’t sell the account and will delete the TL, you can try it, but they don’t have to agree to it.

If an OC settles with you and states the account is “settled”, it means just that.  The account is settled and nothing else is owed.  In the event that the OC sells the account, you show the JDB the settlement letter.  If the JDB still pursues you, sue it for FDCPA violations and consult an attorney for possible OC violations.