i just settled a old debt but settled doesnt mean paid...why and is this gonna come back on me later?

Question

these ppl said i have to send them a letter requesting a settlement letter.i paid it so why just a settlement letter? will this come off my credit? very confusing. do i call the company i owed in the 1st place? is there someone i can talk to online that can explain tis to me? grrrrr

Answer 1

I agree with the other posters in saying the settlement letter will avoid the chance the remainder of the amount from coming back to bite you.

If you did not have that agreement, the collection agency "might" have, in the future, tried to collect on the waived amount, sold that amount to another collector or returned it to the original creditor for collecting.

A paid negative is still a negative.

You should have also requested that they remove their tradelines from your credit reports upon payment - they make those deals every day.

Unfortunately since you have already paid, you have lost any leverage that you had. You could still ask them but they probably will not do it now.

You should look over your credit reports to see if they are reporting accurately. If they are not, dispute the tradelines.
Everyone has the legal right to have correct reports.

If they fail to correct the inaccuracies within the time allowed the tradelines legally must be removed. Within 30 days if you are using a report you purchased from each CRA or 45 days if you are using the free reports. (the extra 15 days is a long time and that is why it's best to use paid reports to dispute from)

Also, their tradelines "cannot" be re-aged and remain on your reports for a longer period than they would have normally been reported.

You might click on my profile and do some reading in the links I have listed. To the FDCPA, FCRA, etc.
Learn what constitutes violations in reporting and how to deal with the violations.

Answer 2

A settlement is generally when you agree to pay less than the amount owed and they will mark it as paid. So they have "settled" for a reduced amount. When you pay the settlement amount your balance will be 0 and they will not come after you for more money. That is why it is very important to keep this letter as somewhere down the line they try to say you owe more money you can send them a copy of the letter that says you already settled with them.

Any negative information will remain on your credit report for 7 years. So only time can remove valid information. It will probably be noted that you settled, but paid as agreed. You just need to make sure that the account shows a 0 balance due after you paid it.

Hope this helps

Answer 3

Nothing is considered legitimate until it is put into writing. It is not only for the protection of the creditor, but also for you. Without this letter stating that you did actually pay them, they could come back in the future and claim you still owe them this money. This is almost more for your benefit than theirs. Be glad they are willing to do this for you. This is a good thing. But, having said that, you need to be very, very careful that the terms of the settlement letter are worded as strongly in your benefit as it is for the benefit of the creditor. Don't just sign the settlement letter. If you don't understand it, take it to an attorney or a legal person who does and ask them to explain it to you and to advise whether it protects you.

Answer 4

it will be off your credit in 7years and no it wont come back u settled.

Answer 5

not sure

if somebody "settled" it somehow, ask them