settling for a payment to pay off the account?
On a past due account, that you are asking a debtor to agree, as a conditon of cashing a check as payment, that they agree to remove the item as ever being late period, and to settle for a lesser amount? Is this practice legal, a credit repair place said it was a tactic being used?
2007-05-21 08:17:54 · 8 answers · asked by 8B8 1 in Business & Finance ➔ Credit
I have never heard of this and it is probably not legal. One a bad debt is reported, it will stay on your credit report even it is paid. It will show up as resolved, but it is still there. If it is resolved, you may want to check with credit bureau to see if it can be removed, but I don't think a creditor can remove it.
2007-05-21 08:38:40 · answer #1 · answered by tom m 4 · 0⤊ 0⤋
I can absolutely guarantee you that it IS LEGAL!
There is no law that prevents a creditor from deleting or changing any line item on your credit report.
There is nothing in the agreement between the creditor and the credit bureau from doing it either.
Believe me, I've spent the past year giving out this advice. I've read all the laws and agreements.
And I have constantly challenged people who disagree with me to post a source, law, or reference to prove me wrong. I see 4 more people claiming that it's not legal...yet they offer no proof.
If you read through some of the past answers here in the Credit area, you will see a number of "professional" collection agents who also verify what I am telling you.
OK, that said....collection agents are known to lie something awful. DO NOT send them any payment unless they first send you an agreement IN WRITING detailing the terms of the settlement, and a statement that once the debt is paid they will delete the item from your credit report.
Note I said DELETE! Changing it to "paid" does not remove the negative information from your credit report about late payments or collections. It just reflects that there is no balance...but it's still a negative item on your report. Don't fall for this trap.
2007-05-21 08:49:32 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Sorry yet that's a valid get entry to. for that reason the unique Creditor will checklist the account as a cost-Off and characteristic a 0 stability. the sequence company will checklist the present stability due. the only factor you're able to dispute is that if the unique Creditor is itemizing a stability or you have extra desirable than one sequence company reporting the debt on an analogous time.
2016-10-05 12:08:39 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Credit repair places lie to get your money.. Companies won't do it. If an entry is true, there is nothing you can do to get it removed.
Work with consumer credit counselling instead of the credit repair place. You will have better luck. You can contact the companies you owe money yourself and work the same deal with them that the credit repair company can. Save the Credit repair place's fee.
2007-05-21 08:41:38 · answer #4 · answered by New rider-- again 3 · 0⤊ 0⤋
You can ask but if they do remove it then they will be in violation of the act. You can settle for less but your credit file will show settled for less than full amount.
2007-05-21 10:18:03 · answer #5 · answered by golferwhoworks 7 · 0⤊ 0⤋
Studly is absolutely correct!
2007-05-21 09:18:22 · answer #6 · answered by Anonymous · 1⤊ 0⤋
That would not be legal, ethical or fair.
2007-05-21 08:40:30 · answer #7 · answered by JQ 4 · 0⤊ 0⤋
It's not true.
2007-05-21 08:21:59 · answer #8 · answered by Anonymous · 0⤊ 0⤋