I just received a settlement offer from a credit card that was closed over 5 years ago. Total amount owed was $753 and settlement is for $310. I have disputed this for all this time because my original credit limit was only $350 and the company(First Premier) tacked on outrageous fees which i did not agree with. Now that this is with a collection agency, should i accept the offer to settle, and if so, can i have them remove this from my credit report?
2007-11-26 07:15:54 · 13 answers · asked by cbbcountess 1 in Business & Finance ➔ Credit
by the way, this is a bad mark on my credit report and i was hoping to have them remove it if possible. Anybody have luck doing this?
2007-11-26 09:56:36 · update #1
Depending on what the Statute of Limitations (SOL) is in your state, this debt is probaby past the SOL So they probably can't sue you. Check your SOL: http://www.fair-debt-collection.com/SOL-by-State.html
Negatives only stay on your credit report for 7 years. If this is already 5 years, that's only another couple years till it falls off your report. You could opt to just ride that out.
If you do want to settle, offer them about $200 as full and final settlement of this disputed debt just to make it go away. Do not acknowlege the debt. Don't talk to them on the phone. Do everything in writing and don't give them access to your bank account. You can ask they remove the negative -- maybe they will, maybe they won't.
2007-11-26 07:37:01 · answer #1 · answered by bdancer222 7 · 3⤊ 1⤋
That is really odd that they would offer you a settlement if you are only 2 months behind. Typically, credit card debt doesn't get charged off until you are about 120 days late. If you do agree to a settlement, you know they are going to close your account if they haven't already. Settling for 70% of the amount due when you are only 2 mos behind is actually pretty good. Most times they don't start offering settlements until months if not years later. Anything you do, should be put in writing. You can call them and offer them a lump sum if you have some money on hand, but be sure if they agree to it, that you have them send you a letter outlining the terms, and then send them a money order. Do not send them any lump sum until you get the agreement in writing. They will not do a pay for delete on this item though. Most you can expect is it to have a PAID next to it on your credit report.
2016-04-05 23:27:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is already a bad mark on your credit record. If you pay it now, it will still be a bad mark. The credit card company has written this off as a bad debt a long time ago. Some collection agency just wants to see if they can earn a big fat commission
2007-11-26 08:51:41 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If you have been disputing the amount, I would not take the settlement offer. Other companies buy these accounts from the original company (in this case First Premier) then try to get their money back by offering what seems like a good settlement offer. However, what they aren't telling you is that this account was paid off by the company that bought the debt. I would not take the settlement offer.
2007-11-26 07:26:39 · answer #4 · answered by Anonymous · 2⤊ 1⤋
I wouldn't pay the bas*ards a damn dime. They won't abolish it from you credit report anyway. They've written it off as a bad debt. I keep getting letters from collection agencies from credit accounts I had fifteen years ago. Nothing happens. They just keep sending me letters in hopes that some day I'll agree to some kind of 'settlement'. Credit card companies are parasites on society. They encourage you to "spend, spend, spend..." and when you can't pay, they leech on to you like the blood suckers that they are - and that's only after they've charged you interest rates that would make a Mafia loan shark blush! This is nothing more than legalized usury. Banks and credit card companies, along with collection agencies, lawyers and doctors should all be nationalized so that they can only charge fair and reasonable fees to their customers. -RKO- 11/26/07
2007-11-26 07:27:58 · answer #5 · answered by -RKO- 7 · 2⤊ 2⤋
For $310, I would settle the issue. You cannot have this removed from your credit report. It will stay there for about seven years. Whether or not you agreed with those 'outrageous fees', I'd venture you agreed to them in the 'fine print' when you initially accepted the card. The laws of credit disclosure require that you be informed of such potential charges when you obtain the card. That you didn't read the fine print isn't THEIR fault.
2007-11-26 07:26:22 · answer #6 · answered by acermill 7 · 0⤊ 1⤋
You can settle with them but keep in mind if you needed to refinance your home or buy and expensive item the institution can tell you that you will need to pay the settled account in full and then they will loan you the money. It will reflect on your credit report as settled and there is no way to remove it for 7 years.
2007-11-26 08:44:43 · answer #7 · answered by jv 1 · 0⤊ 0⤋
It will continue to be on your credit report even after 7 years if they continue to report it. You owe the money, so you should pay it. The item will be marked "settled for less than amount owed" on your credit report.
2007-11-26 07:57:19 · answer #8 · answered by Debdeb 7 · 0⤊ 1⤋
If it's already with a collection agency it will stay on your record for 7 years. I definitely would take the settlement.
2007-11-26 07:22:04 · answer #9 · answered by JF_14 3 · 0⤊ 1⤋
No. They are offering to settle because this is likely not collectible anymore and if you pay it'll probably be added to your credit report for another 7 years whereas if you don't it'll be deleted in 2. You should check out this site:
www.creditboards.com
Edited to add: bdancer222 is giving you really good advice. Take it.
2007-11-26 07:25:10 · answer #10 · answered by grob 7 · 0⤊ 2⤋