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  1. #1
    DcK
    DcK is offline
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    Should I pay settled charge off?

    I first want to thank Christine for this wonderful site, I've been working on cleaning up my credit w/materials borrowed here. Thanks.

    Question: I have a medical charge off, it's in collections, for the amount of $965, charged off Aug.2000. LLC Collections sent me a settlement offer for 50%.

    Problem: If I pay the 50%, LLC won't delete the account. They will not report account as "paid" or "paid in full" They will only show "settled payment". They won't even send me a fax or letter confirming they'll update my credit account before I pay? They'll only fax me a "credit card authorization form."

    Anyway, after talking to two supervisors, they are unwilling to negotiate. I'm trying to decide if the "settled payment" on my credit reports going to be a positive enough boost in my credit scoring, worth the $483 paid?

    Thanks in advance - DcK

  2. #2
    Registered User Junior Member
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    Mar 2003
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    DcK,

    Very likely not. Your best course is to institute a "for deletion only" policy and then work from there. There are many options for you, but limited options for them. You can:

    1) Begin to document legal infractions and threaten to sue or settle for a deletion
    2) Offer them a little more in the settlement if they delete
    3) Remind them of the statute of limitations and then wait awhile
    4) Give them a sob story about why you have to have it removed.

    There are others options as well. You need to "read" the person you are dealing with or talk to a supervisor. You might want to send a letter (but don't admit to anything).

    Have you had them validate the debt yet? If not, start there.

    JC

  3. #3
    Administrator
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    Announcement to creditors and collectors - rev. 9-1-2002 (inquiries)

    I sure wouldn't remind them of the SOL if it's not expired. I see many medical judgments for about $100.

  4. #4
    Registered User New Member
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    Georgia
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    what is sol for medical is it a written, oral , or what kind of agreemnt?

  5. #5
    Registered User Enthusiast
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    boston
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    only for deletion...

    .... if the charge-off has already been settled, this means that you have no further obligation to the original creditor. i would try to negotiate for total deletion of the account in lieu of partial or full settlement over and above what you already paid to "settle" the chargeoff. it is in the creditor's interest to collect a larger portion of the original debt rather than continuing to report it delinquent, though not all creditors exhibit intellignece; some would prefer to stick you with derogatries rather than bring in more cash to offset their losses-- the decision is theirs, so work with them if they're willing to work with you, get it in writing before you send money, and if asshology is more important than recovering debt that was already written off, let them sponsor shareholder luncheons. buy one share of their stock and spout off what they truly deserve.

    unless you get DELETION in paying chargeoff, it is unlikely to afford you any advantage as per FICO scoring, the industry standard of credit {UN}worthiness. if paying any part or all of the debt from a chargeoff is to benefit you, the derogatory entry MUST be totally removed from your credit profile-- if you cannot secure this action IN WRITING from the creditor, tell them to stuff it up where the sun don't shine, and get on about the business of living. turning down cash, even if only a part of what the debt originally was, is not in the interest of a creditor, though some consider vindication more important than cash-- these will most likely file bankruptcy sooner rather than later, and when they do go under, your debt follows, unless it was sold to a third party prior to the creditor's demise. you may also be able to settle it with their bankruptcy trustee at pennies on the dollar, or less.

    the credit indusrty has handed full control over to a set of patently defective computer programs authored by none other than {UN} fair isaac. while there exists a statistical basis for the way this works, it has no provision to address individual needs and qualifications, or the shortcomings, of credit applicants falling outside a pre-determined modality. no thinking at all is involved-- this task is delegated to machines, so that nobody has to decide anything, and claims of inequitable bias can be categorically dismissed. the quality of individual merit has been replaced by a statistical evaluation of "risk;"-- loan applicants can no longer be evaluated by merit offset by risk; they are autonomically judged on a scale that measures risk alone. lending, especially in the real estate industry, is no longer a free market enterprise. our federal governement has turned it into a communistic farce, where rights of the individual are abrogated in favor of statistical models, this relegated by computer. no one is allowed to understand, much less challenge, the quackware that controls the course of our lives. wouldn't stalin and saddam hussein be proud, if only they knew.......

    remember the keyword to taking care of past credit problems:--
    DELETION!!

    welcome to amerika, 2003. i've spouted off enough again here. good night.

  6. #6
    Administrator
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    Well, you can't just refuse to pay, because they CAN sue. Re. the SOL, look for Whychat's site and/or ask at Creditboards - it's a lot more complicated than just the number of years.

    I'd also request validation, then dispute as "disputed" with the bureaus, and try'n get some violations like JC said.

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