     Anonymous | Wednesday, January 26, 2000 - 10:39 am 
I have seen quite a bit of conversation in these boards about settling charge-offs and collection accounts. How about an account that is still active? (This is a credit card account that was closed by the account grantor, but to which I have been making payments.) The account has been late many times in the past, and last year I had some late payments also, one as recently as Nov. 99. I now have a small amount of money, enough to pay off the account in full if I have to. I am more concerned about getting the late payments off my credit report than saving money by making an offer to settle. Any tips on how I should go about this? Should I propose a settlement in writing, or by telephone? Thanks. |
| rcb | Thursday, January 27, 2000 - 04:54 am
It's typically more difficult (but not impossible) to bargain with a creditor that you have an immediate obligation to (read: monthly payments due and/or being made - aka the account is not charged-off, etc.) than a creditor or collection agency trying to collect on a debt that they charged-off or purchased for pennies on the dollar. They don't HAVE to deal with you, and they've got seven years PLUS whatever time between now and (if/when) you default to hound you for payment.
But don't let that hold you back. If you're confident enough with your oral negotiation skills, call them up. And don't settle for the $6.95/hr jerk customer service rep that answers the phone. Push it up the ladder until you get someone that has the authority (and brains) to talk with you. If you can't verbally negotiate very well, send a letter. Either way, get the agreement IN WRITING, expounding on the full settlement agreement (i.e., statement that your credit reports will be completely cleared of any derogatory information, etc.). Make sure it's on the letterhead of the company that's listed on the credit bureau's records (reports). Make sure it's signed by an authorized agent of the company.
Don't send them any type of "settlement payment" (other than your monthly payment that you're supposed to be doing) unless you have everything IN WRITING. Creditors, especially ones that have you up against a wall, will lie, cheat and steal just to get more $$$ out of you. Don't trust their word - get it in writing.
You may be dealing with a creditor that just, plain and simple, refuses to deal (i.e., won't clear your bureau files, won't agree to a partial settlement, etc.). Just don't get irrate, beligerent or hostile. Be decent with them and most will return in kind. That doesn't mean they'll deal, it just means they might be reasonable.
If they won't deal - if they won't clean your records - you've got to make a decision. If you're going to pay it off, then do it now and not three years from now. If you procrastinate and then pay, you're only adding years to having your credit records in a derogatory state. |
