I have a line of credit with my bank and it had gone into a "chargeoff state" which is a day or two of limbo in their departments before as they move it to a full chargeoff. I was able to get a hold of someone today to negotiate a settlement. They offered 50% of the debt payable in 30 days which sounds reasonable. They are unwilling to remove any marks on my credit report and they told me my report should show a chargeoff and settlement on my credit report. I asked for the agreement in writing before I agree - I really would like to keep working on getting some relief on my credit report. Do you have any advice on what and how I should ask for this?
Just my view from the cheap seats... You might want to do this is phases: 1) pay the settlement. then, at least it's no longer a festering boil on your credit report that could later wind up in court or whatever. At least it's closed. 2) in a year or so, dispute the tradeline to see if the bank has "forgotten" about it (i.e. dropped the active record of it). Chances are, they will have cleaned it out and will not be able to verify it. In which case the entry will just disappear. Remember, they don't have to accept anything less than full payment and they can take you to court and get a judgement against you. Not that they will, but they could if it's not settled. They have no incentive to "clean your credit report" and every incentive to keep it on for as long as possible. You're in the "poker" phase of negotiations. From what you've written, it doesn't sound like they'll delete (i.e. not verify) this, or at least not agree to that in writing. It can't hurt to ask, but don't hold your breath. If they don't, then just settle to put it behind you and come back to it in a year.
Is this a LOC against your home, a "Home Equity Line of Credit", or just an unsecured line? There are some differences here. But, it sounds like a pretty good deal. Per my experience, the first deal on the table is usually the best. But, get it in writing. On a positive note, it looks like you avoid another account on your report, by avoiding a "Collection Account". Cutting your losses so to speak.
It is for an unsecured line of credit, and I am happy with the settlement dollar amount. Since it was just hitting the 120 day mark they are in the process of charging it off - if that is true I would like them to show that it was never charged off, but paid. See what I am driving for?
Exactly, minimize the damage (both to credit reports and bank account). Again, a pretty good deal all the way around.
Pay that account as advised above. Let it simmer for a bit and dispute it based upon account history, status and date of last activity. Should come off.
