Settlements w/o Deletion

That is a big lie.
There is no federal regulation that says they can only report it 2 ways. There is no law that says they have to report it at all.

 

Susanna,

Raising the ID fraud argument won't work. You've swapped a flurry of faxes between yourself and MBNA plus, you returned a financial disclosure form { I'm recalling your earlier post}. They have all they'll ever need to prove it's yours. Also, I doubt you're as judgement proof as you think. If you never signed a quit claim deed when your husband re-fi the house, you still are a part owner of the home. Plus, if Co. allows wage garnishments they'll be a partner when you get a job.

As stressed and as convoluted as your thinking is, I'm going to change my advice. I'd suggest you borrow a $1K from your MIL and file bk and end this forever. Because, if you settle, and AMEX sees the settlement on your credit report you can bet they'll began to become more aggressive. I think Marie is right. Save your money for your family needs and end this personal nightmare.

 

The ONLY time I recommend going to judgment instead of filing chapter 7 (chapter 13 is IMO a waste of time and resources) is, if you have potential future assets,such as a civil lawsuit settlement.OR in cases where a judgment would actually HELP someone, such as a senior or disabled person going on medicaid.In most States, a judgment stays active for 10 to 20 years,so long after it is off your credit reports it is still enforceable and prevents home purchase,refinancing and sale. It messes up probate, and since it is public record, can be potentially embarassing in job searches, and interfere with obtaining many professional licenses and bonding.

 

Susanna | 94 They are in no way open to reporting it other than settled. They explained to me that it's "federal regs" that mandate their reporting and that they have only 2 options -- debt satisfied or not. Re: Settlements w/o Deletion
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This is a bold faced lie they told you.
They pull this crap on us and have the Gaul to think that we owe them our business.
lb59

 

They can't even be honest with us about a small thing like this so why should they be trusted with our finances?

 

If I were you I would go pay it and settle the matter. When you owe that amount of money they could turn around and turn it into a judgement, which is worse. Pay them and dispute it in 6 months or so. It may or may not work or it may take longer to get it off of there. But I wouldn't risk a judgement. Most creditors only care that something has been paid off for 12 months, sometimes 24 months. And who knows, by then you may get it removed! Think about the long term, not just how your credit will look today. I wish I new this a few years ago!

 

Susanna,
If I remember correctly (without searching back through your posts), this account is with MBNA, right? If it is, I have to say, take the settlement! As much as it sucks to "get nothing" out of it score-wise, you will be done with them. I had an account charge off with them last year (long story short, but basically I had worked out a payment plan and didn't get it in writing...next thing I knew they charged off! This was, obviously, all PRE-creditnet!!). This has been a NIGHTMARE for me! They will not work with you after the charge off. I contacted them days after the charge off and they will not talk to me at all. I have written dozens of letters, planetfeedbacked them, called....did everything but carrier pigeon message. All I get are rude, leave us alone, your account is a closed matter notes in return. They verify when I try to dispute. The CA that MBNA claims has the account says they don't. There is no way for me to better any of this. I am really waiting for someone to sue. The amount charged off was over $6000 (like you, most of it fees and interest). If I could turn the clock back, I would have taken the settlement that they had offered a little while before it was charged off (and, OF COURSE, gotten it in writing).
Good Luck....I know how those sleepless nights feel!!!

G

 

Posted by Susanna:
"Also they gave me another option -- pay the past due on the account, 0% interest for 2 years, they will reopen the account and list as current paid as agreed but with the 150-day late. Thoughts?"



What happened to the above deal they were willing to offer you on May 10? Are they no longer offering this?

Dani

 

This one is your best bet altogether! One 150 late will hurt your score less as time goes by. Not to mention it helps you re-establish yourself with this company.


L

 

Susanna,

I am a little confused. MBNA is offering you a great deal. If you settle you have to pay 40%, plus you're stuck with an R9 credit rating. If they charge it off you're looking at a lawsuit, unless you plan to file BK. This is a great deal and the R5 will harm you very little in a couple of years. In 2-3 years your credit could be in tiptop shape again, otherwise you will have either a chargeoff (plus probably a judgement) or a BK7 (if you qualify). I would put some serious thought into this.

Dani

 

Susanna, (please do not take this personally) your credit is going to be bad either option you choose! Either an R9, R5, or ultimately a judgement. The judgement is what you DON'T want, especially one that will take a number of years to satisfy. Believe me, I have one from 1998 that I am still paying!!! So, either way you look at it you are gonna have to make payments, either now with MBNA's settlement offer or a year from now after MBNA obtains a judgement against you. Are you looking for work? Can you borrow the monthly payment? Can you borrow a portion of the monthly payment? You DO NOT WANT A JUDGEMENT! Don't spend time worrying about your CURRENT credit rating/scores, do ALL that you can to prevent the worst - A JUDGEMENT!