CA wants to settle remaining balance of charge off

It is unlikely there is any difference in the effect on your scores between having a collection account marked "paid in full" vs. "settled in full".

What you are saying is that the earlier CA promised to settle the account for less than full payment, used deception to collect on the debt, and breached their agreement with you. What did you get when you made the earlier payment to indicate that you had settled? How did the earlier CA mark their TL after you settled?

When did this originaly go delinquent?

 

With your letter, you should be able to force both correction of the original charge-off to settled in full, since it is being reported in error, and make the new CA go away.

You might also have a breach of contract with the original CA, since they failed to treat it as settled as per your agreement. How long ago was your settlement with the first CA?

Who is currently reporting the charge-off account? Mitsubishi, or the first CA? Your last CA didn't do what they said they would. Do you think this one will do any better if you throw $2K at them that you don't owe?

 

Have you disputed the Mitsubishi TL on your CR with the CRA? If so, did they verify it?

 

You and they agreed to settle in full. They breached that agreement, continue to report and verify erroneously, and represent the debt as not settled in full.

Run this by an attorney with experience with FDCPA and FCRA law. Instead of paying money you don't owe, maybe he can negotiate payment for damages, removal of the erroneous TL, with your attorney's fees covered by them, and some assurance that it won't come back again.
See: www.naca.net

 

That is why at this point you should contact an attorney.

The first CA breached your agreement, and/or Mitsubishi failed to update, and "verified" their error. That is where their liability began, but if you let time pass, they are off the hook and you are back to square one.

You can mess around chasing CAs as this is passed from CA to CA, or you can contact an attorney and go after the first CA, the second CA, and Mitsubishi, and finish the matter. You have a letter from the first CA, so they will probably want to just cut their losses. You might get damages, and you might get attorney's fees, and/or you might settle for less damages but removing the TL, but either way, your outcome is likely better than paying more money you don't owe.

The sooner you deal with it, the sooner you stop the circus. There are no brownie points for patience.

 

Weapon X. Relax. Unlock. Unload. Take a deep breathe. Exhale. Seek out an attorney with a free consultation. They do exist. Take your paperwork. Primarily the state from the CA that states settled in full. Why? Because that CA is on the hook for the account. Not you. That CA entered into an agreement with you pertaining to the debt. You settled with that CA. Let an attorney go after them for the account and whatever damages this is causing you.

Pilots fly. Racers drive. Attorneys sue. Find you one and let him/her do their thing. This breach of contract may result in the complete removal of this account from your credit history and put a few extra dollars in your pocket.

Seek an attorney, like ONTRACK has advised.

 

"They show the original one as closed and the new one as transferred to another division of mitsubishi with a NEW charge off date."
Is the new charge-off date more recent than the original one? Have you called the CRA showing that report and asked them when that TL will fall off?

 

tell them you will pay in full only if they delete all tl. If they refuse tell them you will pay nothing, this seems to work for me.

 

The problem with making another deal with them and paying more money, is that they didn't keep the last deal.

You settled and paid the debt, it should have showed as settled in full, yet they did not follow thru with their side, and they are still attempting collection of a balance you do not owe based on your settlement.

You already have an agreement you can choose to hold them to.

You now have the "opportunity" to toss that agreement out, pay them more money, and turn the reporting into a NEW "paid in full" collection account, instead of an OLD settled in full account. Assuming you can even trust them to do it. You may still have to try to hold them to a new agreement.

And if they failed to honor your original agreement, how did they treat your payment? As resetting the SOL, and continuing to accumulate interest? May open another can of worms.

I don't see that you would be any better off, probably worse, and if you have to hold them to an agreement, better it be the original one. Your $2000 might even be better spent on an attorney, even assuming you couldn't find one willing to take this on contingency, and assuming they didn't simply cave, as they probably would since you have your settlement letter (and presumably some proof of payment).