Just got off the phone with an MBNA collections rep. I owe 18K. CR shows 120 days late. If they offer me a settlement, they say by federal law they can only report it as Paid/Settled. Huh??? So, the deal would be 70% settlement, Paid/Settled status and 120 days late. Doesn't that put my FICO in the toilet for 7 years? Should I take the deal or holdout for a better tradeline?
yah they'll probably change it to a charge off (9) and say paid settled. Which means a big baddie on your report for 7 more years. might try another angle?
What do you mean they'll change it to a charge off? Internally? They already said it would be reported as Paid Settled. They also offered me 0% interest for two years if I pay it up to date now...Is that a better angle?
As I told someone else, if it were me and I had the money then I would settle. Anything is better than dealing with it later on in life. I remember reading a post today where a $500 debt turned into $17000 over time. It seems to be better to pay now and deal with it. Besides if you want a mortgage it can be explained and possibly not looked at. Of course it will hurt your scores, but as times goes on that will change.
Better watch out they dont send you a 1099-misc, they will report the settled amount as INCOME for you, and you will OWE federal and state taxes, my fiancee' works for FUSA, and they do it ALL THE TIME, and DO NOT notify the consumer...until tax time comes, then you're screwed! Arthur
Susanna, I feel for you. That is a really rough spot to be in. I can tell you that MBNA is relentless when it comes to their reporting after the fact. I filed a CH13 2 years ago. MBNA refuses to budge on the error in their reporting. They basically said "sue us." I just may, too!
If your account is 160 days past due, you are only 20 days away from your account being written off as a bad debt and sold to a Collection Company.. a couple of Questions? 1. How is the rest of your Credit? Is the MBNA account the only account that you are behind on? 2. I do not know If you can do this, but If you can pay the past due amount on your Acct and bring it up to date.. 24 months of 0% interest, should enable you to bring the balance down significantly.. This will avoid having A long lasting Charge Off, ect on your Credit report.. If you can not do this. You may want to take them up on the Settlement Offer.. Tell them that you will be able to pay a 40% settlement.. If your account is 180 days past due.. they will probaly accept it And it is true, if you do settle, You will get a 1099 for the amount that was written off as Uncollectable.. and most likely will have to claim it on your income tax at years end.. Hope this helps.. Wish you luck RJ
They are lying. There is no requirement to report it at all. They don't have to make any notations on your account. Dancer
24 months of 0% interest ------------------------------------------------------------------------------ And MBNA won't give me lower than 11.99%... But effective today...they are MAKING 11.99% on $0.00...
Rubyjean, Actually, MBNA offered me the 24 months o% interest deal, or 60% with "settled" reported to credit bureau and either 120 or 150 day late notation. I spoke to an MBNA VP late yesterday and she told me they would send another offer next week. She wouldn't budge on the reporting issue -- said it's MBNA policy to report the "truth" about the account. So, if you could afford to settle, would you do it with all this negative info being reported? I don't know what other choice I have...If they offer 40% maybe it's worth it. We have little money -- my husband has been out of work for 18 months and I for 8 months. We could easil;y have gone bankrupt -- many people advised us to do so, but we have been trying to pay what we can and all we get is a rough time from these credit card companies. MBNA has been the most difficult to deal with. Also, I do have a charge-off with AMEX that I haven't dealt with yet. That as a result of a client filing bankruptcy owing me 20K -- the AMEX is for 10K. I appreciate your advice....Thanks.
