I had an old (3yrs) $100 charge with Burdines (department store) that got run up to $350 with late fees and interest. Wanting to get my house refinanced I decided to take care of this. When I contacted Burdines they told me I had to deal with a CA. I called the CA and the person told me I could settle for $150 or if I paid the full amount my account w/ OC would be returned to current status and reopened. I was going to settle for $150 and they expect me to mail a check by the 5th. Then I started reading about fixing credit, got my TransUnion report on-line (the other 2 are coming by mail.) The report shows my Burdines acct. as closed, late 120 days. There is no listing by the CA. Finally, I came across this site - thank God!!! I don't know if I want to do a validation and possibly tick off the CA. But from what I've read, I should probably get something in writing from them before paying. If I pay the $150 there is no way to guarantee the OC will not file a derogatory closing status. I also hate the thought of paying 250% in late fees (perhaps this will be my pennance) but if my account becomes current and open then it would be a good thing because it would guarantee no derogatory remark. Help, how should I proceed.
I had this happen to me about 2 years ago with Lazarus. I had just had my second child and wasn't up to par. Basically they were going to restore my credit line and remove all derogatory information from my credit report if I paid in full. Or I could settle for 50% and get paid charge off on my credit. I did the 50% and regret it to this day. I could have restored this account and had a good tradeline. I like Lazarus! Are they willing to reopen your account back to its original status? If so, I would consider it a second chance. Is the CA on your credit report? If so, if you pay in full are they going to remove their derrogatory info from your credit report? Call the OC and get all the info in writing!
"Are they willing to reopen your account back to its original status? If so, I would consider it a second chance. Is the CA on your credit report? If so, if you pay in full are they going to remove their derrogatory info from your credit report? " That's what they claim although everyone here seems to be of the opinion that anything a CA tells you is just a lie to get money, so that has me concerned. No, the CA doesn't have any info on my TU report. I don't know about the other 2 yet, should have them in 2 weeks.
Just a warning. A couple years ago I dealt with a CA who promised they would not put anything on my credit reprot if I paid in full with penalties. Up to that point, they had not reported anything. After I paid, they reported it as an unpaid collection. This was NCO. The bottom line is what the others here say - never believe what they tell you. The fact that they have reported nothing yet is meaningless. Once they get your money, they will report it and it will be negative. Having said that - if, and only if, you can get it in writing, then I would be inclined to pay off the whole thing in return for no negative being reported, and a positive tradeline. But, that is only my opinion.
