Changing your rating from R5 to R9. I would double check on this one. From my understanding R9 is a chargeoff notation so your report would read Paid in Settlement/Chargeoff. I don't think so. At the very least, if it is a settlement it should retain whatever rating the account had at the time that you paid it. I had to raise hell at Discover before they would change the rating to an R1. I will admit that they are easier to deal with than MBNA. As for disputing at the time of settlement, that may have had something to do with it..but who knows. They did send the update form to change the rating to an R1. I think that the agencies just refused to report Settled/R1, it is kind of oxymoronic....
Mel, I just spoke with them and they said it will be reported as an R9. Did you raise hell with Discover before or after you paid them? I really would like to freeze this at an R5. Are you sure that chargeoffs are reported as R9 and settled accounts are not? Like to get this resolved before I send them a check...
Mel, Actually they say it will be reported as R7...and the zero balance won't show for 60-90 days. Does this sound right to you?
Kiyi, That's what I would like too. And, in an ideal world we'd all get what we want. But, if I don't get this deal done, it is likely that I will have a judgement to deal with and that is much worse. Most CCs don't walk away from debtors owing 20K.
The 60-90 days to update seems consistent with what happened to me on Discover. Although I find it quite amazing that they can report you delinquent on a monthly basis but can't report that you paid your obligation for 3 months. Here are the ratings for transunion..just put an R in front.. Based on what you see below and MBNA's claim to report acurately, it should really stay an R5. Are they reaging your account if you do 0% for 24 months...Honestly if you are going to get reinstatement, that is the way to go.....If you settle your credit takes a major beating. The extra income at tax time could hurt you as well. If you can get MBNA to give you everything in writing... MOP is Current Manner of Payment 00 Not rated, too new to rate, or approved but not used 01 Pays as agreed 02 30-59 days past the due date 03 60-89 days past the due date 04 90-119 days past the due date 05 120 days or more past the due date 07 Paying or paid under Wage Earner Plan or similar arrangement 08 Repossession 8A Voluntary repossession 8D Legal repossession 8P Paying or paid account with MOP 08 8R Repossession; redeemed 09 Charged off to bad debt 9B Collection account 9P Paying or paid account with MOP 09 or 9B
Mel, They have given me everything in writing for a 40% settlement. If I took the 24 month, 0% deal, they will reage the account to show paid/current, but leave the 150-day late. They will not reopen my account. They also indicated that with my AMEX chargeoff they will probably not reopen the account once it's paid in full...What do you think? I am suppose to hand over a chack to Fed Ex on Thursday at this point. Now I'm wavering...
I was under the impression that "settled accounts" are marked as whatever the last late was EX: you are 60 days late on a $10K balance, you decide to pay $5K and call it even (of course by oking this thru the creditor). The creditor will keep it as 60 days late with the notation "account settled for less than balance" with a "closed by credit grantor" note.
Oh side note: If you decide to take the 40% deal, make sure you get it in writing that they will not sell the remaining balance to a collection agency.
Re: Settlements w/o Deletion KHM | 1373 posts since Oct 2001 64.12.107.162 | 05.21.2002 @ 19:49 Oh side note: If you decide to take the 40% deal, make sure you get it in writing that they will not sell the remaining balance to a collection agency. ============= Folks are really getting scamed on this deal
Is the 60-90 days Discover promised for changes to your CR (per the settlement agreement) - the average time one can expect from Discover and other major CC companies - or is the average wait shorter or longer - from people's experiences? Can anyone please direct me to examples of a properly worded settlement letter? Thanks.
(Bump) Does anyone know the average wait to get Discover and other cc companies to make deletions from a CR per a settlement agreement? 30-60-90 days? Does anyone know where I can find a successful Settlement Letter form to customize and send? Thanks
