I have been lurking for some time and I want to thank everyone who shares. Now for my issue: I sent a negotiation letter to First USA for 40% of $4,000. I requested they sign the agreement and mail it back. They did not do this, but rather stated over the phone when I called them that they would approve 50%. I asked for this in writing and was refused. They claimed when they received my payment they would mark it as settled with the bureaus. After 10 minutes of refusal I asked how long their offer was good for--as I do not want this to go to charge-off status, and they said June 1. I was also told I could pay 400 and bring it current. I think this would be better than settled at this point. Does anyone have any experience with First USA in this regard?
Settled looks as bad as charge-off to most lenders (and we think FICO models, though nobody knows for sure). Some mortgage lenders will not underwrite a mortgage until "settled" is brought to "paid in full" status. THe $400 to bring current may be a good deal - if they remove all late fees that you've probably run-up, as well as keep the interest rate below an ungodly number. I would talk to them and carefully work through those terms - remember you want to - remove all late fees - not pay "penalty interest rates" on the balance If they charge you with a 23.9% APR on a $3600 balance - the monthly interest payment would be $71. Any payment you make to them - unless you're going to pay them >$500 a month, it's probably a bad deal for you. In that case, you're probably better off trying to get a 60% settlement with a written agreement that they will "delete any negative information about this account" Good luck, mj
It would be marked as settled alright. SETTLED FOR LESS THAN FULL AMOUNT. Ask them if you bring it current will they remove the lates. Good luck. Gib
**DO NOT SETTLE WITH FUSA** They WILL report the balance as EARNED INCOME, and you will have to pay federal and state taxes on the difference between what you owe, and the settlement. They will not tell you this, even if you ask, but they do, TRUST ME, my fiancee' worked for them until 2 weeks ago, and that is SOP. (btw she HATED FUSA, so she told them to go get f*****, and took a job with Ameridebt)
Also, they have a program where you get ZERO interest (they don't like to give this, but it exsists) and once your account is current, they will waive all late fees, o/l fees, and reage to a R1 status, PUSH for this if anything!
My 2 pennies... Never nego with the person who answers the phone at any company.... ALWAYS ask to speak with a supervisor/manager who has the authority, otherwise you're not going to get anything but the standard corporate response which is in their best interest.
Are you positive about the reaging and R1 status? I spoke with a manager again today and they refused to delete the account from the bureaus, change late pay status reported, etc. I did finally get someone to mail me settlement terms in writing--though I do not want to do this. I am beginning to wonder if I should borrow the money from a friend and just pay it off and be done with it. The problem with this is that I want to get a VA mortgage this fall and I have read on the net that they often require a year with no lates.
Don't know about VA requirements, but most mortgage companies want all debts paid. They will not accept anyone with a write-off status...
