Jul/10
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Is it OK to pay a settlement amount on credit card debt?
1 Comment · Posted by sanbank in Credit Card Debt Settlement
I am paying off my cards which are over 5 yrs old, and they’re giving me settlement amnts to pay them off. Most of the balance is late fees, my credit is slowly going up. Am I going to have problems in the future getting credit if they ve seen that even though I paid all my debt, I chose to make a stlmnt amount to close it? Anyone in similar boat?
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echo · July 16, 2010 at 11:41 pm
If you don’t have anything in writing showing that they will either delete the negatives or report as closed, paid as agreed – you may end up with it showing as a paid charge off.
You should have also sent them a debt validation letter before agreeing to pay the accounts. That way you would be sure that they have not inflated the amounts. (which they may have done).
I would suggest that before you send your next payment, to at least send them a pay for delete letter.
Request that after they are paid they will:
Delete anything they have placed on your reports.
They will not sell the debt or the remainder of the debt.
They will cease all collections on the debt.
If you do not have anything in writing, you may find that they will report negatively, sell the remainder of the debt etc. So, protect yourself.
If you need any more info about this type of letter or debt validation letters, do some reading in the forums on the site that I have linked.