settled debt and the creditor
Date: Tue, 03/30/2010 - 11:05
Is it true that the creditor is REQUIRED by law to report a "settled account" as such and NOT as "agreed as paid"? I am forced to negotiate my debt to a settled status and am requesting that the creditors reflect it to the bureaus as "agreed as paid" but they are leaning on the law requiring that they cannot report as such. I am willing to chew up retirement to do the best I can and was concerned that "settled as agreed" was basically a signal to creditors that I am still not credit worthy hence why even bother paying it off with the only savings for my future I do have? Thanks for any thoughts.
As far as the LAW I don't know, but I do know that the contract
As far as the LAW I don't know, but I do know that the contract they have with each of the credit bureaus states they have to report accurate information. If it is found they are reporting inaccurate information then their ability to report to the bureaus and their ability to pull credit reports can be terminated.
Every creditor that looks at credit reports to determine credit worthiness is depending on the information being accurate so they can make the best decisions on whether or not to issue credit.
That being said you may be able to get a better trade line, for me it doesn't matter what they put on there - it's still better than a bankruptcy.
