Another Credit Report Victory/Question?
Date: Sat, 06/03/2006 - 14:00
I just got a creditor (Rickenbaker Collections) to accept a payment of $600 for a $1200 debt to close it out.
They offered me $900 and said that if I paid $900, they would not only erase the debt but contact the credit bureaus and remove them from my reports. (and they put it in writing and faxed it to me in writing)
I couldn't afford the $900 hit so I told them my offer was $600, they said for $600 they would close it but not take it off the reports. I said "I'll take it".
Its going to be on the report technically for another 2 years worse case scenario-or less if I can dispute it later which I will probably do.
I figured it was the best move at the time....
Thoughts anyone??
if you only want the satisfaction and piece of mind in knowing t
if you only want the satisfaction and piece of mind in knowing that you addressed the debt and taken care of it, then the agreement you have proposed and they accepted is fine. You will still have the negative marks on your credit report, but if your ok with that, then thats all that matters. I would however insist on a letter which clearly states that the debt has been settled and any difference has been forgiven and is not subject to further collection activities (funny thing s sometimes happen with these things). Also since the amount is $600 to be forgiven (the thresholding where reporting is required is $650), you may receive a 1099C in the mail meaning you will have to claim that $600 that was forgiven as income and pay federal and state income tax on that amount.
