Settlement letter from CA

you would need to talk to them about it first before paying to see if they would agree to report paid as agreed or paid. If it was a charge off, then you would need to ask them about reporting it as a 'paid charge off'. In this case here, some would report it as 'settled' which you don't want that if you can avoid it. Its not as nice as a 'paid' or even a 'paid charge off'. So I would tell you to check with them first to see how they would report it before paying it. shirley

I also recently read that if the original creditor didn't 'approve' for them to accept a settlement, then you would still end up having to pay the difference. so you would also need to make sure that the original creditor first approved and agreed for the settlement offer. hope this has helped.

Shirley is right. Everything should be in writing first. If you go with the reduced amount, make sure they write it off.

You have mentioned that it was charged-off in 2005. Chances are they will update it as paid charged-off. Don't lose your heart, paid charged-off is better than charged-off.

If you go with the reduced amount, make sure the remaining debt is written off. Otherwise they can sell it to some other agency. Keep us posted.

Thanks Stan & Shirley! the leter states that HSBC has authorized them to settle. Does that mean they will write it off? That is also the reason i want to write paid in full, if they cash it it's a done deal. In my past experiance as a collectorwe were told never to cash a check with paid in full on it unless it was in fact paid in full. Put the bats down!! I only lasted 6mos. I had to quit couldn't be the bitty they wanted me to be. Thanks for your time Rach

Rach,

Discharged debt is considered as debtor's income hence you have to pay IRS for this. Perhaps the CA will ask you to fill out 1099C form. You can consult a tax attorney to know it in detail.

If you want to avoid the discharge, you have to speak to them. Chances are they will claim more than just half of the debt. Keep us updated.