Hi, I have an auto loan that I co-signed with my brother some years back. The loan is currently in collection but I have successful negotiated a favorable settlement amount with the collection agency. I hope you can provide two answers to these two questions before I take the settlement after asking the collection agency for a 'paid-in-full' agreement notice.
1. Does settling the debt reflect on my brother's credit report as well as mine?
2. Since the loan, which shows up as a derogatory item on my credit report, will be charged off in 2016, should I not pay the settlement and wait for the drop-off to occur? Does paying the settlement mean that the derogatory item will remain on my report for seven years starting now?
Thanks so much for your advice.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.