My charged-off account is with American Express; I owe $1,074 and can pay it in full. I have received letters from a CA willing to settle for $700. My Credit report lists only Amex. I was planning to reopen the account to replace the bad credit by paying in full. Would it report the same if I just settle with the CA for $700 and find an alternative source of credit (like Old Orchard). I spoke with Amex and inquired about any good will policy that could be implemented with payment in full – they referred me to their credit department (which I haven’t contacted yet). Since this will fall off in 2009, I want to avoid any re-dating by Amex, but I would also like to take care of my obligations.
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It would be better to do business with amex
they will blackball you forever if you do not pay them no matter what your report says
and
you can get new good credit with them.
bypass the ca, but ask amex about the ca and if you pay will the ca go away
get something in writing, on business letter head before you pay
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Tuesday, August 26, 2008
Should I pay American Express or the collection CA
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2 comments:
You first need to find out who owns the debt. What many people don't know, especially with an account that was charged off that long ago, is that debt is sold. Some creditors will keep the debt, but hire a collection agency to collect on their behalf, while others will sell the debt and take it off their books. If Amex has sold the debt, do not pay Amex. Since the debt has been sold, they are under no obligation to repurchase the debt from the secondary collection market. Also, realize that Amex will report the amount you did not pay in your settlement to the credit reporting agencies. If you pay it now, you'll do some damage to your credit as the delinquency will "appear" to have occurred recently, however, FCRA states that the running period for reporting purpose is 7 years and 180 days from the original delinquency that caused the account to become charged off. So, whether you pay the account or not, it will still be removed in 2009 (assuming that's when the allowable reporting period ends). And in case you're wondering, yes I work for a credit reporting agency.
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