Help with MBNA & DISCOVER

Hello, I have accounts with both MBNA & DISCOVER. These accounts have been up and down for the past 2 years. They are in the process of being charged off. I contacted both yesterday and they were willing to settle but for PAID balance less than full.

Do I go for it or not? If not, what will happen? They are willing to give me good settlement rates but after looking at information online, I am hesitant to make the settlement yet I have never been sued before nor do I have anything for them to take other than mutual funds. My money is not right at this time but I was willing to borrow from family to settle these debts.

How do I get them to show on my credit report PAID AS AGREED?

Please give me some advise.

Thanks

I nor anyone else can really tell you what to do as to pay or not. But i do know this and i am sure everyone will agree, is if you are going to settle make sure and i stress this make sure you get it in writing that they are going to report you account's as paid as agreed and nothng less. You have to have that in writing. I personal would send them no money until i have that paper in my hand stating such.

One other major suggestion, if you can get them to sign a letter stating that the account will be updated to "paid in full" or "paid as agreed", make sure you also include that this is full an final "settlement for this account" and that the remaining balance cannot be sold to another CA for collection on the unpaid or leftover balance in the future.

Companies are great for making settlement offers and "selling off" the balances/leftover to CA's. If you don't have it in writing, the "remainder" is still essentially owed.

Thanks for responding. I called them today and the rep. made it seem like she had forgotten me and I'd just spoken with her yesterday. Now just yesterday she said she could settle for a particular amount but when I called today she said she would need to get approval from her manager. I even told her that payment would arrive no later than Monday evening.

I asked if they would sign a letter I had for credit purposes..WOW SHE WENT OFF!!! She raised her voice stating that they can only do what the law says, they have to report the truth blah blah blah... After she calmed down, I was asked to fax the letter so she could see what was on it.

Would it be wise of me to fax anything before they agree to my credit terms? I mean can they use what I fax them against me if we do not reach a settlement?

They keep asking for my phone number...Of course I say its the same number you have on file. I never answer my phone, so its hard for them to contact me.

I tell you...straight after hanging up the phone rang it was a male not sounding very happy. I just knew it was them calling to catch me off guard. I did not answer as I did not want any more bull from them. Why do they play games????

1) There is no law that requires them to report ANYTHING to the bureaus.

It would be illegal if they reported as "paid as agreed" -- well, maybe not. Now that I think about it, if you agree to pay them by Monday and you do, I guess you did pay as agreed.

I'd play it safe and request deletion, which is perfectly legit, or a confidential settlement.

2) I don't know how a settlement offer could be held against you.

3) If you put a confidentiality clause in the settlement they can't discuss the settlement with the bureaus - therefor the bureaus should delete the derogs or the entire account when you dispute the account.

Hello Christine & Everybody, can you please elaborate more on the below items. I am so lucky to have found this forum....thank goodness I did.

"1) It would be illegal if they reported as "paid as agreed" -- well, maybe not. Now that I think about it, if you agree to pay them by Monday and you do, I guess you did pay as agreed."

Does that mean I do not request them to notate "paid as agreed"? What would I ask for? After reading others situations I thought that was what to ask for.


"2) I don't know how a settlement offer could be held against you."

I thought that if they reported settled paid less than full it would be bad for my credit ratings.


"3) If you put a confidentiality clause in the settlement they can't discuss the settlement with the bureaus - therefor the bureaus should delete the derogs or the entire account when you dispute the account."

Hmmm that sounds like a plan...I've never heard that before. Can you explain more on this please? Do you know where I can get a sample letter with confidentiality clause in it for a guide. I am new at this and am quite clueless.

Would it be wise of me to fax anything before they agree to my credit terms? I mean can they use what I fax them against me if we do not reach a settlement?

I wanna thank you all for responding to my troubles. I want to finish with all this credit stuff but I also want to have a good enuff credit report that would allow for me to buy my first house in approx. 3 yrs.

I hate this happened because I have been miserable with owing these companies and not able to pay. The bad thing about it is when I tried speaking with them to assist me before everything got out of hand, they said that I was current and that they only provided assistance if you are behind in payments. Now that is crazy...I tried!

Keep one thing in mind. Discover is NASTY. They will sue you in a second and could care less if they have to fly around the word 10 times to do it. They will spend 10k in hotel and plane tickets to sue your for 1k.