V8 Beast Posted July 1, 2010 Report Share Posted July 1, 2010 Just curious as to how settling a debt impacts your credit... I still owe gmac $1000 for the overage miles on my envoy. I forgot to send a payment (fell inbetween the seat of my car I forgot about it) and the guy called and offered to take $900 if I payed it all off. Other than this I have paid gmac on time for the last 8 years. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted July 1, 2010 Report Share Posted July 1, 2010 Pay them 100% of what is owed, if they send you, in writing, documentation that all of this will be fully removed from your credit report. Otherwise, I'd tell them to piss off, as that settlement will look pretty much as bad as not paying it at all. But how the heck does it go from forgetting one payment to going to collections? I am sure they sent a 2nd and likely 3rd bill / notice about what you owe them. Quote Link to comment Share on other sites More sharing options...
87GT Posted July 1, 2010 Report Share Posted July 1, 2010 A settlement will negatively effect your credit score. It won't be as bad as if you never pay period and collections gets involved. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted July 1, 2010 Report Share Posted July 1, 2010 Just curious as to how settling a debt impacts your credit... I still owe gmac $1000 for the overage miles on my envoy. I forgot to send a payment (fell inbetween the seat of my car I forgot about it) and the guy called and offered to take $900 if I payed it all off. Other than this I have paid gmac on time for the last 8 years. So did you not get called between writing the check to pay it and now? One would think that before they called and asked you for a settlement, they would have either billed you or contacted you prior to the situation reaching this point. Quote Link to comment Share on other sites More sharing options...
nurkvinny Posted July 1, 2010 Report Share Posted July 1, 2010 Pay the full amount. Each creditor will weigh it differently. None of it is worth not paying $100. Quote Link to comment Share on other sites More sharing options...
Mr. Jones Posted July 1, 2010 Report Share Posted July 1, 2010 You'll never be able to get a loan AGAIN... No, not really. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted July 2, 2010 Author Report Share Posted July 2, 2010 Lease overage is sent to their collection department or what ever you call it. Customer service only handles active accounts. The second they got the truck back regular customer service said they could no longer help me. Just looked at my paperwork... its called their debt settlement department. That's how one payment turns into a settlement I bet they get fired if they don't get so much money collected per month. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted July 2, 2010 Report Share Posted July 2, 2010 Call and talk to someone about their credit reporting policies. All companies are different. In most circumstances a settlement of anything less than the amount owed would be reported and that is bad. For sure not worth $100. Quote Link to comment Share on other sites More sharing options...
Bam Posted July 2, 2010 Report Share Posted July 2, 2010 Sounds like you screwed up. If you didn't want this on your credit report you should've had a check for the $1000 in hand when you dropped off the envoy. Either way, if its on your credit report as in collections or not, a settlement is much worse than paying in full, as your report will notate which happened and future lenders will take that into consideration. I'd call first thing tomorrow and see if they have actually reported it to the credit bureaus yet or not, either way PAY IN FULL with documentation/receipt. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted July 2, 2010 Author Report Share Posted July 2, 2010 Sounds like you screwed up. If you didn't want this on your credit report you should've had a check for the $1000 in hand when you dropped off the envoy. Either way, if its on your credit report as in collections or not, a settlement is much worse than paying in full, as your report will notate which happened and future lenders will take that into consideration. I'd call first thing tomorrow and see if they have actually reported it to the credit bureaus yet or not, either way PAY IN FULL with documentation/receipt. No need to call about that, its not negatively impacting my credit. After I set up the payment plan it showed up as a seperate payment on my report and is showing up to date through May. Hopefully they report in 60 day increments and June wont show up... but if it does its my fault. Quote Link to comment Share on other sites More sharing options...
Bam Posted July 2, 2010 Report Share Posted July 2, 2010 Oh, ok, you didn't mention the payment plan. Hmm, well hopefully they have a grace period like you said and you can just pay a late payment and be done with it. But I do know that most times if they offer you a payment plan initially and you screw it up/fail to pay on time, they will demand the balance in full immediately, and no longer offer to accept payments. Good luck. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted July 2, 2010 Report Share Posted July 2, 2010 i deal with this daily. people call and ask me for settlements daily. if its a matter of saving a couple hundred bucks, just pay it in full. now if someone calls and has a $5000 balance and wants to settle for $3000, i'll take it 9 times out of 10 (the 1x is if theyre being a dick and give me that "im entitled to this" attitude)...if you're saving a decent amount, its worth it to some people to have the extra cash if the credit is trashed already, or close to it. $200 isnt a decent amount and heres an article that came out when FICO gave examples of credit score impacts. i keep this in my work email to reference all the time http://finance.yahoo.com/banking-budgeting/article/108239/fICO-reveals-how-common-credit-mistakes-affect-scores?mod=bb-creditreports http://us.news2.yimg.com/us.yimg.com/p/fi/26/05/27.jpg i agree though, if its only 1-2 months past due, you might be able to negotiate to pay it off if they remove the 30 or 30/60 day past due marks. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted July 2, 2010 Author Report Share Posted July 2, 2010 though, if its only 1-2 months past due, you might be able to negotiate to pay it off if they remove the 30 or 30/60 day past due marks. Next time I'll pm you. I couldnt remember who it was that did this stuff. Damn 105 points!! Thanks! I highly doubt that they will not report it. I asked here because the guy over the phone seemed a little shady. At the end he said if I payed it and got a bill in the mail to ignor it. When I call him back tomorrow I'm just going to pay the past due and keep with the payment plan. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted July 2, 2010 Author Report Share Posted July 2, 2010 Oh, ok, you didn't mention the payment plan. Hmm, well hopefully they have a grace period like you said and you can just pay a late payment and be done with it. But I do know that most times if they offer you a payment plan initially and you screw it up/fail to pay on time, they will demand the balance in full immediately, and no longer offer to accept payments. Good luck. They can, they said that when I first set it up. If he does try to take away the arrangement money would be tight for a month or two but I would have to bite the bullet. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted July 2, 2010 Report Share Posted July 2, 2010 if he trys to take it away, ask for a sup. to be honest, we do that when you kind of fuck up on your plan. like you thought, we have goals/quotas to hit, and pretty much every collections job has incentives. less $ = less incentive. i told a someone today his payment plan was off because he didnt pay on the 25th like he said he would, and then tried to give me some BS that he talked to someone 3 days ago and said he didnt need to make a payment. there was some other circumstances that he should not have been kept on a payment plan, but a sup let him do it. it infuriated me...now im just waiting on him to bounce his 3rd check so i can go up to the sup and go "told you so". Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted July 2, 2010 Author Report Share Posted July 2, 2010 if he trys to take it away, ask for a sup. to be honest, we do that when you kind of fuck up on your plan. like you thought, we have goals/quotas to hit, and pretty much every collections job has incentives. less $ = less incentive. i told a someone today his payment plan was off because he didnt pay on the 25th like he said he would, and then tried to give me some BS that he talked to someone 3 days ago and said he didnt need to make a payment. there was some other circumstances that he should not have been kept on a payment plan, but a sup let him do it. it infuriated me...now im just waiting on him to bounce his 3rd check so i can go up to the sup and go "told you so". I only have 3 payments left so hopefully he doesnt, but I'll check with a sup. Thanks for the heads up. Quote Link to comment Share on other sites More sharing options...
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