Creditor Agrees to Settlement Did Not Report Settlement on Credit Report

[abagarner]

My question involves collection proceedings in the State of: PA
I had a truck repo'd in 2007 (6 yrs ago) and talked to the collection agency (Portfolio Recovery) in March 2012. We agreed on a settlement amount and I requested they send me a letter stating the settlement amount and that it would then be paid in full. They sent me the settlement letter on 3-22-12. The letter stated: Payment in the amount of $xxxxx is due by 3/20/2012.
Should you miss any of the payments described herein, this payment plan may become null and void.

Please note... the letter said it had to be paid in full by 3-20-12, but they did not even send the letter until 3-22-12!! I emailed them 2x requesting another letter be sent with a corrected date, because per the letter, even if i paid it on 3-22, it was null and void because due to the letter it was already 2 days late!
In April, they reported the repo, AGAIN to credit... absolutely killing my credit score. We were about to purchase a house, but this has demolished my credit and we cannot get a loan or mortgage.
I don't know what to do or where to turn... at this point I am angry, because prior to trying to settle this account, I was only 10 pts away from a higher score that would have helped with our mortgage.. but after april, my score is down at least 50 pts. How do i get this taken care of? please, if anyone can offer help, email me directly. We are frustrated and don't know where to turn. aba.garner@gmail.com thank you!!

[jk]

Not sure what the problem is. They are not required to accept anything less than payment in full (of the original debt) so they get to set the rules if you want to pay anything less than payment in full. Unless there is payment in full, they can continue to report the debt. It will fall of your report about 7 -7 1/2 years after the date of delinquency.

other than that, not sure what you are looking for. You cannot force them to do anything.


btw: you are the debtor. They are the creditor. Your title appears to suggest the opposite.

[abagarner]

I guess I just expected them to do what they said they would do.. they agreed to the settlement, verbally and in writing.

[df04527]

PR are horrible to deal with. Continue writing them both email and regular mail. You should also call them and negotiate the settlement amount again and INCLUDE they will, in turn, delete it from your credit report. If you want a mortgage badly enough you will keep calling, writing and emailing until they respond. They will remove it but it could take awhile. Wait to persue a mtg again until it is gone.

[Mr. Knowitall]

Why do you believe that they will remove accurate information from a debtor's credit report? If you mean, should the debtor confirm that they are still willing to settle, the pay the settlement in full consistent with the terms of the written agreement, assuming they reported the debt they should update or correct whatever it is that they reported such that it is accurate.

Although the original post describes an agreement, it does not indicate that any payment was actually made pursuant to the agreement.

[df04527]

They usually will remove it when they recieve a full payment if you ask. On a settlement, not so sure but i always recommend trying. Have seen these big collector outfits do it over and over again but again mainly for full payment. Nothing lost by trying.

OP's settlement letter arrived but was incorrect and not having any luck getting it revised. I say start all over again with them then. Believe me, they want the money and if he's lucky he may also get them to delete it. Cannot hurt to ask.