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I have a debt that I was willing to pay the full amount as discussed with the original creditor Now 5 days later, I receive a letter authorizing a lessor amount settlement stating it will be shown as paid in full. Should I do this and if so, should I request anything from the creditor? If I do accept this settlement, will it harm my credit further than now?
I am not clear on your question. I questioning whether to pay a collection agency or the original creditor?
lessor settlement payment
Hi dgstyles,
I don't think that if the creditors report your payment as paid in full, it will affect your credit report . However you should make sure that this settlement is done through a written contract stating that the creditors are going to report your payment as paid in full. Otherwise if your report will reflect as settled, it may damage your credit score.
You should retain all the receipts of the written contract, in case the creditors later deny that they have said nothing regarding reporting your payment as paid in full.
Hope this will help you.
Regards,
Aaron
Payment in full is not better than a settlement when it comes to your credit score. Creditors will imply this but unless they give you a pay for delete, it is a lie.