Bank of America and I.C. Systems

Hi everyone. I'm hoping I haven't made a mistake here and am just trying to find out how to minimize the damage done to my credit report.

I had a checking account with Bank of America that became overdrawn at the end of April because I allowed my now ex-boyfriend to make purchases using my debit card under the assumption he would not spend more than what was in the account at the time. By the time I realized it was in the negative, the charges had amounted to $531.76. I know this happened as a result of my own stupidity, but believe me, I've learned from the mistake. I lost my job not long after this, so I couldn't make any deposits. He has refused to make any payment toward this account. I did try to communicate with Bank of America a few times in the past 3-4 months about making payment arrangements, but without any income at that time, there wasn't much I could do. Fortunately, I just started working again and want to take care of the debt, because unlike my ex, I take responsibility for the decisions I make. I will admit that my goal is to settle this debt for possibly less than the full amount. Maybe you will be able to help me with exactly how to go about that.

I received a statement from Bank of America for the period 8/13 through 9/11 that lists it as a Force Closed Account and shows that the amount of $531.76 was charged off on 8/28. I then checked to see if anything had been reported to ChexSystems and found they reported me on 8/31 for "Account Abuse".

Well today I came home and found a letter in the mail from I.C. Systems telling me the delinquent account has been turned over to them. It shows the "Principal" amount as the original $531.76 and then under that "Additional Charges Owed" of $111.66 making the balance due $643.42. The following is included in the letter:

"The balance shown above is the amount due as of the date of this letter (October 14, 2009). This amount may change due to interest or other charges that may be added to the account after the date of this letter.

You are hereby notified that I.C. System will forward the account information to the national credit reporting agencies if you fail to fulfill the terms of your credit obligations. Of course, you will have the right then, as you do now, to inspect your credit file in accordance with federal law. I.C. System will not submit the account information to the national credit reporting agencies until the expiration of the time period described in the notice below."

And the only thing mentioned about a date is a time period of 30 days in a notice at the bottom. So I called I.C. Systems and told them who I was and gave them my account number. I told the man on the phone I wanted to pay this debt, but I would need to set up a payment plan. I asked him if they would still submit the information to the credit bureaus if I started making payments. He said they report to the credit bureaus "every Saturday" and that the account would still appear on my credit report but wouldn't show as "Paid" until the debt was paid in full. I told him I may be able to make a payment of $150 by the end of the month and he said I would need to call back before the end of the week to discuss making a payment. Did I mess up here somehow?

Unfortunately I already checked all three of my credit reports for free this year, so I would need to pay to see them again, to see if it's ALREADY on my credit reports. After the debt is paid, I don't want ANYTHING to remain on my credit report. Would I be able to negotiate a Pay For Delete with them? Do I need to contact Bank of America?

Is there any chance of me being able to settle for less than this $643.42, and would that even be possible if I had to make payments? How do I negotiate with them to keep this off (or eventually take it off) my credit report? What steps do I need to take? Are there any letters I can mail? Do I need to request anything in writing?

I'm kind of worried, because I don't want this to remain on my report for 7 years, even if it shows the account was paid in full. I want it completely removed. Any response to my questions will be GREATLY appreciated! Thank you!