which is better?

[glu2706]

Is it better on your cr to settle an account that was charged off, or pay full amount also how do they report how it was paid? Do they show settled or just paid for both situations? thanks to anyone who can answer this for me

[Enigma]

How old is the account?

[glu2706]

It went 90 days late in oct/08, charged off in jan/09 I made a western union payment in feb/09, with the original creditor and recently rec'd a settlement offer from a ca, should I ignore the ca and make payment to the bank, or try to settle with the bank,would the bank be able to remove it from my cr if I could somehow pay it in full,their is a pending insurance investigation because the collision was somehow removed from the policy before the vehicle was totaled and it should have been covered, Thanks in advance for any insight you could offer !

[maxjlone]

I agree with you glu.I also think that their is a pending insurance investigation because the collision was somehow removed from the policy before the vehicle was totaled and it should have been covered.

[Gib]

I doubt there will be difference scorewise either way. It will report as Paid after charge off, or settled for less than full amount. The first option would probably look better on a manual review.

[glu2706]

The state insurance department's investigation determined that the collision coverage was wrongfully omitted, and the insurance co. was directed to re-instate the coverage for the time period in question and pay the total loss claim, I have recieved a disbursement check today,and hsbc bank has been paid in full as lien holder,they had previously charged off this account and had sent it to a ca who I initially contacted about a full payoff (they had been offering me a settlement previously) I then sent a letter to hsbc explaining the entire situation and requested they withdraw the account from collections and send me a payoff letter,and they did! (the ca was very befuddled) I also requested after the bank recieves payment in full (they have) please delete the charge off as this occured through no fault of my own under these extenuating circumstances, My question is: should I wait and see if they comply with my original letter or send another letter since they have just been paid ? Thanks to everyone for their great help and input on this post !!!