Pull a copy of your credit report and check the status of this account. Your account should get listed as "Paid as settled" and the account should show zero balance. However, your account may show zero balance after they send you the "zero balance letter". Can you tell me whether or not you had sent a "Pay for delete" (PFD) letter along with the settlement agreement? With the PFD all the negatives on the account gets removed.
If the creditor or collection agency fails to update your account, use these letters and your payment proof to update the account status and balance. Send a certified dispute letter to the credit bureaus, attaching the documents. After some days, again check the account status on your credit report.
Usually a pay for delete is not possible unless you offered full payment.
Also look out that you might receive a 1099-C form, this means that you would have to pay taxes on the money you saved in the settlement. In your case this will be done, the rules are if the consumer saves more than $600, and you definitely did that. _________________ Credit Cards Credit Reporting Information Credit Repair Info
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Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.