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Discover account charged off. Should I continue paying collection agency (Zwicker & Assoc)?


Reckless84
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The last post in this topic was posted 3974 days ago. 

 

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Hello everyone. A little over a year ago I stopped paying on my Discover account, which had a balance of over $9,000. I was working with a credit mediation company which Discover did not work with, so they charged off my balance without notice. A few months later I got a call from Zwicker & Associates, advising that they are collecting on my Discover debt that was charged off, and advising that I owe the $9,xxx.xx that was charged off. I did some research on Zwicker and found that they were sue-happy, and that several people that were sued by Zwicker were forced to go into bankruptcy. That was the last thing I needed, so my parents offered to loan me $5,000 so I could work out payment arrangements with Zwicker.

I called Zwicker back and tried to negotiate a lower balance, before offering them the $5,000. They advised that they could offer me a lower balance of $6,xxx.xx (I forget the exact number), but told me if I agreed on that lesser balance that it would reflect negatively on my credit report because they told me it would show that I did not pay the balance in full. So I gave them the $5,000 and worked out monthly payments with them for roughly 12 months to pay off the rest of the balance in full.

 

I recently started using USAA credit monitoring service, and became curious as to how the debt is showing on my credit report. There is currently nothing from Zwicker showing, only Discover. Discover shows up as a charge-off:

 

 

33b039c.jpg

 

Now, since I only just started using this monitoring service, I'm not sure if that $988.00 balance has been going down each month with my payments. I tried calling Zwicker this morning too see my balance with them was the $988.00 that I am seeing here on my Discover account, but Zwicker is apparently closed on Saturday's.

So now to my question. Since I have, at this point, exceeded the negotiated balance I initially discussed with Zwicker, is it doing me any good to continue paying them the remainder of my balance if we can re-negotiate the lower balance again? Or am I safe to try to negotiate what I've given them so far as my final balance, and walk away if they agree to it? Is there any true benefit to paying the rest of the balance in full??

 

The reason I ask is because my next goal in life is to get my credit score and history back up and in order, so I can buy my first house in a year or so. I have some other debts that will be paid off in a few more months that have been impacting my credit scores, and I am hoping that a quick re-score will help out with things. But if I negotiate on a lower balance than whatever is left on this charge-off, will that reflect whatsoever on my ability to get approved for a mortgage, or will it impact my credit score/history negatively in any way?

Additionally, once paid off (either at the full amount or at a lower, negotiated amount)... is there any way to remove this from my credit report? Discover told me they are not allowed to remove it (even though I told them it is only optional for them to have posted it in the first place, and they can remove it at their own will without any penalties to them), and they won't even discuss it further with me since the debt is no longer in their hands. Any suggestions?? Thank you!!

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I would complete your negotiated settlement, If you don't they could potentially sue you for the full amount, Minus what you have paid in already.

 

You could send GW letter to discover

 

Or use one of the many methods of dispute and hope to get lucky.

 

But its a fresh debt, and Legit... It will be hard to remove.

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do you have the settlement agreement from Zwicker in Writing?

 

file a complaint with the CFPB against Zwicker - they are considered a debt collector pursuant to the FDCPA.

 

I think he hasnt completed the payment plan yet... So they are reporting the balance due from the agreement?

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Thanks for the replies everyone!

 

 

I would complete your negotiated settlement, If you don't they could potentially sue you for the full amount, Minus what you have paid in already.

 

You could send GW letter to discover

 

Or use one of the many methods of dispute and hope to get lucky.

 

But its a fresh debt, and Legit... It will be hard to remove.

 

Yeah I definitely didn't mean that I would just simply stop making payments with Zwicker-- but rather see if they are willing to renegotiate and "call it even". I will definitely try writing a letter to Discover once this is said and done. Thanks!

 

 

do you have the settlement agreement from Zwicker in Writing?

 

file a complaint with the CFPB against Zwicker - they are considered a debt collector pursuant to the FDCPA.

 

Nothing at all in writing from Zwicker. Sorry, I'm not familiar with all of these credit-related terms... why would I file a complaint, and what would it do for me? Thanks!

 

 

 

do you have the settlement agreement from Zwicker in Writing?

 

file a complaint with the CFPB against Zwicker - they are considered a debt collector pursuant to the FDCPA.

 

I think he hasnt completed the payment plan yet... So they are reporting the balance due from the agreement?

 

That would be correct, I am still paying toward the payment plan for a few more months. It does appear that the $988 balance currently listed by Discover on my credit report is the balance that I have remaining with Zwicker. I should be able to confirm that when I call Zwicker this week. Thank you!

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