debt settlement letter

I received a settlement letter for a debt from Bank of America?

I previously banked with Bank of america. I had two checking accounts and one savings account. One of my check cards was stolen, so I called to report it, and the woman on the phone told me I could use the other check card, as all my cards were linked. I did, and ended up getting overdraft fees of more than $200. I paid $100 of it, then told them that’s all they were getting. They closed my account and sent the debt to ltd financial services. They want to settle with me. They took my debt from 148.69 down to 111.52.
If I settle with them, does this still show up on my credit report? Does it do me any good at all whatsoever??
Thanks for the help.

You want “Paid in Full” on your credit report for this tiny amount of debt. It’s not worth saving $30-something dollars to have a “settled” notation on your credit report.

- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be settled/paid in full upon receipt of this amount from you. Keep the letter in a safe place. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you…or they will resell your account to another collection agency months/years later that will start the collection process all over again and you’ll have no proof that the account was paid in full.