What is a credit card settlement?

In a settlement program, a credit issuer offers to settle a credit card balance for a portion of the amount due, in a brief period of time, usually fewer than six months. The cardholder will pay the settlement amount in any increments that the program indicates or by the final due date. Only the canceled balance is reported to credit reporting agencies as being charged off by the credit issuer. For general questions, call Card Member customer service at 800-285-8585.