I have several charge offs and one is fingerhut this debt was charged in 1997- I just got a letter from a collection agency saying I could make payments or settle in full, but I wont be setting directly with fingerhut- The debt is very small (190.00) should I write this company back and tell them Im going to pay finger hut not them??? what if finger hut tells me they dont want my payment- I was so stupid when I was in college!!!! Help..

[LCW]

Bree:
Did you have other accounts that were in collections? I recentl read where some debt collectors have made an arrangement with Capital One to "offer" credit cards to people they were trying to collect on to allw them to "consolidate" debts. Its a shame practice, and I beleive Capital One got in some hot water for it.

[4u.bryan]

Deanna,

Once an account is over to collection agency, original creditor won't agree to deal with. You can contact your creditor to verify if this collection agency is authorized to collect your debt.

Since, the agency is willing to settle out, go for it. Negotiate with them so that you can afford the payments easily.

Does it benefit your credit to make a settlement on a charged off account?

[roxette]

Tammy,

Both the terms, charged off debt and settlement are negative information if shown on your credit report. Once entered, it will stay on your credit file for the next 7 years and the credit scores also get lowered.

However, in order to repair your bad credit and give a favorable view to your future lenders, it is better to pay off the debt so that the said debt is shown as "paid charged off" in your credit report.

Though, the rates of interest may be higher when you will apply for a new loan, but you will still have the chance of getting it if you have paid the past debt.

Regards
Roxette

i have a credit card with chase.in the begining i was paying my account. now i have financial dificulties to pay this account.they have charged off my account and put it in to law firm collection agency.my question what option do i have and how you can help me?thank you

[4u.bryan]

Charge-off account is definitely a negative mark on your credit file and it is going to hurt your score. According to Fair Credit Reporting Act, your credit report will show this charge-off account for seven years from the day it went delinquent.

However, if you repay the account, the status will be changed to “Paid charge-off” which is definitely better.

So try to repay the account. You can take help from counselors to prepare your payment plan. This site offers a free counseling. You can enter your contact information in the sign up page of this site also.

I had an account with swiss colony an catlog company. My account was assigned to a collection agency, I disputed this and letter the account show up as a charged off on my credit report from the original creditor.

[4u.bryan]

Gwendolyn,

Charge-off status can push your score down. Your credit report is going to show this charge-off account for 7 years from the date it went delinquent. Your future creditors will take it as your financial disability and it will be difficult for you to get credit approved in the coming days.

Try to pay the account. A paid charge-off is always better. Contact your original creditor and to work out some payment plan. You can also repay the account through debt consolidation program.

Never hesitate to ask your queries in forums.

What are the laws for charged off credit cards in Georgia? I have several that were charged off due to medical reasons. Can the creditors collect on charged off accounts? What action can they take?

[4u.bryan]

Cathy,

Welcome to forums

Lots of people have incorrect idea on Charged-off accounts. When creditors find that a particular account to be uncollectible, they report is as charged-off or bad debt. It does not mean that the debtor is no more obliged to pay it.

If any of your accounts are reported as Charged-off, it will hurt your score and it will be there in your report for 7 years from the date it was reported. If you pay a charged-off account, your report should show it as paid charged-off, which is better than a charged-off.

However, if your account is past SOL, then no one can legally force you to pay it. SOL for Georgia is 6 years and the clock starts from the day of last activity seen in your account. Can you remember when you paid last for this account? Then you can understand if your account is within SOL or not.

If collectors ate threatening you for a past SOL debt, you can tell them not to waste their time on it, because you are not legally bound to pay it. FYI, the debt is still yours and you can pay it if you wish.

See this thread for related info:

http://www.debtconsolidationcare.com...old-debts.html

Hi my name is Herve I am looking for a professional sample letter to help me dispute some accounts that I paid off and are still showing on my credit report

[stanley]

Hi Herve,

Visit the E-book section of this site. One free e-book is available there with list of sample letters.

http://www.debtconsolidationcare.com/books/

P.S. Always send your letters through certified mails with return receipt requested.

I have several cards that have been charged off, I was paying them thur a debt couseling associations. I requested several times to have updated balances. I never received anything. How can I handle this situation to clean up my credit report. The cards I currently have are current. I need to buy a new car. Help.

[stanley]

Marylin,

You have paid charged-off credit cards, right? So these accounts should be updated as ‘paid charged-off' in your credit report. Once the charged-off mark enters your credit file, it stays there for 7 years. So you cannot get them removed.

However, ‘paid charged-off' is better than ‘charged-off'. If your creditors have not reported the accounts accurately, ask them to do so. Or dispute the entries with credit bureaus. Visit the thread below to view how to place a dispute-

http://www.debtconsolidationcare.com...portentry.html

Since you have paid these accounts through consolidation company, you can speak to your consolidator as well and ask for their help. Keep us updated with this topic.

I did not pay off the full amounts, because they never responded with current balances. I really want to clean up my credit report. I cant get the creditors to give me any information. I dont want to pay anything more until I get the current balances on my accounts. I have not paid on these accounts for sometime they were then charged off. Thanks,