Restoring Credit Cards That Had Been Charged Off....

I have two credit cards that had been charged off due to delinquencies and I was curious if anyone had any strategies for negotiating to have these accounts restored? While I had previously neglected these accounts, I'm now in a position to address them and would very much like to have the accounts active again. Any suggestions are helpful, personal experiences of a similar manner are greatly appreciated!

Thanks!!!

Hi avirex

Welcome to the forums. It is very nice that you are looking for improving your credit file. As your credit report might have been reflecting these charged off accounts, you can make them active by contributing a fair amount of your money and ultimately clear it off.

You can take the help of the debt consolidation program to reduce or eliminate the financial charges, late fees that have accrued on it. Further, the consultant will be negotiating with your collectors and offering you a payment plan which will be suitable to your present needs.

Although, charged off accounts are considered as negative markings in your credit report, but your efforts to clear this debt faster will provide a better view. You will not have as much difficulties in acquiring credit in the future because your credit report will be reflecting these accounts as paid. The debt consolidation program will be a positive help to solve this problem with ease.

Regards
Roxette

I had a credit card account charged off in 2001, and had a collection agency purchase the charged off account and now they are demanding full payment of debt plus interest since 2001. What can I do to lower there request?

Please check in your state if the said debt is within the SOL period. If the Statute of Limitation has expired then you are not legally required to pay it.

You should also ask them to validate the said debt before you start making payment towards it. Unless and until they provide you the complete details of the accounts, you are not legally required to pay it.

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

After the debt has been validated, you have to negotiate with the debt collector and convince that you are willing to pay. Also offer them a payment plan that is suitable to you.

I have a couple of credit cards that have been charged off and I have begun to repay them. I was wondering if my credit score would be improved if I paid off all of my charged off accounts first or should I pay off my accounts that are up-to-date.

Hi Latonya

Welcome to the forums. You should concentrate on paying off those accounts which are up to date first. Since the accounts already in the charged off status have created negative marks on your credit report, your credit cannot be tarnished more than that.

You should actively contribute towards those accounts which can further enhance your credit scores. After all the accounts will be paid in full, it will be shown in your credit report and you will acquire better credit ratings comparatively.

Regards
Roxette

Can a credit card company take debt from an old charged off debt and apply it to a newly opened account?

Even though the charged off debt is written off by the creditor, but it is still collectible depending upon the type of debt and the state laws. Hence collection process can come in the form of lawsuits, garnishments, and liens.

If you pay the charged off debt, the current and future creditors will take a positive view of making an effort to pay the old account off. You will not only be improving your credit, but also will avoid future collection actions that might occur if it is left unpaid.

I had a credit card account that was charged off over 10 years ago. I started trying to pay the debt off after the ten year period when the account was sold to a collection agency. The orginal collection agency is no longer handling my account but now has been given to another collection agency who wants me to pay the balance in full. I am now disputing the amount and I also question whether the collection agency can keep this old charge off on my credit report. Any help you can give would be appreciated. How do I get this off of my credit report????

Hi

Any negative information appearing in your credit report can be removed from your credit report after 7 years reporting time. Usually, this removal happens automatically.

If it has not been done by the credit bureau, you can send a letter of dispute asking for verification.

However, there is one thing that you need to check before you send a dispute letter. The SOL period on a debt is renewed when you activate any account with a payment made towards it. So, please check the date of last activity in your account to confirm the SOL. If it has happened, then the collection calls will start up.

Regards
Roxette

when you started paying that 10 year old debt, you re-aged it unfortunately...

There are times when a card might go into collections or even be closed and you want to use that particular card from that particular Bank/Company. Don't waste your time.

If you do want to waste your time this is what you have to do. First you must understand who can do what by when and where you are in the overall picture. As long as you pay the minimum within 30 days you are not late. After 30 days you're late and sometimes you'll get a call to indicate so. You can still use the card and it is not closed.

After 90 days the card now goes into collection, you get many calls and you can no longer use that card. It is now closed by most companies.

Do not wait after 90 days to try to regain the use of the card.

Collections may be with the company that issued the card or an outside company. You will know which.

After 180 day the card is definitely in collections and the account is definitely closed. Your time has expired.

The only way to get another card with the company, or harder yet the same card & number, is to talk to the collections department of the issuing card and make a repayment plan that includes the use of the card or one similar.

If the card is in collections with an outside company, not the issuer, your chances are now little to none. Speak to a manager (not the first person who answers) and ask for the person with the authority to make decisions. Tell them you are about to pay off the collections account and see if there is anything they can do. If they say yes, always get a letter. Not only will this help with your credit report it will also keep them honest.

By this time, over 180 days, the account is charged off. The issuing company couldn't care less about the account because they have now sold it to someone else. If you make an arrangement to pay with an outside collections company always start at ½ the amount. 9 times out of 10 the collection company bought your note for .75 cents on the dollar. Why give them more when you don't have to?

If by chance 10 years have passed and you're thinking of paying off the account – that's up to you. By law, if you have not paid a bill for 7 years or more then you are no longer obligated to pay that bill. If however you do make a payment, then change your mind, you are not responsible for the entire amount and the clock goes back to 0.

Check the statute of limitation on collection accounts for your state. You'll find a wealth of material.

If this is still on your report and you want it removed write the credit bureaus.

Donald Martin

I had a credit card with Providian Visa in the past that was let run delinquent because of my divorce. The balance was supposed to be consolidated when my ex-wife and I split ... but the consolidation check apparently never made it to Providian (who, for the record, is among the list of decietful companies).

Now, months later, and after OVER TEN charge off entries on my credit report by the same company for the same account, I have been looking into ways to repay this debt. I found a solution, but it takes careful working.

Once you have the money to COMPLETELY repay the amount due to them, then (and only then) contact the collections department by telephone.

When you speak with a rep. tell them that you have a charged off account (verify it with them) and you'd like to settle the debt. Tell them that if you agree to pay the full amount due (including fees) will they reverse the CO (charge off) on your credit report and replaced with Account closed by customer. Paid satisfactorily. Most will say "yes".

Before you make the payment, have them mail you an official statement stating their participation in your agreement. Mail them via certified mail the payment with a money order (keep the receipt) and a COPY of the agreement letter. Once the payment has been made, give them sufficient time to clean your credit report.

If they do not hold their end of the bargain, you can still contact the credit bureaus and show them the agreement letter. They will then make the changes on their behalf.

Another note: credit scores are generated on a point system --and the points are more heavily weighed on "recent" activity. So if you contact this company and do not pay them right away (or even if you do) do not be suprised if the recent negative update of "account still not paid" negatively affects your score. In the long run you'll have a cleaner conscience and your credit wont have charge offs.

cryptowizard

Thanks for this valuable update. It will be considered a very good practice if we always pay our bills on time. Our prompt payments will put us in a much comfortable position before we apply for a loan. This point is emphasized because a late or missed payment just before applying for a loan lowers the credit score and has worse impact than a missed payment five years ago.

hello everyone. i got a letter saying i could reopen an account to take care of my "charged off debt" t capital one of $696.00 -- the only problem is -- i never bought or charged anything with a capital One card. i responded to an offer, then when the card arrived, they asked for a large annual fee. so, i said no thanks... i wrote and called them to cancel the account immediately. 2 months later, they were sending late fee charges to me - ON A CARD I NEVER USED! finally, they said "okay - we'll clear that off."

Now, I am getting this "charged-off" notice. Please help me!

Hi bree

Welcome to the forums. Filling up the application form only sometimes opens up all sorts of charges and there is nothing left to argue in that. Although true, but its pity that these types of rules are into existence.

Now, all you have to do from your side is to get the details of all the charges that have been stated in your account. Check your credit report also if they have hit in your credit file as 'charged off'.

If it has not been done so far, make sure that you won't let this to happen. Negotiate with your creditors as early as possible and clear this debt. Do not let it go to your credit report leaving a negative impact.

Regards
Roxette