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What is the best way to deal with charge-offs?

Date: Tue, 07/17/2007 - 05:28

Submitted by ncook9735
on Tue, 07/17/2007 - 05:28

Posts: 5 Credits: [Donate]

Total Replies: 7


I am consider a company call Renaissance debt solutions but I don't know if this is the best way to handle my debts. I have three credit cards total $6,000 and would like to pay them off to get it off my credit report. This company will help but of course I have to pay a initial set up fee of $349.00.
This accounts are now list as charge-off on my credit report.


Is Renaissance offering you debt settlement services to negotiate a lower payoff, or is it some type of consolidation program? Most debt settlement companies charge a percentage of your total debt as their fees, and this usually ranges from 12%-15%.

Have you checked this company out with the BBB? If you have any doubts or feel that something is not right, trust your instincts.


lrhall41

Submitted by Tiffany99 on Tue, 07/17/2007 - 09:03

( Posts: 1058 | Credits: )


If they are charged off on your credit report that means they have been on there for a long time. I would not bother with a settlement company and would just settle the debt on your own. You can probably settle the debt for as little as 10% up to 50% of the amount charged off. If you settled for 10% you almost have all the money if you count the $350 fee you are saving. Make sure you get a settled in full letter before you send them any money and only pay with a check. Keep both documents forever.


lrhall41

Submitted by DOLLARSandSINCE on Wed, 07/18/2007 - 12:56

( Posts: 1078 | Credits: )


Quote:

YOUR NAME
YOUR ADDRESS
CITY, STATE, ZIP CODE

Date:

CREDITOR NAME
ADDRESS
CITY, STATE, ZIP CODE

RE: Acct.#

Creditor:

I recently obtained a copy of my credit report and noticed that your company has reported me as having the above listed account as: (delinquent, sent to collections, etc.). I wish to bring this account to a resolution that will be fair and beneficial for both of us. Therefore, I propose to pay you X monthly payments of $, or forward a check to you in the amount of $ as payment in full, provided that you are willing to send me a letter stating you will report this to any and all credit reporting agencies as: 'PAID AS AGREED' or notify me in writing that you agree to delete this item from any and all credit reporting agencies.

I WILL NOT agree to accept a 'PAID P & L' or 'CHARGE OFF' for an additional amount of time on my credit report. It is my position that I have suffered enough as a result of this problem.

Upon receipt of your letter I will send you a cashier's check or money order in the amount of $.

Sincerely,

Signature Date signed

Your name Date printed


lrhall41

Submitted by Bridget on Wed, 07/18/2007 - 15:31

( Posts: 348 | Credits: )


hi have threee credit card as charge off or sent to collection agencys. but the credit report has it as charge offs. so does the letter really work. and how do you deal with the collection agency after that? cause they brought the debt from the credit card company and then the credit card company gets paid for insurance on that card. is what ihave been told . so what is the truth.


lrhall41

Submitted by on Tue, 07/31/2007 - 20:10

( Posts: | Credits: )


I'm not sure about that, but you can try contacting the creditor and make a settlement offer to see if they will deal with you. If so, then you need to provide the written correspondence from the creditor agreeing to your proposal to the collection agency and then request that they remove their items from your credit reports since you are dealing with the creditor.

Also, if the creditor agrees to your proposal, you can try getting them to agree to mark the account with "paid as agreed" instead of "settled for less than full balance". "Paid as agreed" looks much better on your credit reports. If they do agree to to do this, make sure you get them to state it in writing, and then check your credit report to make sure they followed through. If not, you have written proof of what they said they would do.

If the creditor tells you that they sold the account off and no longer have anything to do with it, then you do have to try and get the collection agency to work with you. The above advice for working with the creditor still applies. You can try the same tactics with the collection agency as far as how to mark your account on your credit reports, and getting everything in writing.

Keep us updated on how you get along.


lrhall41

Submitted by Tiffany99 on Fri, 08/03/2007 - 10:10

( Posts: 1058 | Credits: )