I think my account is going into charge-off... so confused.

Date: Thu, 10/30/2008 - 07:54

Submitted by anonymous
on Thu, 10/30/2008 - 07:54

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Total Replies: 5

I have a Cap1 CC with an 8k balance. We're broke. No money to pay this. For the last... probably 6 months?... Cap1 has been calling. We've managed to make a payment each month, for the minimum amount (ranging from $230-$350) to keep it from charging off, but the card is still frozen (not that we'd use it anyhow). Today when they called they said we're 176 days overdue and the acct is set to charge off in Nov, but I still set up a $350 payment. She also mentioned a 1k 'settlement' but we can't afford that.

So... even though we've been making payments, is it still going into charge-off? I thought those payments were avoiding that. Will I have to go to court if that happens? I'm so confused, I don't even know what all this means. Can anyone help me figure this out? Thank you.

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Sorry to hear about your situation. Charge off means your account is sold off to an outside company. I believe Federal Banking laws prohibit banks holding onto accounts that are unpaid for 7 months. Wait for the new company to call you and see what they have to say.

Your minimal payments being made should be keeping your account from charging off, but it has to be within Fed Laws. Call them and see what they say.

Good luck

lrhall41

Submitted by Bman90278 on Thu, 10/30/2008 - 09:43

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Charge off does not mean sold. Charge off is an accounting term

Charge off does not mean sold. Charge off is an accounting term that means charged against income. At 180 days past due, they must charge off the account but not necessarily sell it off to a junk debt buyer. Cap1 normally holds onto the account until the SOL expires.

lrhall41

Submitted by NASCAR_Devil on Thu, 10/30/2008 - 11:20

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That's interesting

That's interesting Nascar Devil, I'm sure you are right

lrhall41

Submitted by Bman90278 on Thu, 10/30/2008 - 12:07

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There is no federal guideline that dictates how long a ceditor m

There is no federal guideline that dictates how long a ceditor must hold onto a charged off debt. Only when they have to charge it off. Amex very rarely sells their charged off accounts.

lrhall41

Submitted by NASCAR_Devil on Thu, 10/30/2008 - 12:46

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Thanks for clarification in regards to charge off. I must have r

Thanks for clarification in regards to charge off. I must have read it that it has to charge off and assumed or misread it in regards to having to be sold off.

lrhall41

Submitted by Bman90278 on Thu, 10/30/2008 - 12:55

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