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Charge Off

Date: Tue, 07/13/2010 - 23:31

Submitted by DeterminedInAz
on Tue, 07/13/2010 - 23:31

Posts: Credits: [Donate]

Total Replies: 2


Hello All:

Well, we are now six months into our journey, have settled many accounts - but with funds very limited at this point and the remaining three creditors threatening the dreaded charge off - I am wondering what does that really mean?
One of the accounts is already with the collection agency FirstSource Advantage - and they call nonstop. I have yet to speak with them, but they are now telling me they need to get in touch with my urgently.
What happens when an account charges off?? Does that mean you can't negotiate anymore? Are your hands tied? They keep saying it stays on your credit for 7-10 years if it charges off - are these just scare tactics?

The three creditors are:
HSBC - Best Buy Account
HSBC - another Best Buy Account with FirstSource Advantage
Chase - this is set to charge off (possibly) next month

Already settled two other HSBC accounts and they seem to be the most challenging to deal with...

Any insight that anyone might be able to provide would be helpful.
Thanks very much!
DeterminedInAZ


Quote:

remaining three creditors threatening the dreaded charge off - I am wondering what does that really mean?
Charge-off means that the creditor has written off the account as a loss, and hands over the collection power to a collection agency (CA). A debt is generally charged off after 180 days of delinquency, and it hurts your credit. Once an account gets charged off, you will have to deal with the collection agnecy. However, you can still request the original creditor to pull back the account from collections. Once pulled back, you can request the creditor to remove the charge-off from your credit report. However, not all creditors agree to pull back, nor does the creditors always agree to "Pay for Delete".

Quote:
They keep saying it stays on your credit for 7-10 years if it charges off - are these just scare tactics?
No, this is not a scare tactic. Once charge-off is entered on your credit report, it does remain on your credit report for 7 years, if not removed by the creditor. The collection agency cannot remove it.


lrhall41

Submitted by SC on Wed, 07/14/2010 - 01:07

( Posts: 3937 | Credits: )