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

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 ?? 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

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..

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.

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?

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

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.

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?

Cathy,

Welcome to forums :D

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://forums.debtcc.com/forums/payold-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

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.

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/video/disputecreditreportentry.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,

Maylin,

Since your credit report is not showing the correct balance, you can dispute it with credit bureaus. Hope you have some documents in support of your previous payments to them. Keep those safely. If you don't have, perhaps your consolidator would help you to get the receipts. You can attach copies of these documents while sending the dispute letter to credit bureaus.

Or you can ask your credit card issuers to report it correctly. Credit bureaus never collect consumers' account information. It's the creditors who report consumers' accounts details to bureaus. If your creditors do not update your accounts, it will be a violation of FCRA; hence you can sue them too.

Always send your correspondence through CMRRR.

Hello all! I have 2 charge offs on CR. I am going to pay then with tax refund. Should i settle or pay in full. They are both in collections. One is with academy (how i found this site). I haven't talked to anyone. Should i try the OC? It can't get any worse can it. thanks!

Rachas,

Few questions to ask:

Could you tell us the date it went charged-off?

Charged-off mark stays in credit report for 7 years. Then it goes off automatically. If your accounts are close to get off, it will be wiser to wait for the auto-removal.

Otherwise, try to pay them in full, if possible because if you decide to pay it in installments the 7 year reporting time is likely to start again.

http://forums.debtcc.com/forums/chargedoff-cards.html

How far is it from the SOL of your state?

If the accounts are past SOL, no one can enforce legal steps against it.

Thanks Stan- cap1 charged off 1/05 hsbc charged off 12/04. limits of 500 & 300 now over 1000 & close to 1000. Is a settled charge off worse than a paid charge off? thanks rach

You're welcome Rachas :D

Both the cards are far from SOL and way to go to cover up 7 year reporting period. Paid charged-off will have better impact on your score.

should i try to talk to OC? maybe they will reduce fees? the cap1 is with Blitt & Gaines & hsbc with academy. I found this site looking for them- from what i've read i don't want to talk to academy. thanks Rach

You can definitely speak to OC. Blitt & Gaines is a law firm holding unsatisfactory record with BBB. You can check their report with BBB website.

As per the feedbacks posted by the forum members it seems that Academy is also very tough to deal. Please check it-

http://forums.debtcc.com/academy.html

Hence, if you can settle the account with OC that will be the best deal. Don't forget to make a written agreement before paying them.

Hi I just paid off capital one attorney (for 2 of my accounts) Figuring it would be good I setteled ($400.00 less) on one and the other was paid in full. My question is capital one reported it as written off $900.00 and setteled for less then amount.I only settled $400.00 Less with their attorney? Should I do anything or leave it blank? Also this one was opened in 1998 when will it come off? Thanks I hope to get help. Kris

krispy1997, I fear if there is anything to be done now since they have already reported to the bureaus. And the fact is that you paid a lesser amount than the original one. So, they have reported it in their way. This account will stay in your file for a period of seven years from the date of first delinquency. You need to know when you first defaulted on this account. From that day, you can calculate it for seven years.

I have collections on my credit report from 1994. How can these be disputed and deleted from my credit report? They are still showing up 10 years later!!! Please help!

Collection accounts should not have remained in your file by now. Under the FCRA laws, all negative information stay in the file for a maximum period of seven years only. You need to highlight the disputed items and write a letter to the CRA reporting it. They will review and update your file.

I realize that "guest" in this post is probably no longer on this forum, or maybe has joined but I wanted to clear up something this person said:

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

That is not true. A debt cannot be re-aged, it is against the law. they can try to do it, but it is against the law, and just another illegal practice that these sleezy collection agencies do.

To clear it up: when you pay on a 10 year old debt for example, it only updates the DOLA (Date Of Last Activity). this date is EXTREMELY important when dealing with OC's. Many times the DOLA is wrong, giving you ammunition in your "Your company is reporting this account in error" guns.

"...Figuring it would be good I setteled ($400.00 less) on one..."

When you do this, you MUST have a written agreement. And in your written agreement, it must stipulate that you want it reported in this way:

1. Account paid in full, never late.

And they must agree to take away ALL negative marks, or else, no deal. If they don't take it right away, just say "thank you!" and try another day. Keep trying, they'll cave. Remember, YOU have what they want....... THE MONEY!

Get it back signed from them first, or else DON'T DO IT!

We need to make a post about how to settle a debt, eh moderators?

thanks

Are you talking about the debt settlement program? There is a page on this subject in this website

http://www.debtconsolidationcare.com/debt-settlement.html

Besides, there are many forum topics on debt settlement. Put a search in the box above and you will be able to view those.

http://forums.debtcc.com/forums/comparison.html

If you have something interesting to share with us, go ahead and create a new topic. We will like to read something interesting from you.

I have a US Bank credit card that was secured with a 500 dollar savings account. I had a balance of 500 when I stopped making payments. They let the account run for longer than 6 months before they charged off. They claim to have taken the 500 security and apply it toward the balance but, I still have a balance on nearly 1900 dollars. If you include the 500 security that would be 1900 in late fee and over-the-limit fees. This card has been charged off. US Bank is reporting it in credit report but no collections and no contact by a collections agency.

My questions are...
1) Are these fees normal and or legal (especially with a secured card)
2) Should I contact US Bank to try to pay of wait until drop off in 2010

Trying to fix my past mistakes any input would be greatly appreciated.

Thanks

Amy, go ahead and dispute with the company. You will pay the actual charges only and not pay anything that is disputed. The company will check and update the records if possible mistake is found. Also, don't leave the account unpaid till 2010. The negative remark can hurt your credit and deprive you of some credit opportunities in the future.

These are the actually charges from US Bank. I tried to pay the entire bill before it was charged off, but I wanted them to take the 500 security deposit off. They said they already had. These are the charges that they have added and they will not budge on that. I have talked to them and they want 1900. I would like to pay the debt by I do not believe I owe that much.

Thanks for your input.

here's my story with cap one, three years ago my account was charged off. three days ago, i called my bank's 1-800 number to check my balance, as my paycheck is direct deposited. My account was overdrawn by hundreds of dollars. When I called the bank, they told me that cap one had a garnishment on my account and my funds had been frozen. Needless to say i called the credit card company and got someone in the Phillipines who spoke very little English. She told me that the department I needed to talk to was not open on Wed. so I had to wait until Thurs. to speak to someone. So, here I was without access to my money. Luckily I had a few hundred stashed away which I deposited to cover the overdraft, but now my Visa check card has been revoked. My advise is say no to capital one.

A payment of 30.00 needs to be made so that my account is not charged off. I don't know this person calling and I don't want to send my debit card over the phone. What do I do?

Linda,
Contact your creditor and find out alternate payment options if you are uncomfortable with a check by phone.

Charged off accounts can be reopened in certain conditions. You would have to contact the creditor and ask for their retention/loss migration dept. If the creditor is willing to do it,you get the affect of having a positive tradeline from date of account originally opened.