What to do about a charge-off?
Date: Mon, 04/17/2006 - 18:59
Last fall we had made a payment arrangement with a creditor, that was for about $100 less than the scheduled loan payment. At not time did she mention, nor did we ask, about late fees being applied to the acct because of this arrangement (that was her suggestion anyways). The loan balance went from $5200 to $6100, all while we have paid about $900 to this company. In emails they threated to take us to court over the balance of the loan, and when I replied asking why they were threatening us when we had faithfully abided by the payment arrangement offered by their employee. I was told they never threated to sue us. I must have imagined reading that.
I included the lender with T&C, after talking in-depth with the rep. I wanted to make sure that the original creditor (Pioneer Military Lending) would work with T&C. I was told they have in the past.
Today, after receiving an email that they were going to send a letter to my husband's command, I called the OC to ask about the account. I was told that they don't work with debt consolidation at all. Now why would someone from T&C tell me this? The rep at the OC kept pressuring me to make a payment, but I don't have the money to make payments to them AND to T&C, and the payment to the creditor is more than I can afford right now anyways. The rep said that the company is getting ready to charge off the account. She also said that if I were to make one full loan payment, it would stop the charge-off, and make the acct post as current on hubby's credit report. After more consecutive, in full payments, they could "possibly" re-write the loan to get a lower payment. Umm yeah, I had done that LAST summer, and the payment went UP. What should I do in this situation? No, I haven't called T&C yet about this information from this creditor. I know that companies don't HAVE to work with credit counseling companies (funny thing though, current bankruptcy law requires 6 months of credit counseling, but if companies won't work with CCA then the consumer is in trouble either way huh)
My take on this is that if they charge-off the account, would they be more likely to sell it to a collection agency, who might be more willing to work with T&C? And maybe the accts that have been handled by T&C in the past have been charge-offs??
sidenote- she really peeved me because she kept saying, well you just bought a new car and I see other creditors that are current (I guess she pulled a current credit report while I was on the phone). Wow, must not be looking at the right credit report because we bought the car almost 4 YEARS ago, his Capital One acct is suspended until I finish catching it up, and mine just came out of suspension. So I know she was blowing smoke about this, trying to use the info as a way to coerce me into making a payment arrangement that there is no way I could afford to keep. I'm not trying to get out of paying them, I just can't afford the $300 payment for the next several months.
Hi set4sail!!! Quote:My take on this is that if they charge-off
Hi set4sail!!!
Quote:
My take on this is that if they charge-off the account, would they be more likely to sell it to a collection agency, who might be more willing to work with T&C? And maybe the accts that have been handled by T&C in the past have been charge-offs?? |
I am going through this exact same thing with Dell Financial. I've had this account with them since 2001---fell into some hard times and wrote and asked them for help. They refused. Then I joined a debt consolidation program and added them on it, only to find that they refuse to work with debt consolidation programs. so I ended up taking them off. They have been a pain in the butt to me since the beginning. They finally did a charge off and sent it to a collection agency. Now I am paying the collection agency through a debt consolidation program. The guy I spoke to at the debt consolidation place said he hated to say it but sometimes its better to let something go into charge off and let a collection agency get it, so that they'll work with the debt consolidation program when the original creditor refused to.
Thanks Shirley, I needed some glimmer of good news. It's kin
Thanks Shirley, I needed some glimmer of good news.
It's kind of what I'm thinking, maybe it is better to let it be charged-off. The big problem we run into is that since hubby is active duty military, these companies (even though they shouldn't) will send letters of indebtedness to his command. Too many (which could be one, or three, or five, however the commanding officer feels) letters or complaints and hubby could lose his job. He (hubby) was SUPPOSED to let his command know that we were entering into a debt consolidation program, so they would know if any creditors contacted them that the situation is being handled. Hopefully that is enough to keep them from causing us trouble.
Dana
Boy, what a hassle Dana. I really hope everything works out for
Boy, what a hassle Dana. I really hope everything works out for you guys. I know the PDL companies prey on the military folks. I thought they were making laws about that. If they havn't, they should.
LessIsMore, That is what the collector at Pioneer told me: th
LessIsMore,
That is what the collector at Pioneer told me: they won't refuse money sent, but they won't work with a debt consolidation company. My best guess is they will charge me late fees etc every month so it's a never ending cycle?
Am I reading your post right, that all of the creditors passed off the debt to another entity?
You also have the right to attest the payments you made through
You also have the right to attest the payments you made through the credit bureaus and have them investigate how this turned into a charge off when you were making payments. This may in turn land up on your credit report as making payments rather than a charge off.
Quote:So I know she was blowing smoke about this, trying to use
Quote:
So I know she was blowing smoke about this, trying to use the info as a way to coerce me into making a payment arrangement |
Either she has an older credit report or she was trying to know if you are really paying the other creditors or not. Be specific while talking to them, answer in either yes or no most of the time.
I have read your post in another thread where you have mentioned that why there is no law for creditors to accept a debt management plan or credit counseling. I was going through some online articles. It seems they are not compelled to accept payment through consolidation program yet. So you have to negotiate with them. Inquire if they will accept a higher amount from your consolidation company, then you can convey this message to your counselor and set up a new plan, if possible.
Charged-off is s derogatory item, however, it seems that you will find it easier to deal with a collection agency. Always think carefully before taking any decision.
Thanks Stan. I don't want the account to be charged off, and ho
Thanks Stan.
I don't want the account to be charged off, and hopefully the two creditors will work with us. A rep from T&C called them today, to personally assure them that they will receive full payment.