Closed Account vs. charge off???
Date: Thu, 08/12/2010 - 20:03
I received correspondence from Chase Bank that I my card was maxed out and they had not received payment for some time. Apparently, my wife maxed out this card and decided not to inform me or pay the bill (second card w/discover she did the same but this card is not closed and I have been making payments to it as well). The balance was over 10k and I began making payments about 5 months ago and the amount owed is now a little over 3k. Even though I was making these payments Chase closed the account. They said it has been reported to the credit bureaus, but is not a charge off. They said it would be a charge off if it is not paid for 180 days. What is the difference between a charge off and a closed account by Chase? Do they both stay on my credit report for 7 years? I thought that the time frame started when you stopped paying? What is worse? I'm just very frustrated. I had almost perfect credit.....
Charge-off is when the creditor hands over the collection powers
Charge-off is when the creditor hands over the collection powers to a collection agency, and writes it off as a loss after 180 days of delinquency on the part of the debtor. On the other hand an account is closed by the creditor when there's no activity on it for some time.
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Do they both stay on my credit report for 7 years |
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I thought that the time frame started when you stopped paying? |
What you can do is request the creditor to reopen the account, and negotiate payment arrangement with them. Get the agreement in writing. Also request the creditor to agree to a "Pay for delete" (PFD) agreement. With PFD the negatives on your credit report will get deleted. However not all creditors agree to PFD.
They said the account was closed due to past due status. Is this
They said the account was closed due to past due status. Is this considered just as harmful as a charge off to my credit report? Also, it was closed on 5/14/2010, yet I had made payments on 3/2, 3/5, 3/12, 5/3 in the sum of $4,350. All this was done online and it never said anywhere that the account was closed. This is very frustrating.
