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Debt Settlement & Charged off accounts

Date: Tue, 04/27/2010 - 21:40

Submitted by Jean Hershey
on Tue, 04/27/2010 - 21:40

Posts: 11 Credits: [Donate]

Total Replies: 6


Recently I've been hearing a lot about charged off debt being bought by third party companies and then those companies try to collect on it. About four years ago, I did a huge debt settlement with several companies and negotiated my debt through a company and paid off the settlement accounts. Most of them show on my credit history as "charged off" and several still say that I'm 60 to 120 days late, even though the accounts are closed. This, of course really hurts my credit rating, and now I'm really worried that someone is going to come after me for that charged off debt. Any thoughts on this? Can this happen?


yeah, you will need some kind of proof you have paid these accounts. Now I can tell you that they can't both be late and charged off...it simply doesn't work that way. They are breaking federal law by reporting these account inaccurately.

Unfortunately there are some unethical debt settlement companies out there that may have taken your money and run, you really need to look into that and dig up every shred of proof you can that you paid these accounts! If they were paid they should be listed as 'settled' or 'settled for less then owed'. Honestly these don't help your score overmuch either.

Once you get whatever proof you can, then send each of these companies a debt validation letter. Include copies of whatever proof you have (have account numbers redacted if they are checks from your bank) and tell them this account was paid. Give them like 30 days to respond. Now, normally they don't have 30 days to validate, but this is a unique circumstance as they are reporting all wrong....be very specific..if they do not fix the problem within 30 days on day 31 you will be filing suit on them for violations of the FDCPA and FCRA. Send the letter certified mail return receipt and when you get the green cards back you dispute with the CRAs, if they verify...they have just violated even further.


lrhall41

Submitted by goldenbast on Sat, 05/01/2010 - 12:01

( Posts: 2884 | Credits: )


I would agree with golden blast that there are some fly by night organizations and this is very true in the case of debt settlement since you are so stressed out by the debts that if anybody comes your way offering your relief such as debt settlement you can fall for it i thin you choose the wrong one there because had these debts been settled you credit report would show as paid and settled and not as charged off incase these are paid off to the creditors then in that case i hope you have the documents to prove that you have paid of these debts through a settlement


lrhall41

Submitted by Renee Davis on Tue, 05/04/2010 - 11:58

( Posts: 12 | Credits: )


I do have every last document and I think I will start working on this right away. Most of the debts do say "Legally paid in full for less than the full balance" and are coded "KD" on the payment scale "key derogatory". So, I believe that most of the accounts are safely settled and closed. My biggest fear was that a third party may buy the remaining debt and come after me for it. Thanks for all the great input!


lrhall41

Submitted by Jean Hershey on Tue, 05/04/2010 - 18:36

( Posts: 11 | Credits: )


Quote:

Originally Posted by Renee Davis
I would agree with golden blast that there are some fly by night organizations and this is very true in the case of debt settlement since you are so stressed out by the debts that if anybody comes your way offering your relief such as debt settlement you can fall for it i thin you choose the wrong one there because had these debts been settled you credit report would show as paid and settled and not as charged off incase these are paid off to the creditors then in that case i hope you have the documents to prove that you have paid of these debts through a settlement


There are regulations in place to help you stay safe. I went with preferred financial services based in MA. I'm from Texas but they work all over the country. Through settlement companies you the huge advantage of reducing the total amount of your debt, sometimes by a substantial amount. Part of your total debt balance can be erased, lowering the amount of money you have to repay. You actaully eliminate the interest rate you have to pay on your debt, which lowers your monthly payments and the total amount that you owe.I save 400 off my monthly payments! When you get behind on debt payments, late fees can accumulate quickly on my accounts with PFS they eliminate dlate payments and over limit fees.

They set us up a payment plan that workd for mee, and stopped the collection calls that caused us all a great deal of stress.To be able to reduce the debt I owe and sets up a payment plan I can actaullyafford, it will be able to get pay off faster and begin repairing your credit score. The actaully have a credit program at the end that is going to help alot.


lrhall41

Submitted by anonymous on Fri, 05/07/2010 - 08:27

( Posts: 202330 | Credits: )


We were quite pleased with our Preferred Financial experience. We feel that we were provided more information than its competitors in regards to all aspects of financial issues and planning. While many programs like credit consouling can help with a quick "band-aid" approach to your debt. Preferred wants customers to succeed financial for the "long haul". We talked with a manager there and focusedon planning and prevention rather than quick fixes, we are going to have all our debt resolved within 48 months.


lrhall41

Submitted by anonymous on Fri, 05/07/2010 - 10:34

( Posts: 202330 | Credits: )