Credit repair - charged-off account after payment

It's better to have a paid in full, not settled remark in your credit.

Can you dispute what the remarks say in a case like this? My boyfriends report has a paid in full - settled for less" type thing - when really he paid in full after charge off for WAY more than the card limit was in the first place. If it would help to just say paid in full after charge off, we'll attempt to change it.
Also, the original limit on the card was $250 and somehow he wound up owing over $4000 (we settled for around 2,300. Since he paid them so much more than he actually ever spent - it is really irritating that it says "Settled for less". I know fees and interest racks up, but seriosly folks!

Yes, you can dispute it. Getting it changed will help.

Under the fdcpa laws, once a charged off account is paid off, it must be reported as 'paid charged off' in the credit report. You can't have any other status except this. A paid charged off account is much better than an unpaid collection account.

Get in writing from the CA that they will be posting it as "paid charged off'

Before you pay anything, review the account thoroughly if it is within the SOL period. Most charged off accounts go past the legal collection period depending upon the state laws. However, you must also make sure that the CA is having the legitimate details about your accounts and they are not making a false attempt. Get the debt validated by them in writing. They are required to do so under the federal laws.

Hi John,

The SOL is based on the state where the card was issued or where I lived? Can I decline working with the collection agency and work with the creditor directly? I had sent a letter directly to the creditor, 1st Premier Bank, asking to work directly with them on a settlement and the next thing you know I get a call at home from a collection agency.

Hi help03

SOL of that state will be taken into consideration where the account originally took place. You can decline working with the collection agency only if they have been hired by the original creditor. If the account has been sold out with a zero balance by your creditor, unfortunately you will have to deal with the CA only. It will be worth calling up 1st Premier Bank and work out an arrangement. As you are willing to pay the debt, they might ask the CA to stop contacting you.

You refer to where the account originally took place, do you mean where I lived when I opened the account or where the creditor is located?

help03

The place where you lived when the account was opened will be taken into consideration of the SOL factor. The creditor's location is not considered in implying the statutes.

I monitor my credit report and was advised that a collection company has taking me to court and obtain a default judgement. I didn't know they were taking me to court and was never served. Also, the amount that are requesting is a different amount. I called the court and they said since the court date happen in march on the 1th and i didn't get notify until the 14 of april 2007. There is nothing i could do. There was no signature of a server on the court documents. What do i need to do to get this off my report and bring back into court. Are collection agencies allow to go into court and state a amount you owe with your knowledge or providing you with proof of the debt?

File a motion to vacate or set aside judgement with the court due to non service. Study your court rules to format it correctly or hire lawyer to file it for you.