I had two Cap1 card that were charged off. They were keeping it fresh by adding $5/month to each account even though it was charged off. They didn't $0 balance, and instead where reporting it as amount owed and past due. It was really hurting my score because not only had CO, overl Limit Credit Utilization, and Past Due amount owed.
they settled for about 60% of the amount owed, and I was able to take a large tax refund and pay off both accounts in full.
However, when they corrected the balances to $0 amount owed, they noted the account as being charged off again. So fico was handling it as though I had just received a new 30 day late on these two accounts. I disputed this reapplying of the charge off, and they took it off.
After all this drama, I'm still have the CO from Cap One, but my score has increased about 60 points. Now Cap One has sent me a credit card offer, saying "we see we've lost you in the past...: