What does a charge off mean? Unrated?

[Anonymous]

What can be disputed with regards to this 'description'? 

For example:  My DH's CR (TU, in particular) it states that the card (HSBC) was paid off in June of 2006 and the was closed in August of 2006.  The balance is at 0 credit limit 0 past due 0 and Pay status is CHARGED OFF AS BAD DEBT, remark says PURCHASED BY ANOTHER LENDER

This item will not be removed until 05/2013

I don't totally remember this card, but believe it is a Union CC that we were never late on and had an excellent history, yet due to DH's 2006 Chap7, I think it was closed by HSBC themselves...

Also, the unrated are on two repos (two cars got repo'd same day in 2007, medical collections that were all included in the Chap7..

How do I dispute or clean this up?  It seems impossible with most showing <included in Chapter 7>.....

Please help, much appreciated

[AndySoCal]

Was the account included in the BK?  When is the charge off being reported in relation to the BK? Is there a charge off amount being reported?

Charge off means is the creditor wrote off some money. Doing so means that the creditor thinks they will be unable to collect that amount money. If there was a balance that was discharged in the BK then I understand what the creditor did. The could not collect the balance due to the BK and they wrote that amount off. The account should report as included in BK (if it was) not a charge off. If the account was not in the BK then thats a different problem.

Message Edited by AndySoCal on 06-16-2009 09:51 PM

[Anonymous]

The acct was eventually included in the BK, but we found out yesterday that before that- it was sold to a debt buyer (hence purchased by another lender)

On the TU dispute form it does not give a selection of 'included in BK'  so how and what exactly can I contest?  Will this just change to <included in Chapter 7>  like the others, or do we have a shot at consolidating these accts because it was included in the BK already?

TIA

Oh, and the acct was PAID in 6/2006 CLOSED in 08/2006, but DH did not file until January 2008, Item will be removed May 2013 ...I think that's what is helping throw us off here.....

Message Edited by familyof5 on 06-17-2009 05:58 AM

[AndySoCal]

Okay. Before disputing the account see if HSBC can give you any help on when or much was charged off. The account may be just being reported incorrectly if so fixing the incorrect repotring problem would help.  if that proves fruitless then the next step

The dispute the account is being reported in correctly. As a part of the BK paper work is a list of accounts that was included in the BK. Submit that as a part of the dispute information. Here is a possible downside to doing this The account would be re-reported to this year.which might /could lower the DH's credit score espcially if the BK was in 2006. With the FICO score bringing a derogatory account forward in time can hurt the FICO score. It might be better not to dispute this. My first response was after a long day so my thought process may not have that great.

Unrated means the lender does not know what the status of the account is. If the account is showing a zero balance leave it alone for the same reason as above.

[Anonymous]

---

@AndySoCal wrote:

Okay. Before disputing the account see if HSBC can give you any help on when or much was charged off. The account may be just being reported incorrectly if so fixing the incorrect repotring problem would help.  if that proves fruitless then the next step

The dispute the account is being reported in correctly. As a part of the BK paper work is a list of accounts that was included in the BK. Submit that as a part of the dispute information. Here is a possible downside to doing this The account would be re-reported to this year.which might /could lower the DH's credit score espcially if the BK was in 2006. With the FICO score bringing a derogatory account forward in time can hurt the FICO score. It might be better not to dispute this. My first response was after a long day so my thought process may not have that great.

Unrated means the lender does not know what the status of the account is. If the account is showing a zero balance leave it alone for the same reason as above.

---

great info....better leave it alone for now......