cancel
Showing results for 
Search instead for 
Did you mean: 

paying charged off or collections accounts?

tag
Anonymous
Not applicable

paying charged off or collections accounts?

I know their is a lot of information on this subject, but I can't seem to get a real answer.  I have numerous medical collection account, one repossesion of an auto loan-my husband has some of the same medical collections on his report and one repossesion and two charged off credit cards.  Most of these items or due to fall of our reports between 2008-2010.  I was seriously ill about 4-5 years ago and didn't work-got behind etc.  I am getting some much mixed information as to pay off some of this old debt or not.  My husband and I have saved some money and now we really want to try to improve our credit score.  We have paid our current bills (mortgage, car loan, private school tuition and one credit card) on time for over three years and yet our credit score is in the high 500's .  What can I do to raise our score?  I believe I read either on this forum or MSN money that if some of the bad credit is going to drop off within a year or two-Don't pay it.  Pay the other ones.  What shoud I do? Confused 
Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: paying charged off or collections accounts?

i had an old credit card on my report that was about to fall off so i disputed it and they removed it for me, if you pay now it probably will stay on your report longer. i would pay the items that are new on your report, rather than the old.
Message 2 of 9
Anonymous
Not applicable

Re: paying charged off or collections accounts?

Hi 4real,   Please read
 
This is full of info. and also has the abbrevs that we use.
 
Before doing anything you need to know what your SOL is
simple SOL
 
CRPT v SOL
 
If you are past SOl  they can not sue you!   CRTP deals with CR  only!
 
Anything that falls off in 2008  don't touch it  At least until we know what it is.
 
When collections drop  your scores can go up 30-50 points (that is what we have found so far)
 
For medical bills....many states have no SOL on hosiptal bills BUT other medical go by SOL.
 
We need to know dates before we can advise what to do & when to do it.
 
Items drop off CR 7-7.5 years from DOFD (TU & EX use DOFD     EQ usues DOLA)
 
Most states use DOLA for SOL.
 
When working on collections (if on CR usually means a CA is reporting)   We have DV letters that we use.
 
Lets start with the CC  COs..................look at the OC  that will tell you the DOFD and the DOLA
 
Also look for CAs  that were assigned or bought your debt for the CCs
 
CAs are know for changing the account #s from the OC.......try to match the amount owed OR if you get lucky a CA might show the name of the OC.
 
Always KEEP all hard copies of your CR forever.....debts are sold over & over soooooo we might get it removed or dropped now and it will show back up in a few years! Your old CR are your proof of what the DOFD or DOLA was.
 
A simple could wake a sleeping giant. On accounts that are not due to drop before 2009 you might be within SOL and they could file suit before you are ready.
 
Also   when dealing with a CA  it can be better if they have no idea that you know about them.  They could have trouble getting the required info.  that they need for a DV within the 30 day time limit.
 
Example:
 
Cap1    opened 1999    Closed or CO  4/2002
 
Dr. Joe Blume     appt.was  4/2005   This type of medical would go by the mo. after the appt. DOLA would be 2/2005 and DOFD would be  5/2005
 


Message Edited by HappyDays on 01-27-2008 02:42 PM

Message Edited by HappyDays on 01-27-2008 02:46 PM
Message 3 of 9
Anonymous
Not applicable

Re: paying charged off or collections accounts?

Thanks for all the info - I am still somewhat confused so I will give you what I have-most of my medicals are due to fall off between 2009-2010.  There is a few that will fall off this year.  My husbands old CC charged off accounts are also due to fall off around the same time.  I know the the SOL in my state is 10 years, but not sure if 10 years from the original deliquency or 10 years since a CA bought it - I don't really know.  I think if anyone was going to sue they would have done it by now.  I also have a signature loan that was charged off by American General and that is due to fall of in 2010  and my car repo to fall off in 2010.  I really want my credit cleaned up before then.  Will most CA or banks make a one payment settlement for 1/2 with a PFD.  I have the money to pay about 1/2 of all these old debts, I'm just scared of opening the wrong door.  Thanks
Message 4 of 9
Anonymous
Not applicable

Re: paying charged off or collections accounts?

The SOL  starts at  DOLA........it can be reset with any amount of payment or activity.
 
CC  is called an open account (this is the type of account) and SOL is ??
 
A doctor visit and other medical (not hospital) SOL is started when first payment is missed (DOFD) As with the SOL for the CC  SOL can be reset with any activity.
 
What state are you in????


Message Edited by HappyDays on 01-27-2008 06:54 PM
Message 5 of 9
Anonymous
Not applicable

Re: paying charged off or collections accounts?

I am in Louisiana
Message 6 of 9
granny031350
Established Contributor

Re: paying charged off or collections accounts?

wow 50 point increase for collection accounts!  Is that for each account  Smiley Happy  I have 6 collection accounts falling off my report between June and Sept this year.  Yippee!!!  Maybe then my equifax score will move up (finally)
Message 7 of 9
Anonymous
Not applicable

Re: paying charged off or collections accounts?

I guess no one can give me anymore help.  I still don't have the answer to my questions.  Someone please help.
 
Thanks
Message 8 of 9
Anonymous
Not applicable

Re: paying charged off or collections accounts?

The SOL in Louisiana for
Open accounts: 3 years.

4real wrote:
I am in Louisiana



Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.