I would like to clarify if you made or make arrangements to pay on this CO make sure you pay them on time, because it will do more damage to your credit (CO and delinquent on a CO). The bank already assumed you were not going to pay so they wrote if off their books. Of course, they still want there money. I do not know all the circumstances, but there is an obvious reason that you got behind; inability to pay (???). If you offer $10.00 per month, explain that is all you can pay, but pay the $10.00. Don't agree to more than you can pay. It is charged off and you don't want to be delinquent on a new agreement that is already CO. If you can give them a lump sum, offer that. Sometimes they will accept 15-25% of the balance. Since they already received 1/2 of the balance, you could have settled for that amount at the beginning (maybe you still can). Whatever your agreement do not agree to anything until they can fax you a copy of the agreement or mail it to you. Make sure you read it, understand it, and can follow through on your end before you agree. Always keep a detailed record of your conversations, even better than the banks records. Name, time and date and short notes about the conversation. If you can pay the full amount over a course of time request in your agreement to remove the CO from your credit after you pay it ON TIME and in FULL; otherwise I personally would offer a settlement on the balance. In your case they have already received more than 50% and your credit report reflects a CO. The longer they take your money you cannot make a plan and the longer it stays on your credit report (from the date of last activity). Try to negotiate quickly. Oh, if one person is not being sympathetic to your situation, speak to another one. Go to the main branch or the President. Sometimes, people just have a bad day and remember, they do want their money so you have to stand firm and persistent, but pleasant. This is much harder to explain in writing than I expected so I hope that it offers you some guidance and Good Luck.