Rebuilding Your Credit

[915westtexas]

So my Wells Fargo Dealer Services (formerly Wachovia) charged off in March 08 with $7000 balance it's now showing a $9960 balance. It's increased over the years.  Can they do that?

[Creditdreamer]

They absolutely can unfortunately. I had a Citi acct that went from 5500 to 7500. They can even continue interest once a payment arrangement has been set up but they usually don't as long as it's a fairly quick payoff payment arrangement.

[RobertEG]

When a creditor does a charge-off of a debt, it is an internal bookeeping measure on their part, and does not affect the debt obligation by the consumer.

It is still unpaid debt.  Debt does not cease accruing interest on the unpaid amount because it becomes delinquent.

[LIGHTNIN]

---

Creditdreamer wrote:
They absolutely can unfortunately. I had a Citi acct that went from 5500 to 7500. They can even continue interest once a payment arrangement has been set up but they usually don't as long as it's a fairly quick payoff payment arrangement.

---

+1,   On your auto loan contract will state the interest they can charge. Also check you state laws for the maximum interest they can charge.

[915westtexas]

Update:  This auto loan was charged off and never repossessed.  I called Wells Fargo Dealer Services and spoke to someone who told me Vital Recovery Services has the debt; If I pay/settle with them they then can send me the title.

I called Vital Recovery Services and spoke with someone who would settle the account, possibly for 20 percent because of the age (CO Mar 2008).  I'm assuming then that it will update as paid/settled charge off.

From what I understand, this will not reage the debt right?  It's still on my record for 3 more years then...will it have an effect on my score at all to have this show paid/settled?

Thanks!

[Trigga]

I always thought if you pay it off it will look as if the account is newer than it actualy is when they update the balance , of course i may be wrong .

[Creditdreamer]

No. If reported correctly, the date should report the date of first delinquency. Only updating it should just update the amount and the last reporting date.