Charge Off - Can't get a hold of anyone to deal with it....

[catlady13]

I have an old IKEA Credit Card that was opened in 2007 and charged off in 2009. It was last reported in Dec 2013. I can't get a hold of anyone at GE Retail Bank - I just sit on hold. I've disputed it on my credit reports and nothing has changed. The one time I spoke to someone at IKEA about it, they could not located my account. I am thinking that my next step is to send a letter, but I don't know which way to go about it.

Any suggestion on how to deal with this would be very much appreciated. I have been working on repairing my credit and this is my last collection account to deal with before I apply for a mortgage in Feb 2015 (Hopefully).

[baller4life]

I would send letter to address on credit report. Is it paid in full? Are you trying to send a GW of PFD?

[RobertEG]

Reporting of a CO is their statement that they have determined the debt to have become uncollectible, and have taken the first step towards recouping some of their loss.

They have shifted the debt in their accounting ledger from a receivable asset to a bad debt, and taken a tax writeoff.

Taling a CO is often a precursor to other actions to recoup more of the debt that they have stated in not likely to be paid.

The next step is often sale of the debt, which can still be collected in full, but based on its bad debt status, is worth only pennies on the dollar to risk takers.

Once the debt has been sold, the OC is done with it after reporting the balance of debt now owed to them as $0.

I would speculate that the current balance reported on the account now shows $0.

The purchaser can, at any time, report collection on their debt.

[catlady13]

It has not been paid. I don't know what would be beneficial. It is one of the older accounts on my credit reports. Could it potentially hurt my score if they agree to the PFD?

[baller4life]

It would affect your AAoA but not as significantly as the CO status is affecting it right now.

[catlady13]

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@RobertEG wrote:

Reporting of a CO is their statement that they have determined the debt to have become uncollectible, and have taken the first step towards recouping some of their loss.

They have shifted the debt in their accounting ledger from a receivable asset to a bad debt, and taken a tax writeoff.

Taling a CO is often a precursor to other actions to recoup more of the debt that they have stated in not likely to be paid.

The next step is often sale of the debt, which can still be collected in full, but based on its bad debt status, is worth only pennies on the dollar to risk takers.

Once the debt has been sold, the OC is done with it after reporting the balance of debt now owed to them as $0.

I would speculate that the current balance reported on the account now shows $0.

The purchaser can, at any time, report collection on their debt.

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The balance on my credit report still shows $878 with $202 past due. It has been that wasy since 2009. I have had no collections pop up on my reports with those amounts, so as far as I can tell....the debt is still with GE Retail Bank.

Will someone still take money from me for this? Lenders won't approve me for a mortgage with this lingering on my credit. They have said I need to, at the very least, have an arrangement set up. I, however, could pay it off tomorrow if I could get a hold of someone.

[RobertEG]

If they are still reporting a balance, that is indication that they still own the debt.

If they had sold the debt, they would have been required to promptly report update of the debt balance owed to them to be $0.

While it is possible that they could have sold the debt without updating the balance, the fact that they have not clearly updated infers they still own the debt.

Taking of a charge-off does not relieve the consumer of continued obligation for the entire debt.  They can continue to attempt to collect the entire debt, refer for collection assistance, or sell the debt.  If sold, the new owner/debt collector can attempt to collect the entire amount, and report their collection to the CRA.

I understand the problem faced in not being able to contact anyone who is now asserting ownership of the debt, and thus not being able to negotiate anything with anyone.

The fact that you spoke with a OC rep and they could not locate information may likely be that the account has been moved internally to their collection department, sold, or otherwise not readily availble to that person.  I would not take that as definitive statement that they cannot verify the debt. 

It is stated that you filed a piror dispute with them, which implies that they did investigate the accuracy of whatever was disputed, and verified, so someone apparently dug it out.  You thus appear, notwithstanding what the clerk told you, their statement that they did locate your account, and verified based on what it shows.

Thus, it appears that they have, at least on the record, adequately fullfilled their obligation. To compel them to provide account records would most likely require bringing civil action, and using the court discovery process to compel disclosure.

Which begs the question... do you acknowledge the debt, and thus are willing to challenge it in court?  That may be the end result of bringing legal action.

I would call the creditor, and ask specfically whether or not they still own the debt.  I would not just send off a letter. I also would not speak with the general rep who answers general calls, but get in touch with the department who handles delinquent accounts.  If they have sold the debt, ask for the name of the new owner.

You need to find out who to deal with.

Otherwise, you would have to wait until contacted by the new owner, which may likely be their reporting of a collection, further adding to your credit reporting woes.