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Member
Posts: 29
Registered: ‎04-27-2008
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Charge off after Settlement

[ Edited ]

I have an account with Citi Financial Auto that was not more than 30dpd when i recieved a lump sum of money and decided to pay off the account.  I settled the account for less than what was owed and immediatley if was reported as a charge off account... I want this account off of my credit ... is there any way i can dispute this to get it off?

 

forgot to add ... the account was charged off with a zero balance

Message Edited by learningstage on 02-14-2010 08:36 AM
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Established Contributor
Posts: 945
Registered: ‎06-13-2008
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Re: Charge off after Settlement

Sorry to say, it sounds like this is reporting correctly.  You were in default, and then, in settlement, you paid less than was due.  Sounds like they charged off the remaining balance due.  Charge off is just an accounting term--when the company does it because they have to (on an uncollectible debt), they'll still come after you for the amount, but they can also charge off amounts that they no longer intend to collect (which is what happens here, since you settled).

 

I think disputing would be improper since it is probably reporting correctly.  Your best bet would be to write GW letters to Citi to see if they'll do you the favor of removing the item.  If you get denied a bunch of times, then it may worth thinking about whether you would be willing to offer paying the balance in exchange for a change in their reporting.

Valued Contributor
Posts: 2,691
Registered: ‎07-29-2009
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Re: Charge off after Settlement

Hi learningstage, I agree with the above advice.

 

Any time you settle an account for less than the amount due, it is going to hurt your credit. This is so whether or not they charge off the balance.

 

If you write them in an attempt to have them remove it from your reports, remember that you are asking them for a favor. They do not have to remove this. Be nice. Take responsibility. Don't sound angry. Sound oh so grateful if they would please remove this.

 

Right now, this account will stay on your credit reports for 7 1/2 years from the date of first delinquency (the date you first went late and never caught up).

Member
Posts: 29
Registered: ‎04-27-2008
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Re: Charge off after Settlement

it doesnt have a balance its a zero balance on the report
Epic Contributor
Posts: 22,398
Registered: ‎01-17-2008
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Re: Charge off after Settlement

[ Edited ]

If the account was CO without a balance, it could possibly have been sold to a CA who is not reporting. Or since you settled for less they listed it as a zero balance CO.  If you were behind it is ok for them to do this.  And of course they would not tell you that.

 

Do you have any thing in writing stating that the amount you paid totally paid the account off and you were no longer financially obligated?

 

If you do not, then they have the right to try to recoup the rest. 

 

Message Edited by guiness56 on 02-14-2010 09:17 AM
Valued Contributor
Posts: 2,691
Registered: ‎07-29-2009
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Re: Charge off after Settlement

Hi guiness,

 

I think the OP is questioning only why it is still on their credit reports. I don't think any more money is trying to be collected.

Moderator
Posts: 17,409
Registered: ‎07-14-2009
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Re: Charge off after Settlement


learningstage wrote:

I have an account with Citi Financial Auto that was not more than 30dpd when i recieved a lump sum of money and decided to pay off the account.  I settled the account for less than what was owed and immediatley if was reported as a charge off account... I want this account off of my credit ... is there any way i can dispute this to get it off?

 

forgot to add ... the account was charged off with a zero balance

Message Edited by learningstage on 02-14-2010 08:36 AM

It doesn't matter what the balance shows. It is still a CO on your report. The only thing you can do now is try writing GW letters to get it removed or wait the 7.5 years from the DOFD.

 

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. FCRA 605(a)(5). The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for 7 1/2 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That is one single date-certain, and cannot be reset. FCRA 605(c).

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is 7 1/2 years from the same DOFD on the OC account, and the CA cannot reset this date. Again, FCRA 605(c).

 

 

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work


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Epic Contributor
Posts: 22,398
Registered: ‎01-17-2008
0

Re: Charge off after Settlement


LynetteM wrote:

Hi guiness,

 

I think the OP is questioning only why it is still on their credit reports. I don't think any more money is trying to be collected.


 

Oh, I guess I read too much into it.  Oops.

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