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I have an account that has been charged off. It is showing a balance. I believe this is incorrect. Also, is there an amount of time after last payment that an account should be charged off? Can it just be listed for years, updated every month, as 120 past due?
Will disputing, and having the account updated to $0 balance, do more harm then good, by having the most recent activity be recent?
@igids1 wrote:I have an account that has been charged off. It is showing a balance. I believe this is incorrect. Also, is there an amount of time after last payment that an account should be charged off? Can it just be listed for years, updated every month, as 120 past due?
Will disputing, and having the account updated to $0 balance, do more harm then good, by having the most recent activity be recent?
They are allowed to report a balance for as long as they own the debt or up to the point it is paid. They can also add lates and interest monthly up to the point it is paid or sold.
If you agree with the debt, I'd send a PFD. If you disagree, then contact the OC and ask for whatever info is needed.
I asked for information, and was told if I wanted to settle, I would have to contact CA (xyz). I have never received anything from CA, they are not reporting on my Credit reports, and the debt is still within the SOL, for one more year, so I don't know if I want to risk waking a beast.
Typically OCs just don't have the time or resources to collect on a debt and that's why they'll refer you to a CA. As long as the OC reports the balance and owns the debt, there'll be no threat from a CA to report. Sometimes you have to work your way through the system to get someone at the OC to work with you.
However, if you don't have 100% saved up and if you are inside SOL, do absolutely nothing until you either have the $$$ or SOL expires. Once either condition is met, then send out PFDs to the OC if the OC still reports a balance. You can always offer less than 100% in the PFD, but again wait if 100% isn't saved. I've seen some horror stories in here of posters with great intentions PFDing a creditor for 50% or so, offering every dime they had, only to be denied and sued for 100%.
It's probably assigned to a CA. Which means the OC can report a balance.
The condition for charging-off a debt is that it reach the stage at which the creditor considers it to be uncollectible. For most purposes, a debt can be presumed to have become uncollectible if it is at least 120 days delinquent. It appears that the delinquent debt reached an appropriate age and level of delinqueuncy to support a charge-off.
How that is reported is a different issue. Once they report a charge-off, the new current status would replace its prior status of monthly delinquency, such as 120-late, to technically, the current status should be charged-off. The 120-late would be retained as the level of delinquency prior to its current status, so both would remain in your credit file/report. Thereafter, any reporting they make can "update" by providing the current status, so yes, they can continue to report that status monthly for as long as it applies.
Taking a CO does not, in any way, affect the debt due by the consumer, so no, they would not be inaccurate in continuing to report the debt balance due.
A creditor is only required to report a $0 balance under two circumstances. One, they sell the debt, or two, it is satisfied.