Charged off Credit Card Account (USAA) updating monthly

[Anonymous]

I've got an old charged off USAA credit card account that is showing on each of my reports as a closed chargeoff, with the amount that was charged off and a past due amount reported as well. Each month, USAA updates the account and the past due amount gets incremented up by the amount of the original monthly payment.

Are they able to update the account each month even though the account is closed? My credit scores are calculating this as a recent derogatory and they are also factoring in the amount of the balance on this account into my revolving credit utilization. All of my current active credit cards have less than 3% utilization, but when this charge off is factored in, it's showing my utilization as 89%, which is not accurate.

The account is due to fall off the reports in January of next year, so I'm looking at 11-12 months until it falls off. I'd like to resolve this sooner of course because the monthly updating of the past due amount is holding my scores back. 

[Anonymous]

---

@Anonymous wrote:

I've got an old charged off USAA credit card account that is showing on each of my reports as a closed chargeoff, with the amount that was charged off and a past due amount reported as well. Each month, USAA updates the account and the past due amount gets incremented up by the amount of the original monthly payment.

Are they able to update the account each month even though the account is closed? Yes, they can even add late fees on top of it, if its part of the original agreement. My credit scores are calculating this as a recent derogatory and they are also factoring in the amount of the balance on this account into my revolving credit utilization. All of my current active credit cards have less than 3% utilization, but when this charge off is factored in, it's showing my utilization as 89%, which is not accurate. Unfortunately, thats the way FICO works. When you have charged off credit cards its a double whammy.

The account is due to fall off the reports in January of next year, so I'm looking at 11-12 months until it falls off. I'd like to resolve this sooner of course because the monthly updating of the past due amount is holding my scores back.  All you can do is offer to PIF or settle for a lesser amount. Otherwise it will continue.

---

[abbafan]

---

@Anonymous wrote:

I've got an old charged off USAA credit card account that is showing on each of my reports as a closed chargeoff, with the amount that was charged off and a past due amount reported as well. Each month, USAA updates the account and the past due amount gets incremented up by the amount of the original monthly payment.

Are they able to update the account each month even though the account is closed? My credit scores are calculating this as a recent derogatory and they are also factoring in the amount of the balance on this account into my revolving credit utilization. All of my current active credit cards have less than 3% utilization, but when this charge off is factored in, it's showing my utilization as 89%, which is not accurate.

The account is due to fall off the reports in January of next year, so I'm looking at 11-12 months until it falls off. I'd like to resolve this sooner of course because the monthly updating of the past due amount is holding my scores back. 

---

Hey. I too have charged-off USAA cards (3 of them with approximately $3400-$3600 on each) and they're due to fall of in the Spring 2017. Can't wait.

The only solution for you that I know of is PFD - Pay For Deletion. You call USAA Member Debt Solutions Dept. (don't know their number, call regular care and ask) and tell them that you had financial problems in the past and now you're trying to rebuild your credit and are willing to pay off your debt if they delete the tradeline from all 3 credit agencies. They'll standard answer would be that by law they're required to report accurate information (which isn't really true) to which you tell them that they're required to report accurate info IF they choose to report the tradeline. However, there's no law that requires them to report the tradeline and that's what your strong point should be. If I had the money I would've PFD'ed. I got a little over 2 years, still a lot. You've only got 1 year. Not sure if it's worth paying off (depends on the amount too, of course and whether you're planning to do something major this year). If they agree for PFD ask them to mail you an official letter with USAA's letterhead stating that upon the receipt of your payment they'll remove the tradeline from Ex, Eq, and Tu and only then you send them the payment. Do not accept any payment plans as they might extend your statute of limitations. 

Good luck.