Charged off debt showing as 180 days late

[Anonymous]

Please forgive me if this issue has been discussed. I have looked through the boards and I am still unsure of how to proceed. I have a charged off debt with Dell of $1855 that the last payment was 12/2007, I am in Texas and the sol is 3 years I believe. I don't mind negociating a payoff with them however they will not do a pay for delete or fix my credit where it does not show as a current late payment. Are there any suggestions out there before I do something I cannot undo?

Thanks so much for your help,

[Anonymous]

are you sure it is showing currently late?  There should be a date for last delinquency shown.

Usually it shows late prior to charging off and alot of people start chargeoffs at 6 month mark (180 days).  It is likely showing that the largest or most recent delinquency is 180 days late and is no charged off. 

There is no way to force them to do a PFD or anything.  They are under no obligation to do so and you are still under an obligation to pay it even after SOl.  SOL just means that they can not sue you.  I am assuming you are looking at a mortgage since you posted in the mortgage board and there is a strong chance that SOL or no, you will have to pay this to get a mortgage.

[Anonymous]

I am not sure why this had to be moved. Yes I am looking for a mortgage.

It is listed as 180 days late payment of $180, with a charged off debt of $1855.

I have no problem paying this off, I simply want to do it in a way that I benefit the most. The people at Dell would not talk pfd, or anything but paid as agreed. Will that help me at all?

[Anonymous]

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@Anonymous wrote:

Please forgive me if this issue has been discussed. I have looked through the boards and I am still unsure of how to proceed. I have a charged off debt with Dell of $1855 that the last payment was 12/2007, I am in Texas and the sol is 3 years I believe. I don't mind negociating a payoff with them however they will not do a pay for delete or fix my credit where it does not show as a current late payment. Are there any suggestions out there before I do something I cannot undo?

Thanks so much for your help,

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Just an FYI-- According to the Texas Civil Practice & Remedies Code, the SOL for this debt will be 4 years, not three.

As the previous responder already indicated, you can't force a lender to PFD. But, you can certainly keep trying to convince them within reason ("reason" being not letting it go to a judgment). You can Google the SEC filing for Dell, find some appropriately high enough executive officers, then send your well-worded PFD request again.

[Anonymous]

So if I just negociate a payoff it will not do me any good?

They will list it paid as agreed.

[RobertEG]

A charge-off and a 180-day late are totally dfferent.

A 180-day late is stored as of its date of occurance in your payment history profile.  You payment history can post monthly, with or without changes or updates.

The question regarding the 180-day late, in my mind, is when was the account closed?  Monthly delinquencies can be added only for delinquencies that occured prior to closing of the account.  A charge-off closes an account, if not closed earlier.  What is the date of the alleged 180-day late, and what  is the date the account was closed?

A payoff, without a PFD agreement, wont lead to the removal of the prior reporting of any delinquencies or the charge-off.  Payment, if you are still within SOL, might remove the chance of legal action and judgment.

[Anonymous]

Ok, it looks different now. It is showing past due $180, Charge off debt, balance $1855 with 0 30 day, 0 60 day , 0 90 day late.

I suppose I should just negociate a pay off and at least they will change the $180 past due, and the charge off debt as well as the balance being $1855.

the debt was charged off December 2007.

[RobertEG]

I presume that, when they did the charge-off, they reported a charge-off amount of $1,855.  They charged off the enitre debt, not just the amount by which you were delinquent in payments.  The acount is closed, so you no longer have a continuing monthly delinquency in payment.

If you now pay the amount charged off, that will require them to update the status of the CO to paid.

IT would not requrie them to modify the prior amount of debt they charged off at the time they took that action.

Strictly from a FICO scoring perspective, the amount of the CO is immaterial.  A charge off of a $1 debt is the same as the charge off of a $10,000 debt.

But that information is material to future credtiors if  they do a manual review of your CR.  They want to see how much of a bad debt you incurred at time of CO.  So that is retained in your credit file.

[Anonymous]

So I am understanding that for my actual credit report it will not matter if I pay this off or not. However for the person that actually decides if I get the new mortgage it will show as good faith. Thanks for your help!

[Anonymous]

I have an update and really need help. My mortgage professional put my credit through CreditXpert and decided I could raise my credit with TransUnion 63 points, I am at 615 with them, my lowest score. It came back with nothing for the other 2.

What is said is that I must "paying down the past due amount to $0 on your WEB BANK/DFS account, and updating the past due amount through rapid rescoring.

Now this is my Dell account that shows: CHARGE ACCOUNT, balance $1855, Past due $59, 180 days late, I have not made a payment to them since 12/2007. I called Dell and they will not even consider a pfd, however they are willing to negociate a payoff and said they will mark my account "paid as agreed".

Please help me with this, I have seen where others have paid off Charged off accounts and it actually lowered their score.

Thanks!