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Hello! So I have dont so well with rebuilding my credit and I have not had any issues with bills for a long time until recently because my husbanc was laid off work. Anyway, my checking account is really overdrawn, MOST is bank fees. I called the bank and my account is currently froze and I have set up a payment arrangement to get it paid off. However, I am really concerned about the account endind up closed and being reported to credit bureaus even though I have a payment arrangement set up with them. The guy from bank told me that even charged off accounts are not reported to major credit bureaus it is only reported to chex systems. Does anyone know if this is correct information?!?!?! I have done so well with fixing my credit and I do NOT want this to end up reported. Does anyone have any experience with a charged off bank account?
It's probably just reported to chexsytems and maybe earlywarning. They deal more with the standard banking issues.
why would a charged off bank account not be reported to the credit bureau? I was shocked when the guy told me that, but if its true I am not as stressed to knowing that I wont take a huge hit on my credit report.
I had a joint checking acct with my ex husband that was overdrawn when we divorced. I refused to pay it off. They DID report to the credit agencies and I waited 7 years for it to fall off. Just because of my stubborness to pay his stuff.
Usually they show up later from a CA collecting on the debt. With payment arrangements made with the OC this will be prevented. Plus when it's paid you can request they remove the entry from Chexsytems.
Mine was actually reported by my bank, First National Bank. I agree though, I don't think they will report as long as you pay like you are suppose to. My bank was also a small hometown bank. Maybe that's why they did.
If you have a payment agreement with the creditor/bank, I see no basis for their ability to charge-off the debt.
The entire premise of a charge-off is that it permits the creditor to shift a delinquent debt from a receivable asset on their books to one which they conclude has become "uncollectable," thus adjusting their stated assets and tax liability on those assets.
Having agreed to a payment plan, they accept that the debt is not "uncollectible." They are actually collecting it.....receiving monthly assets and adjusting their accounts receivable accordingly.
By removing the receivalbe asset from their books, it would be contradictory, in my opinion, for them to account for continued receipt of such assets.
If you should become delinquent in your agreed payment plan, then they could immediately charge-off the remaining receivable assets, so to avoid a charge-off, make sure not to miss a payment.