HSBC credit card debt (Atlantic Credit CA)

[Anonymous]

I have a problem and need some advise on how to best handle a particular debt.

In 2007, I was approved for an HSBC cc (limit: $3000).  I was all excited, had a good job and decided to charge a chunk of a long-awaited trip to Cancun.  I got back in the States and in less than 2 months was laid off and remained unemployed for a while...so long that by the time I landed another job and could start paying the HSBC bill, they had charged off the account and sent to a CA (Atlantic Credit and Finance).  I really want to get this one cleared up in the best way possible, but I'm not sure what I should do...

HSBC (bought by CA: Atlantic Credit & Finance)

Original Debt: $4483

Current Balance: $3707

Date Assigned (CA): 7/22/2008 

Date Reported (CA): 4/12/2010

Status: HSBC lists as: Payment after Charge Off

Atlntc Credit lists as: Collection Account

I opened this account with HSBC in Jan 2007, but the CA now reports it as when they received it and they keep reporting 'Last Activity' date as current, which will keep it going on the CRs. CA continues to call on a monthly basis and has offered a settlement amount close to 60% of the balance. I can't afford to pay all of the settlement offer right now, so I'm trying to weigh my options and choose the best route to get this one resolved.

Should I call HSBC and try to work out a PFD with them directly or should I take the settlement offer through the CA and just be done with it? CA has been diligent in telling me they will not PFD!

I appreciate any advise/counsel provided on either of these companies!

[RobertEG]

I speculate, from what you have said, that your CR probably shows the following:

OC account opened 1/2007

A first 30-day late sometime in mid-2007.Assume,for date purposes in this reply, that it was 6/2007.

A 60-day late then reported by the OC the following month.  7/2007

Then an additiional 90-day late reported the following month. 8 2007

The OC then charged off the unpaid debt sometime in late 2007. That date is not very important.

The OC then reported to the CRA that they had referred the debt for collection, as of 7/2008.

The CA first entered your CR in 4/2010, when they posted a collection to your CR.

Assuming that all of that is close to being correct, you would then have five separate derogs in your CR to deal with.

If you do nothing, and just wait for time to remove any of those derogs, they would remain as follows:

The 30-day late with the OC, until after 6/2014. (7 years from its delinquency date)

The 60-day late with the OC, until after 7/2014.

The 90-day late with the OC until after 8/2014.

The OC charge off until after 12/2014 (7 1/2 years from the DOFD with the OC)

The CA, also after 12/2014 (71/2 years from the DOFD with the OC).

Assuming those facts, how to get earlier deletion is complex.

First, you have to know who now legally owns the debt.  When the OC brought in the CA, did they sell the debt to them, or did they just assign collection activities to them?  You cannot  make a PFD offer to the OC unless they still own the debt.

ff the OC still owns the debt, you can make a PFD to them.  But the OC has no authority to compel the CA to remove its prior reporting should they decide to accept your PFD offer.  They can agree to delete the three prior monthly reportings, and the reporting of the CO, but cant agree to deletion of the CA,

However, if the CA now owns the debt, and you make and get a PFD acceptance from them, all they can agree to is deletion of their CA reporting, and not the deletion of the three prior monthly derogs, and the CO, properly reported by the OC.

Paying the debt without a prior PFD agreement has the obvious benefit of removing the chance of legal action also being taken, but payment without a PFD agreement wont. in and of itself, benefit your FICO score by one point.

[guiness56]

HSBC (bought by CA: Atlantic Credit & Finance)

Original Debt: $4483

Current Balance: $3707

Date Assigned (CA): 7/22/2008 

Date Reported (CA): 4/12/2010

Status: HSBC lists as: Payment after Charge Off

Atlntc Credit lists as: Collection Account

I opened this account with HSBC in Jan 2007, but the CA now reports it as when they received it and they keep reporting 'Last Activity' date as current, which will keep it going on the CRs.

The dates the CRAs are reporting have no affect on when it will come off your report.  That goes by the DoFD.  However, they are allowed to update monthly.  With doing that, the date reported is updated to the current month making it look like a new collection.  They will probably continue to do that until paid.

The fact that the OC is listing payment after CO more than likely means they sold it to the CA.  It would normally say sold/transferred and show a 0 balance.  Is the OC still reporting?

Not being 100% sure the OC owns the account or not, I would call them and ask if you can make payment arrangements with them.  They may say no but you can try.