Help! 2 charged off credit cards

Anonymous · ‎12-29-2016

Hey,

Need some help on a question. I have 2 charged off credit cards, one for over $6,000 and one for around $1,500. Obviously it's very negatively impacting my credit. Aside from this I've always been good about credit but this year fell behind and got sloppy for no good reason.

If I can get my credit back in a good range and I can dilligently stay on time about all payments from here on out, on any accounts.

What is the best thing to fix my credit as quickly as possible?

1) Both the cards offered to settle for less if I can pay it, should I take the settlements and pay them?

2) Make montly payments to the collections agencies?

3) Ask for a goodwill letter or "pay to delete?"

Any great advice and how fast I can take care of this would be incredibly appreciated.

Thanks!

Anonymous · ‎12-31-2016

I'm in the exact same position and need answers too!

RobertEG · ‎12-31-2016

In the posted scenario, the charged-off debt is also being reported by a debt collector.

Debt collectors can receive collection authority either by way of assignment from the owner, or by having purchased the debt.

If the OC still owns the debt, payment can still legally be made to either party.

A PFD can be sent to one or the other, offering to pay in exchange for deletion of the reporting made by that party.

Thus, you can send a PFD to either the OC (for deletion of the charge-off), or to the debt collector (for deletion of the collection).

In most cases, the consumer seeks deletion of the collection, and thus sends the PFD to the debt collector.

However, if you can still offer to pay the OC in exchange for their agreement to delete their charge-off. If the OC additionally agrees to terminate their assigned collection authority BEFORE you pay the debt, then CRA policy will additionally require the debt collector to also delete their reported collection.

If the debt collector now owns the debt, then no PFD can be offered to the OC, and can only be offered to the debt collector.

Any subsequent deletion of the charge-off would then be addressed by a good-will request to the creditor.

Anonymous · ‎12-31-2016

@Anonymous wrote:
Hey,
Need some help on a question. I have 2 charged off credit cards, one for over $6,000 and one for around $1,500. Obviously it's very negatively impacting my credit. Aside from this I've always been good about credit but this year fell behind and got sloppy for no good reason.
If I can get my credit back in a good range and I can dilligently stay on time about all payments from here on out, on any accounts.
What is the best thing to fix my credit as quickly as possible?
1) Both the cards offered to settle for less if I can pay it, should I take the settlements and pay them?
2) Make montly payments to the collections agencies?
3) Ask for a goodwill letter or "pay to delete?"
Any great advice and how fast I can take care of this would be incredibly appreciated.
Thanks!

Who are the creditors and who are the collection agencies? This will help us determine how good will will go for you.

Are the chargeoffs from this year?

You can settle for less than full amount. It would look far better on a manual review for future credit it they were paid in full. But it's hard to pull out $7500 and I understand that. Even paying less than full amount will stop them from updating every month.

Answer the questions above so we can help.

Anonymous · ‎12-31-2016

Thanks!

Anonymous · ‎12-31-2016

Donny10 thanks for the help. The original creditors are Wells Fargo and Citibank. The debt collector on Citi is Client Services. On the Wells Fargo I'm not sure, for some reason I stopped getting calls about that one.

The Citi debt is the higher one (around $6,500); the Wells Fargo is only about $1,500.

Also, are credit repair companies good to use?

Anonymous · ‎01-01-2017

I've used credit repair companies before, however in your predicament I woulkdn't recommend it. All the information you need to do it on your own is in these forums. That money that you would spend on them you can use it to help pay down those credit card debts. If you can pay in full it will be a lot better than settle for less than. You know about today but you don't know if in the future you might need the services of these companies. So if you settle for less the payment in full will be required to use their services. Numerous times we see it here that a couple years down the road people say that they burned a OC and now end up paying them back the rest due to a product that they have.

So if you can pay in full or offer a large amount up front and then have them debit the rest. This will greatly help you down the road. There is no easy road to this so it just takes time.