Hi, .I'm new to the forum, have been reading posts sporadically all day and decided to write the embarrassing, rather devastating tale that I have been sick about for 2 months. Posters here are so knowledgeable and I’m hoping you can offer some help with my “secret” stupidity.
A July credit report revealed that I had a charge off of a Citibank card. The first delinquency is reported as November 2010. It's really a careless and rather foolish story, but here goes:
In November I dropped my car at a service dealer for new tires. I had someone meet me there to drive me to an appointment and I felt rushed. I picked the snow tires, asked for installation and gave them my Amex card. The serviceman volunteered that the tires would qualify for a rebate if I charged them to a Goodyear card. I quickly filled out the top portion of an application and signed, I believe… but I do know I couldn't wait while he had trouble with his computer. I told him to charge it to the new account or I would pay by American Express. That was the beginning of a series of bad decisions….so wish I had just used the American Express.
Later that day, I was delayed and knew I wouldn't be back to pick up the car before the station closed. I spoke with the service rep and indicated that my friend's teen son would be by for the key and to please leave the vehicle locked with invoices etc. I would pick up the car later that night after getting the key from my ride'/friend's son. When there were no service invoices or tire warranties within, I never really thought about it much until I was driving North a week or two later and snow was predicted. I thought "Hmmm, guess I'll get to check out these tires", recalled that I didn't have the paperwork and called the station, hands free while on the road. (Witnesses present)
I was told that the paperwork was not there. I requested they drop copies in the mail; he agreed but said he would have the representative who had helped me pull up the records. He was off for the weekend (Thanksgiving weekend) and would call me.
I never thought about it again until mid- late December when I received a PIN number by mail.
I called the credit card company and advised that I had received a PIN but no card! She assured me that was not a problem as they often cross in the mail. I indicated that I had only opened the account for a rebate and questioned whether it would be credited on my bill. She replied that I needed to submit paperwork including invoice etc. by a deadline in January (the 8th or 18th?? forget now) and a check would be mailed. I discussed that I had no paperwork, called the Goodyear station, and left a
message.
Common theme.... I then forgot about it again (over worked single menopausal mom with memory lapses...too much information but it explains the poor handling of finances here)
In the meantime, going about life as usual:
I pay my bills on time: they are paid automatically or charged to my Amex. I pay my Amex in full monthly and it carries a large balance each month. I don't carry cash and put pretty much EVERYTHING on American Express
.
99% of my mail is solicitations, advertisements, etc. Sadly, I don't open them because any credit cards I want, I already have. Any bills received are already on automatic payment with the bank.
During that time, I had contacted service magic for contractor referrals recently and was plagued by repeated calls. I didn't pick up any phone calls which numbers I did
not recognize. (I had also suspected prank calls for other reasons)
Early this month, I received an envelope from my bank. Typically, I don't open mail statements as I can view them online. However, there was some cautionary/urgent type phrase on the envelope that prompted me to view the statement. It was a letter freezing draw privileges on my home equity line. The line is 100,000.00 and has 60,000 remaining. I have not drawn on the account in a few years. I pay the "interest only" loan by direct deposit from a linked bank account and make 900 principal payment to the account monthly, as well. I have no other mortgage.
I pulled my credit report and saw there was a charge off of the Goodyear account.
I will add that the nonpayment was 180 days old!
(I recalled that in late May, I had picked up a cell call just prior to the start of my daughter's graduation ceremony, thinking the unknown number was an arriving guest looking for us at the outdoor seating. A collection agency introduced itself and I interrupted that it wasn't the time and to please call back…I never followed up )
The CR also showed I had a 90 day no payment on my only other open revolving charge card with balance. (2 remain inactive) That debt was paid in May when I became aware that the online payment from the store's site had not been credited. I negotiated removal of the late fees, but was refused a verbal request to have late record removed from credit.
This prompted me to go on a mission.. sorting through months of disorganized mail. I found collection notices for the Goodyear account (unmarked envelopes) but neither a Goodyear card nor the statements.
In exploring my options on this board, I see that the DV date has passed. Also, the 1200+ seems right since I recall the tire service was verbally quoted in the neighborhood of 800 - 850 without the rebate. The credit report shows the total as 1244, with 425 of it past due. (6 months at 35.00 late fees = 210, plus interest charges)
I have not had credit problems or a poor record payment prior to this year. The “deluge timing” makes it look as if I've lost my job or fallen into excessive spending etc. Neither was the case. I'm embarrassed to report this carelessness.
I don't dispute that I bought new tires and it is kind of incredible that I have been driving on them daily without a thought to payment. However, I never received invoices or credit statements and it would be the combined fault of the credit company (Citi) and my forgetfulness which incurred the late fees. Sad to admit, but I don’t give much thought to any payments as they are made by cash at time of purchase, scheduled, or billed and paid in full! I do not live extravagantly by any means, though.
Will I be paying for this for seven years?? My score was never great, but credit worthy ( 636, 650 due to the fact that credit was pretty much all bank payments and limited revolving debt , as well as a short history because established accounts were closed with a divorce and I re-established credit ) .
How should I approach having charge off to improve the likelihood of having it deleted?
Since I know it is there, I have now been avoiding the CA unmarked calls and one notice for settlement. (Honestly, there was no intentional avoidance of them prior) Burying my head in the sand now isn't helping, I know, but I've been "afraid, embarrassed , even a little traumatized to the point of obsessing "
. I've been learning about all my mistakes and ruminating about how to correct or approach the matter. I've just finished helping my daughter through college. She received a lot of grant and merit scholarships, so I was able to contribute to the point that she graduated debt free. I'm not sure whether my son will garner the same in the next year and he may need student loans to help out. I fear I now won’t be a qualified co-signor and am literally sick about the thought that I may be spoiling his college opportunities!
Should I attempt to have the charge off deleted by PFD or GW and what is the likelihood of success with a new charge off from Citi?
I am going to try to reinstate my credit privileges on the existing Home Equity line of credit with my bank. As I've stated, I've not been delinquent there, the loan to value is good, and my income can support payments.
Any other advice besides "get your life together!”? THANKS SO MUCH FOR READING ALL THIS…ANY HELP IS GREATLY APPRECIATED
That sux....
