Interesting letter from first premier...

[otter69]

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@wallstreet177 wrote:

If I can get First Premier to agree to not change the date of last activity, would this be a good deal.  The card agreement has a waived first year annual fee.  And then $7 a month for the annual fee their after.  I wouldn't use the card, just pay the $7 fee and show a positive tradeline.  Right now I have a car loan and a fingerhut credit acct on my reports, thats all i have for active positive TL's.  Even if they do change the date of first activity, it is possible to GW them, I have seen successes in the forum.  

My thought is I have to pay this anyways.  Why not just get it done now?  

Thanks for any input.  And thanks for the previous input.

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If you can get First Premier to delete the charge off and backdate the new account to the old account's date, since what they are basically doing is reopening the old account (de facto, if not de jure), then it becomes more palatable. Then I would pay it off and cancel the account. Anything short of that... I would shred anything First Premier sends you. 

[wallstreet177]

I know first premier sucks, but the card agreement shows only an annual fee of $84 (7 a month) and no other fees. Wouldn't it be worth having a positive revolving credit line for $7 a month?

[RobertEG]

+1

It appears to me to be a way to collect the debt by enabling additional reporting of derogs.

Their prior charge-off did not, in any way, relieve your continued obligation to pay the entire debt.

The CO was simply their reporting of an internal bookeeping measuer they took by stating they considered you were not going to pay the debt.

They can continue to attempt its full collection, refer or sell it to a debt collector, with a resulting collection being reported, or bring legal action if still within SOL.

By your agreement to open a new accunt at the amount of the prior, unpaid debt, they now have you under a new agreement to pay the debt, which can result in a new DOFD and also a new running of SOL on the debt now in good-standing should you again become delinquent.

The new account will also lower your AAoA and negatively give you a revolving account that is maxed.

I would not do it.

I would pursue a PFD on the existing account.

[n0smirc]

Ignore this offer and pursue whatever you can on the old account. What's best right now is to get it paid then forget that first premier ever existed. I would instead find a reputable bank or credit union and get a secured credit card. They typically don't have outrageous fees for things that are normally free on real credit cards.

[otter69]

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@wallstreet177 wrote:
I know first premier sucks, but the card agreement shows only an annual fee of $84 (7 a month) and no other fees. Wouldn't it be worth having a positive revolving credit line for $7 a month?

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Here's a little story: I've been through 6 of the ten costliest hurricanes in U.S. history. One of the things which almost everyone goes through is someone knocking on the door asking if you need your roof repaired. Of course  you need your roof repaired! So do you go with the guy who came to you or do you research and find someone who will give you a good deal and quality work? Those who pick the "helpful" guy who knocked on their door invariably get burned...

And the same thing with those who need credit repair. People get the shiny credit card pre-approved offers from First Premier and their ilk when they need credit repair. And because they need a credit card to repair their credit, they go with the company who mails them the pre-approval instead of researching and finding a credit union, secured card or store card which will do the same thing. It may take a little legwork, phone calls, and/or research online, but they could've saved money, improved their score quicker, and had a more satisfactory experience if they'd done that...

[ezdriver]

I'd ignore anything that First Premier sent to me ... except if its Angelina Jolie!

[IamB2]

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@wallstreet177 wrote:

And if I were to take this deal, how can they actually re-age the account.  I thought no matter what, the DofFD is what determines the age.  The new card if simply paying the account for less than the full balance.  How can they legally re-age the acct?

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DOFD is the first day the account became dlinquent and never brought current. The moment you bring the account current all that is over. That will be the worst thing that can happen to your report. It will remail as paid derog for the next 7 years from that moment.

[guiness56]

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@IamB2 wrote:

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@wallstreet177 wrote:

And if I were to take this deal, how can they actually re-age the account.  I thought no matter what, the DofFD is what determines the age.  The new card if simply paying the account for less than the full balance.  How can they legally re-age the acct?

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DOFD is the first day the account became dlinquent and never brought current. The moment you bring the account current all that is over. That will be the worst thing that can happen to your report. It will remail as paid derog for the next 7 years from that moment.

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Nothing changes the DoFD once an account is charged off or goes to collections.  That can only happen if the account is brought current before a CO or collections.  The CO will still be removed at the original date.  So the old account cannot be re-aged if they transferred the balance to the new card.

What will happen is the SOL for suing will start from the moment the balance is transferred to the new card.

[IamB2]

I stand corrected. I miss iterpreted 605(c). 

[EJ829]

Hello,

If I'm not asking too much, can you send me the contact info from your letter?  I'd love to reach out to them in hopes of getting a 2nd chance card.  I agree with you that the fees are numerous, but like you, I'm really trying to re-establish my credit and this would be another positive trade line in my favor.

Thanks in advance.