Is restating a CO over and over again every few months allowed?

[deltagirl99]

I'm not exactly certain what you are trying to say.....but if I interpret it correctly, a delinquncy that happened at a set point, should slowly diminish in relavence over time, and as new history presents a pattern of good payment.

Reoccuring fresh delinquincies or spotty credit  would present itself going forward, and thus demonstrate the character of the individual.

But if an individual has month after month after month of perfect payments, then the score should slowly increase as time passes.  That is only logical.

[Anonymous]

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@deltagirl99 wrote:

This is what I am coming to understand.

So let me ask the question in a "moral" sense.

How can you rebuild credit, if CC companies are allowed to continually post a CO which reduces your FICO instantly because its treated as a fresh CO?

Is this a "flaw" in the reporting system that perhaps needs to be addressed?

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It is seen by the scoring system as an increased effort (by the OC) to collect on the debt. That increases your overall credit risk and lowers your FICO scores. One should always seek to settle old debts such as this in order to stop the updating when trying to rebuild. That should be one of the primary goals when rebuilding.

[Erick12]

You still owe them money. This isn't old. You haven't repaired your credit. Every month, you still owe them money, so this is not something in the past, since right now, today, you owe them money. You want a CO to diminish in effect, you have to pay it.

[surferchris]

Here's how to fix it:

Googe American Express Oasis Program.  Get the phone number.

Contact AMEX and enroll in that program.  If whoever answers can't enroll you, then hang up and phone again until you get someone who can help you.

Once you complete the program (pay AMEX), AMEX will give a credit limit up to 50% of what you had before.  Then you will be back in good graces with AMEX and start correcting the problem.

Good luck and let us know what happens.

[surferchris]

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@surferchris wrote:

Here's how to fix it:

Googe American Express Oasis Program.  Get the phone number.

Contact AMEX and enroll in that program.  If whoever answers can't enroll you, then hang up and phone again until you get someone who can help you.

Once you complete the program (pay AMEX), AMEX will give a credit limit up to 50% of what you had before.  Then you will be back in good graces with AMEX and start correcting the problem.

Good luck and let us know what happens.

---

If whoever answers does not understand in regards the Oasis program, you can also mention the Optima card program...

[deltagirl99]

Gentlemen, your comments woudl be valid except that once a CO the file is CLOSED.  There is NO WAY of settling this with any sort of payment.  Not sure if I mentioned it, but I had contacted them approx 2 years ago after I got employment and was back on my feet, and they told me that there is NO WAY to pay an account once it is CO.  I offered to pay 100% and it was no use....again they repeated that once CO there was no way to pay.  Apparently they never sold the debt, and even if they did, I might be able to pay the new owner of the debt, but that still would not affect the AM EX CO.

Perhaps I am overeading some of the other comments, but their appeared to be "tinges" of moralitly associated with a CO.  It would be impossible to level any sort of moral judgement on ANYONE who goes through this.  Even companies go through settlements, and creditors or bondholders take haircuts.  I am sure most of the time people default it is because of unforeseen circumstances.....just like businesses who run into hard times and have to restructure debt.

In my case I was laid off and even though I had savings for 12 monhts that was not enough.  I went through nearly 100K in savings trying to stay afloat while I looked for work.  There is a BIG difference getting laid off from a six figure job only to get the MAXIMUM of 250$ a WEEK unemployment when you have living expenses that are obviously far greater.

I didnt get help with TARP.....but AM EX did.  If I was given a small loan, I would have no problem whatsoever getting through this.....but once I was unemployed the bank found out and closed my HELOC....something that most people are not aware in their HELOC documents where the bank is allowed to close or limit it for any reason.

The bottom line is, America is a great place as far as risks are built into the financial system so that people do take risks.  I would have had enough to carry me through if it were not for a new business that I opened, and put a lot of money into it before the financial crisis happened. 

What it did teach me however is that I never want to be in such a postion again, and now I am debt free except for my mortage.

I feel sorry for people who live pay check to paycheck, thier the ones who are truly hurt for the long run after these events that are no fault of their own.

AM EX stock has fallen for a reason.  I obviusly have a lot of people in my circle who had difficult times through the crisis and everyone talkes about how badly AM EX treated them.  Non of them or myself will ever use an AM EX card again......I put over a 100K a year on my platinum card, for over a decade.......but after this you could not pay me to carry an AM card ever again.  Briefly I will tell you what these people did......I had a Platium card with both a Flex balance and a monthly balance.  I never went behind, and I needed that card for business.  I always paid the 30 day balance which was 10 - 15K per month on time.  However one month they TOOK my 30 day balance payment and applied it against my Flex balance which was 15K at the time, then came after me for the 30 day balance, saying that they wanted to close the FLEX balance because they found out I lost my main job and directed my 30 payment against the Flex balance.

That created a snowbal effect that super excalated my defaults, because they sued me for the 30 day balance.

Once that happened I had no LOC to work in my second business and could no longer purchase goods for resale.

I dont know if that is clear or not, but its not always black and white.

Well thats my opinion for what its worth.

[JayTee1]

I would have to agree that if a company marks your account as "charged off" with a $0 balance and in addition to that, tells you it is impossible to pay anything because the balance owed is $0, they shouldn't be able to do anything to your credit report after the chargeoff date, especially updating it somehow.  What is there to update?

I understand that "chargeoff" is an accounting term, and the debt is still owed, but if a company is absolutely telling someone they cannot accept any money for the debt and simultaneously updating the account as "currently delinquent," that seems unnecessarily punitive, and I would think illegal.

I'd be curious to hear from someone who can explain.

[deltagirl99]

The way that I understand it.....once charged off, it means they have taken an accounting loss on the debt, and while they could still take a payment and then repost the loss to a credit, large corporations dont do it as it is not worth the trouble.

At the time I did settlements with 5 credit cards, inlcluding 2 AM EX Platinum cards.  I did 80% settlements on those and with Discover and Bank of America.  By the way. Bof A was INCREDIBLY understanding, they even worked out an 8 month repayment plan on the settlement.  I remember at the time it almost brought me to tears how respectful they were.  AM EX and DISCOVER were just plain evil.  They both served me with papers even though I was trying to work out a plan with them, and if it were not for my attorney I dont think I would have got the settlement....but it was cash in one lump sum.  In the end I had a limited amount of money and settled everything except 2 small green corporate cards each for less than 2000$.  They would not work out anything with them...nothing....and I simply had no choice but to let those go.

So I guess this is there way of punishing me.,.....because they DO NOT report the others that I settled on....the reporting/refresh ended back nearly 4 years ago, but on the 2 small AM EX balances, they've reported/refreshed every 8 months or so.

I know were getting off topic a bit, but anyway I think we now know there is nothing that can be done......thankfully these will all drop off my report in just under 2 years from now.

[Geordi]

Well, there are chargeoffs and then there is American Express.

American Express is a different animal when it comes to chargeoffs.  If either you reach out to Amex or they or their collection agency reaches out to you, you shall be presented with an opportunity to repay your charged off debt.

After the payment is complete, American Express shall either give you an Optima card with a credit limit of approximately one half of your previous limit or they might re-open your account. Yes the Optima Oasis program has evolved since it first came about.

Recently you can get credit line increases and even product change your Oasis-based Optima card after 12 months.

If you were to search the forums and read up on Optima Oasis, you would find that with American Express there is life after a chargeoff.

Some people just wait until the degrogatory tradeline falls off there report. And then sometime in the far future, they apply again to Amex to see if they are blacklisted.

But as others have said, with American Express there is life after a chargeoff. I, myself, am in the Optima program after a chargeoff.

But truth be told, a chargeoff does not mean you do not owe the creditor money.  It only means that at some point in time they had deemed it as uncollectable.

• You owed the $$$ before it ever went delinquent...
• You owed the $$$ after it went delinquent...
• You owed the $$$ after it was chargedoff...
• You will owe the $$$ after it falls off your credit reports..

No need to get upset, we are all one happy credit repairing family 

[Geordi]

Well, there are chargeoffs and then there is American Express.

American Express is a different animal when it comes to chargeoffs.  If either you reach out to Amex or they or their collection agency reaches out to you, you shall be presented with an opportunity to repay your charged off debt.

After the payment is complete, American Express shall either give you an Optima card with a credit limit of approximately one half of your previous limit or they might re-open your account. Yes the Optima Oasis program has evolved since it first came about.

Recently you can get credit line increases and even product change your Oasis-based Optima card after 12 months.

If you were to search the forums and read up on Optima Oasis, you would find that with American Express there is life after a chargeoff.

Some people just wait until the degrogatory tradeline falls off there report. And then sometime in the far future, they apply again to Amex to see if they are blacklisted.

But as others have said, with American Express there is life after a chargeoff. I, myself, am in the Optima program after a chargeoff.

But truth be told, a chargeoff does not mean you do not owe the creditor money.  It only means that at some point in time they had deemed it as uncollectable.

You owed the $$$ before it ever went delinquent...

You owed the $$$ after it went delinquent...

You owed the $$$ after it was chargedoff...

You will owe the $$$ after it falls off your credit reports..

No need to get upset, we are all one happy credit repairing family