Legality of Charge Off Removal

[Anonymous]

I spoke to an executive of the original creditor of a debt on my credit report. It's a paid debt (2 years ago), and listed as a 0 balance -- listed by the collection agency. The executive says he would remove it if he could, but he "can't." He says once it's on there, it's on for seven years and there's nothing he can do about it. I tried to explain that he certainly could tell the collection agency to remove it, but he continues to insist he can't. Can anyone direct me to a law or regulation -- or even a credible news article -- that says good will deletions and such are legal and/or commonplace? I need to somehow convince this guy that it's ok to remove the entry, even if he thinks there were no mistakes in the original reporting.

[guiness56]

There is no law that says that. 

The FCRA says if they report it must be accurate, it does not say they have to report.

The time to ask the OC to pull back the account from the CA would have been when you paid the OC the debt.  Part of the agreement would have been to recall it from the CA.

SInce it iwas paid 2 years ago, the OC has no legal right or GW to ask the CA to remove it now. You would need to send the CA a GW.

The same if the OC is still reporting, send them a GW.

[Anonymous]

Thanks for the response. But don't the CAs usually do what the OC wants with respect to removal, to keep their client happy? That's been my experience.

[guiness56]

Normally, I would say yes.  But this has been paid for 2 years.  I just don't see it.

Have you attempted a GW with the CA?

[Anonymous]

No. I sort of got hostile and legalistic with them before I knew about GWs. Only now getting a sense of how I should have approached this.

But they did say on the phone that if the right person at the OC told them to delete, they would. Just both places are huge bureaucracies.

[guiness56]

I think I would try a GW to the CA first.  If that gets you nowhere, then try a GW to the CEO of the OC.

Keep in mind, it is a good will letter. 

[PayYouNever]

So is the lesson here, to negotiate any delinquent debt payments with the OC

and part of the stipulated deal is to have the OC withdraw the account from a CA?

I feel that it's worth PIF the OC if it means getting the account pulled back from the CA.

[guiness56]

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@PayYouNever wrote:

So is the lesson here, to negotiate any delinquent debt payments with the OC

and part of the stipulated deal is to have the OC withdraw the account from a CA?

I feel that it's worth PIF the OC if it means getting the account pulled back from the CA.

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Yes.  It is always better to work with the OC anyway, if they will.  They can withdraw an account from the CA.

Once it is paid there is no incentive for them to do that.