New CO from HSBC should I PFD??

[Anonymous]

So I'm finally able to pay off some of my debt so I disputed a few things on my experian report.  One of the disputes is the following HSBC debt.  It's an old debt but looks like it was just Charged Off.  I have the $$ to PIF on this one....should I send them a PFD???  Is it too late to PFD??  Should I wait???  My SOL is up in little over one year.  thanks in advance.

HSBC BANK                    
Status:  Account charged off. $1,752 written off. $2,529 past due as of Aug 2010.
Status Details:  This account is scheduled to continue on record until Aug 2014.

Date Opened:
08/2005
Reported Since:
08/2010
Date of Status:
08/2010
Last Reported:
08/2010
    
Type:
Revolving
Terms:
NA
Monthly Payment:
$0
Responsibility:
Individual
        
Credit Limit/Original Amount:
$1,800
High Balance:
$2,529
Recent Balance:
$2,529 as of 08/2010
Recent Payment:
$0
        
Your Statement:

Account information disputed by consumer (Meets requirement of the Fair Credit Reporting Act).

Creditor's Statement:  Account closed at credit grantor's request.

        
Account History:
Charge Off as of Aug 2010

        
        
Balance History:
08/2008   $2,529

        
        
As of Aug 2008 your credit limit/high balance was $1,800

[RobertEG]

Need more info in order to give good advice.

The account was opened in 8/2005.

What you have not provided is the date of your first default (DOFD) on the account, and the dates of any other delinquencies that occured prior to their charge-off.

Each of those dates has its own credit report drop off date, which is unrelated to your statute of limitations.

I would presume that the earliest possible delinquency on the account was probably around 10/2005.  Assume for purposes of this discussion, that they reported a 30-day late in 10/2005.  That late would remain until after 10/2012.  Assume that the next month, you remained delinquenct, and a 60-day late was reported.  That derog would then remain until 11/2012.  And so on.

Then they did a charge-off in 8/2010.  That is a separate and cumulative derog, with its falloff date of 7 1/2 years from your DOFD, which I presume was 10/2005.  Thus, the CO would remain until 4/2013.

You can always offer a PFD at any time.  A PFD is a private contract offer between you and the creditor.  It is not regulated by any federal or state law.  It is a civil contract offer.  However, they can choose to ignore it.  It is just a nonbinding offer. Then SOL becomes important, should they decide to sue you. 

SOL is a totally different issue that is unrelated to credit reporting and scoring.  Assuming, once again, that the first time you went into default with the OC was 10/2005, that would most likely be the trigger date for calculating expiration of your SOL.  But that varies by state law.  What state do you live in, what is their SOL term for revolving credit,and does your state provide for any reset of the SOL calculation date?  Upon what are you basing your assumption that the SOL expires in a little over a year?

When you make a PFD offer, it is not normally for account deletion, it is for the request of deletion of prior reporting of derogs. So, in your PFD offer, each derog for which you are requesting deletion needs to be individually specified, or a general  statement made that the agree to the deletion of any and all monthly delinquencies previouslly reported, and delttion of the reportiing of the charge-off.

[Anonymous]

Thanks for the thorough reply RobertEG

My DOFD was 11/2007.  I pulled my experian report on 08/05/2010 and this is what I pulled from the report at that time:

Status:  Account charged off. $2,529 written off. $2,529 past due as of Jun 2009.
Status Details:  This account is scheduled to continue on record until Sep 2014.
Account History:
Charge Off as of Jun 2009, Aug 2008, Jun 2008, May 2008
150 days past due as of Apr 2008
120 days past due as of Mar 2008
90 days past due as of Feb 2008
60 days past due as of Jan 2008
30 days past due as of Dec 2007

For SOL it's 4 years.  I took the CC loan while living in GA but now I live in TX where I BELIEVE the SOL for CC debt is 4 years in both states.  CAN ANYONE CONFIRM THIS??  I'm uncertain about the reset of the SOL because of my circumstances.

Any ideas?

Thanks again

[RobertEG]

Texas is the most liberal state credit reporting statute in the nation, and does not provide for any reset of SOL beyond the date of first cause of action, which in your case, was apparently 11/2007.  If the  TX period for SOL on revolving debt is, in fact, 4-years, the TX SOL would apparently kick in after 11/2011. So the threat of legal action could remain until 11/2011.  Keep that in mind in your PFD demands.

But creditors usually have the option of bringing legal action in either the state of your current residence or the state where the contract was originally agreed to. So I dont profess that TX law governs your SOL,.  I think it probably does, but transfer of residency is a more complex legal issue.

You need to consult with an attorney on your expiration of SOL due to shift of your residency from contract to legal action.

Based on your posted dates of delinquencies, you have, apart from any SOL issues, the following CR drop off dates under FCRA 605(a):

30-day late    12/2007       remains until after 12/2014

60-day late    1/2008       remains until after 1/2015

90-day late    2/2008       remains until after 2/2015

120-day late   3/2008       remains until after 3/2015

150-day late   4/2008      remains until after 4/2015

Charge off                         remains until 5/2015 (7 1/2 years from the DOFD of 11/2007)

[Anonymous]

Well, I certainly don't want to get sued by ANYONE but I would like to see me credit rise over the next few months in order to buy a home......

What do you think my chances are of contacting HSBC & offering a PFD or a removal of the baddies with a PIF?  

Do you think they will go for it or start legal action? 

Is it possible that my other creditors will see this and prompt them to start legal action also?

I suppose that I could PIF and the GW them but that just seems so uncertain......

Any ideas??

Thanks Again