Newbie with a serious question about how to handle a charge off account.

[orbpurple]

I want to first say thanks to anyone who reads this and thank you to those who have told the stories of the problems they have faced and how they went about getting resolution.

I will try to make this short so as to spare you the boredom. Basically I have negotiated a settlement with a utility (Frontier Communications) to accept less than the full amount they are requesting based on the fact that they failed to correctly deduct payment from my account. The previous utility (Verizon) was my service provider for DSL service until they sold there residential services to Frontier. While under Verizon I had ACH payments set up with them and they deducted my bill each month. I also had paperless statements because there was no need for me to waste paper since I could just audit my checking account. Once Frontier took over they were provided all the information including payment because they could see it on the account. The major problem I am facing is that they have reported as a charge-off on the account but they do not sell the account to another company, they handle the collection themselves. We both agreed on a settlement and Frontier is agreeing to provide letters stating that the account has been settled for full amount and stop all collection on the account. But I want them to remove it from my credit report and they are refusing arguing that they didnt do anything wrong with the reporting, even though they are willing to accept fault in billing and recurring payment issues. 

So, I plan to attach a letter to the payment I am sending tomorrow stating that by accepting this payment they agree to dismiss all future claims and collection activity and that by cashing the check they are accepting payment in full and settling the account with no further harm. Is there any language that I can use that states that cashing the check they agree to remove all negative reporting and actually be held accountable if they fail to do so? Please guys, I really need to get this off my credit report. My wife and I are about to refinance our mortgage and this has to go before we can do so.

[guiness56]

Hi and welcome to the forums.

Were they not taking out your payments?

As far as your question, what you are suggesting is a restrictive endorsement.  Some states do not allow them.  And in some states, all the creditor has to do is overwrite you and say they do not agree to your terms.  You need to check your state laws.

If they accepted fault in billing and recurring payment issues then I would file a complaint with the CFPB vs a restrictive endorsement.

[orbpurple]

Guiness,

No... they were not taking out the payments. When they took over the account from Verizon, they somehow managed to keep my payment information in the systems but failed to withdraw the monthly payment amount. Even speaking with the collections agent today and several managers, they all agreed that the payment information was on file but they also said that there records showed that "we had issues when processing your payments." I asked them if they had issues with the payment, why didnt they discuss that with me when I called in to report trouble with my DSL service and also why did they not cancel my service if they failed to receive payment after two months instead of 11, but the answer they gave me wasn't very logical. I have thought about filing a complaint with the CFPB but I am not sure what they can do about getting it removed from my credit report, thus the reason in trying to deal directly with Frontier in getting it removed.

Also, I am not well versed on state laws/code to know enough about what my rights are regarding restrictive endorsements, so where would I find something about that?

[guiness56]

Look up state revised codes and see where that gets you.

Or tell me what state you are in and I will look for you,

[orbpurple]

Guiness,

I am in WV. And thank you so much for your help! I greatly appreciate any help you can provide.

[guiness56]

WV does not allow them:  Item b.

§46-3-206. Restrictive indorsement.

(a) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument.

(b) An indorsement stating a condition to the right of the indorsee to receive payment does not affect the right of the indorsee to enforce the instrument. A person paying the instrument or taking it for value or collection may disregard the condition, and the rights and liabilities of that person are not affected by whether the condition has been fulfilled.

[orbpurple]

Guiness,

Thanks so much for looking that up for me. Do you have any advice or recommendation on what I can do to get this off my credit report?

[guiness56]

You can try a BBB complaint for poor business practices.  It may or may not work.

Other than that, a CFPB complaint.

[orbpurple]

Guiness,

Thanks so much for all your help. I will definitely give them both a whirl. Frontier isn't registered with the BBB, but that shouldn't hamper a complaint being filed with them against the business.