Old Account...Should I PFD or wait for CA to report????

[tamdugg1980]

I may be to late on this one but, I have an CC account that is still reporting to the CRA should I send a  PFD or wait until the CA starts reporting?  Currently its states on each CR that it has been transfered or sold, but there is no CA listed as of today.  I'm sure there will be one sniffing around the corner, just not sure if I should attempt to send the PFD to the OC and cut the CA off at the pass.  

[fot1]

Usually it is best to  deal with the OC. Call them and see if they can pull back the account from the CA. If not they should tell you who they sold the debt to.. Then you could try a" pay for not reporting" letter with the CA. I wouldn't wait for the CA to report, as that will further hurt your score.

[tamdugg1980]

How should I address the OC?  Should I let them know that I want to settle the account?  Wouldn't that then tip my hand as far as being able to negotiate a settlement amount?  

[fot1]

I would write something like this..

Upon revew of my credit file I noticed an entry from______ listed as past due/ Charged off/ whatever . I am willing to pay this account a one time payment of _____ if you agree to removefrom my credit reports ,  stop any or all third party collection attempts and to mail on company letter head to myself  stating this account has been paid in full and no further balance is owed and will be removed from my credit reports within 30 days. The purpose of this settlement is merely to have this item removed  from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

Something like that.. tweak it  for your needs

[rckstrscott]

If it has been sold or transfered to another entitty, the OC is out of the equasion now in regards to payment and GW is the only option to get that trade line removed. A settlement offer will fall on deaf ears. Usually charge off debt like this is sold, not assigned. Obviously if it assigned you can try the PFD model but I doubt it will work.

It doesn't hurt to find out, but a PFD isn't going to work if they have sold the account. You need to find out who has the account now.

-scott

[tamdugg1980]

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@rckstrscott wrote:

If it has been sold or transfered to another entitty, the OC is out of the equasion now in regards to payment and GW is the only option to get that trade line removed. A settlement offer will fall on deaf ears. Usually charge off debt like this is sold, not assigned. Obviously if it assigned you can try the PFD model but I doubt it will work.

-scott

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Per my credit report, it says it was sold to another lender (assuming that would be a CA).  Nothing has been listed as of today though.  As I stated in my original post, it is only a matter of time before it shows up on my report.  How would I go about finding out who the CA is?  Should I contact the OC for that information?  

Since it is with a CA will it be a little easier to negotiate a settlement and PFD?  The last date of activity on this debt was Oct of 2005, so it is slated to fall off my report next year.  I know the CA only pay a few cents on the dollar for debts this old.  I don't want to think in these terms, but I may have the upper hand in this negotiation wise, no?  I would rather cut them off at the pass and try to catch it before it hits my report though.  Decisions...decisions!  

[RobertEG]

Original creditors dont report sale of debt to the CRAs,  There is no reporting code for such a matter, as it is entirely an internal business matter of the creditor.

All the CRA is made aware of is that the debt has been referred of assigned for collection.  That might have come about based on sale of the debt.

The normal way that credit reporting can indicate sale of the debt is if the OC updates the amount of debt balance under their account to $0, and you did not pay that debt.

That is indirect reporting that the OC no longer owns the debt.

YOu dont want the debt collector to report!  Find out who they are, and make efforts to take care of it before they report. 

Paying the OC may prevent reporting of a collection, but not necessarily. From the day they have collection authority, reporting of that authority to the CRA is proper.  The OC cannot limit the ability of the debt collector to report their collection, if they so desire.

They could even report it after you pay the OC, but most likely wont report if the debt is satisfied, as their reporting wont have the normal purpose of using it to assist in collection of the debt. 

I would jump on this before it reports.

[tamdugg1980]

Per my scorewatch report it says the account has been transfered or sold.  

Needless to say, I will contact the OC tomorrow to see if there is anyway I can either work out an arrangement with them to settle and delete or find out who the CA they assigned or sold the debt to.  There is no longer a balance showing, as there was a balance showing on my previous report.  

Thanks for all your help!!!!  I'll keep you posted on the progress!