04-02-2012 01:54 PM
I havea charge off from a utility company. $152 that we can now pay easily.
My questions are:
1. The original creditor is still listed as the reporting agency on his credit report. Will a PFD work?
2. We are in TX, SOL 4 years, the debt is only at 2 years. Will sending a PFD extend the SOL another 4 years?
3. If they do not respond/say no what happens? I have read over and over not to pay it unless they respond in writing.
4. Each report has a different address....which one do I send to? And none of them list the account number in full?
5. I will pay the utility company directly even though it has been charged off?
Thanks in advance so much!!
04-02-2012 02:10 PM
04-02-2012 05:42 PM
The fact that it was charged-off really has no effect as to how you proceed, other than asking them to delete the reported CO.
Debt charged-off by a creditor is still debt that can be pursued in its entirety.
If you offer a PFD, include the statement that the offer is not an admission of debt, but rather merely to resolve the issue.
A PFD is a private contract offer, and they have no requirement to respond. One issue with a PFD while the debt is still within SOL is that it raises a review of your account, and they have the alternative to pursue the debt via legal action. So the options are not all yours, and there is some risk involved. However, you can always PIF at any time, and avoid a judgement, so the risk is not huge.
The normal progression of a charge-off is that they want it gone, as accepting payment requires a bit of accounting on their part to adjust the prior charge-off they reported to the IRS based on later acceptance of the income. They usually sell it to a debt collector. If that occurs, you will get an additionaly collection reported to your CR.
It is, in my opinion, smart to pay an unpaid charge-off, even without a PFD, to avoid further damage.
If the OC still owns the debt, they can always accept payment. If they sell it, they cant.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.