Paying off charge offs/collections, re-aging concerns

[jordanen]

Wow, whatever Macy's...no second chance at all...no deal! This account can gladly age of.

SNB/MACYS  
PO BOX 17759
CLEARWATER, FL 33762 
Phone number not available
 
Date Opened: 03/07/2009
Responsibility: Individual Account
Account Type: Revolving Account
Loan Type: CHARGE ACCOUNT
 Balance: $564
Date Updated: 05/27/2010
Past Due: >$564<
 Pay Status: >Charged Off<
Date Closed: 05/27/2010
>Maximum Delinquency of 120 days in 03/2010 for $205 and in 04/2010 for $261<
 
Remarks: CLOSED BY CREDIT GRANTOR; >UNPAID BALANCE CHARGED OFF<
 
Estimated month and year that this item will be removed: 11/2016 
 
 

S**ew macy's!

[abbafan]

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@jordanen wrote:

Wow, I won't pay macy's then...that'll save me 1.2K. Sorry, I won't pay for a punishment. That makes no ethical, or mathematical sense. Is there any way to appeal or recon? If not, I'll remove macy's from my list of debts promptly.

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The only benefit of paying Macy's off in your case would be the removal of the account from your credit reports once you pay it off (PFD, that's if they agree to do that). This would most likely bump up your credit score which in my opinion is a worthy thing to do. Besides, the negative tradeline would be removed from your record. I owe Macy's around $1800 and I'm considering to save up and do PFD with them. Think about it. Not like you won't survive without a Macy's credit card in the future just because they'll blacklist you

[RobertEG]

There is always a benefit to paying delinquent debt, even if it has passed the SOL for your state or it has become excluded from your credit report.

Neither of those events discharges the debt itself.  It is still owed.

Bad things can still occur.

The owner or debt collector can continue to pull your credit report for purposes of collection on the debt.

Credit report exclusion is not absolute.  In future apps for credit, if for example you app for credit in the amount of $150K or more, a prospective creditor can request and receive a full-file credit report that includes any and all derogs reported to your file.

In future apps for credit, you may be asked to disclose any unpaid, delinquent debt.  Credit report exclusion of a reported CO or collection is not basis for omitting disclosure of the debt.  It is tnot the debt that ages off, it is the continued showing of derogs reported along the path of the debt.

Finally, OC accunts do not become deleted or excluded based on expiration of any credit report exclusion period.

Derogs become excluded, but the OC account continues unless deleted by the creditor.  While the showing of their prior CO will become excluded no later than 7 years plus 180 days from the DOFD, the account will still be absent a showing of paid, which can raise questions as to the status of the debt.

[jordanen]

OK, you guys do give a rather compelling case for paying off Macy's. It'll bea total waste of 1,200, but the previous post begs more questions. First, even if all dirrogs are paid, even macy's, if a full-file report is viewed, will every dirog I've ever had, regardless of paid-off dirogs, show up? So, I'll have about 60 dirogs held against me for the rest of my natural life, even if their paid? I hope this isn't the case at all...wow. If this is the case, please call Guinness World Records, I  believe I have the absolute worst credit report, ever, seriously. according to Credit Karma, I am absolutely NUMBER ONE out of all users for the most collection accounts. Here's a cut/paste.

You have the highest count of open collections accounts found among all members.

You and 0% of related members have 4+ open collections accounts. Anyone wanna call guinness?

    Oh, one more thing about Macy's...the store card might blacklist me, but would the macy's amex still work? I believe its amex. Theirs always other big department stores to buy clothes.

[jordanen]

I also have a question as to how to approach payihng off these debts. I've been approved for the cap1 secured CC. Should I do the normal thing-save money, call CA's, pay off debts.  Or, should I max out the secured card to a 3K limit, charge portions of the debts to pay down, thus establishing new credit history while paying down old debts simultaneously? Any thoughts, opinions, and suggestions welcomed!