Removal of Delinquent Accounts - Tactical Advice Needed!

[CreditNovice248]

I am hoping to start 2013 off on the right track ...so here's to a new year!

After perusing through the forum for the past 2 weeks, I think my first plan of attack is going to be submitting a combination of DV's, GW's and PFD letters.

I am however curious as to how to handle accounts that have been charged-off and purchased by another company. If I am successful at having the current collection agency remove it from their system, what incentive would my original creditor have to remove the delinquency from my credit report??? They no longer own the debt and therefore could care less.

HELP!!! I need to come up with a carefully crafted tactic.

[llecs]

The only thing that can be done is to send a GW. In the OC's eyes it is paid when they sold it. There are success stories in here of paid COs being deleted via GWs even though the poster never paid the OC.

[CreditNovice248]

Great sound advice, thanks!

[fishbjc]

If the oc sells the acct to a ca, why does the oc report the orig balance insteadof zero since it was sold.  Just confusing isn't it?

[llecs]

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@fishbjc wrote:

If the oc sells the acct to a ca, why does the oc report the orig balance insteadof zero since it was sold.  Just confusing isn't it?

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OCs will post the org. balance but that has no bearing on FICO scoring or, I'd argue, a manual review by a future creditor. They zero in on the status (e.g. charged-off, settled, paid as agreed, etc.).

Now the current balance needs to be $0 or empty. Can't show an active balance if they sold it. I've had some of my CO'd creditors tell my they sold the account when in fact they still owned it and reported monthly.

[RobertEG]

The reporting of and original amount of a charge-off is stored under separate reporting codes, and remains in the consumer's credit file independent of subsequent events.

Upon sale of a debt, the debt balance on the OC account becomes $0.  That is reported by way of update of the current debt balance.  It has no effect on the separate reporting of the CO itself.

Once having taken a CO, the creditor recoups a portion of the loss by way of reporting the decrease in assets to the IRS, thus reducing taxes.

If they therafter sell the debt, it is considered "uncollectibe," and thus usually only recoups an additional pennies on the dollar.

The OC has thus almost always taken a net loss.  That fact, coupled with their having held that the debt has become uncollectible, does not usually foster a feeling of good-will in assisting the consumer by deletion of their reporting.  What incentive, from their view, can you offer to obtain their good-will?

[traveler2005]

I have an account that was charged off and sold to another company, which has since been paid, it was charged off and sold in 2009, but the OC has tacked on 3 90day lates in the past year or so to my account after it was charged off and the balance was 0 back in 2009 . is this legal?????

[RobertEG]

After sale of the debt, you no longer have any debt with them upon which to base a delinquency in payment.

If the reported delinquency clearly identified its date as occuring after they no longer owned the debt, I would send them a direct dispute.

They can correct by deletion of those lates without being compelled to delete the charge-off.