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What to do with this charge off

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Anonymous
Not applicable

What to do with this charge off

We have  a collection with frontier communications. From the CR looks like we made payments, but missed some random ones here and there. It says it was finally charged off for $14.00. But says paid in full. (Maybe that's normal to say that for a charge off?). This is approx 2 years ago.

Would a goodwill letter be the way to go, asking them to remove it? Or a PFD? 

I don't want to do more damage and have it dinged on my report and show it re-aged. I just don't k ow what to do about this one. 

Message 1 of 3
2 REPLIES 2
RobertEG
Legendary Contributor

Re: What to do with this charge off

For all practical purposes, the reporting of a charge-off simply records, in a consumer's credit file, a prior determination by a creditor that, at a prior point in time, they reached a determination that the consumer was unlikely to pay the debt.  It is that determination that then permts them to shift the debt in their accounting ledger from an asset to a liability, thus receiving a tax benefiit.  Later payment of the debt does not alter their having taken that action, and thus does not require deletion of the reporting of the CO.

However, payment of the debt means the debt was satisfied after that accountng measure was taken.

 

Takomg a charge-off does not relieve a penny of the debt, and thus for all practical purposes does not alter reporting of debt owed and other derogs.

Paid in full is the reporting that the debt that just also happens to have been previously charged-off was subsequently paid.  That is not "normal" reporting for a charge-off, unless the consumer actually paid the debt.

 

If you did in fact pay the debt, then a PFD would no longer be possible, as there is no payment to offer in exchange for deletion of the reporting of the CO.

You would simply request their GW deletion.

Message 2 of 3
Anonymous
Not applicable

Re: What to do with this charge off


@RobertEG wrote:

For all practical purposes, the reporting of a charge-off simply records, in a consumer's credit file, a prior determination by a creditor that, at a prior point in time, they reached a determination that the consumer was unlikely to pay the debt.  It is that determination that then permts them to shift the debt in their accounting ledger from an asset to a liability, thus receiving a tax benefiit.  Later payment of the debt does not alter their having taken that action, and thus does not require deletion of the reporting of the CO.

However, payment of the debt means the debt was satisfied after that accountng measure was taken.

 

Takomg a charge-off does not relieve a penny of the debt, and thus for all practical purposes does not alter reporting of debt owed and other derogs.

Paid in full is the reporting that the debt that just also happens to have been previously charged-off was subsequently paid.  That is not "normal" reporting for a charge-off, unless the consumer actually paid the debt.

 

If you did in fact pay the debt, then a PFD would no longer be possible, as there is no payment to offer in exchange for deletion of the reporting of the CO.

You would simply request their GW deletion.


Thanks, thats what I needed to know. I  wasnt sure what that meant, and I cant remember what the deal was with this one. Looks like I must have payed them then. Crossing my fingers for  their cooperation with a DW letter!!! Thanks for the great info!

Message 3 of 3
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