charge off - to pay or not to pay.....

[Anonymous]

Hi - I have a CO quandry - DH has a small balance on a CO from a well known mail-order company - the account was opened about two and a half years ago, and was written off in 08 - we have since been making regular payments and the balance is down to $65 - we sent a PFD letter and got back a verification - sent again and send a combo GW/pfd to company pres - haven't heard from him but got a really snarky letter from credit dept yesterday saying they don't think it is appropriate to exchange alteration or deletion of info for payment -

My main concern is that I ran the simulator on creditkeeper for it, and to leave it as is has a fairly small impact, but to pay it off and have it remain as a paid derg causes something like a 44 point decrease in score - does anyone have any thoughts on where to go from here?  We would like to refi as soon as we can get the scores high enough to get back into prime rates, and the thought of losing so many hard fought for points is agonizing.......    

[Anonymous]

another related question to this issue - please correct me if I am wrong - it is my understanding that where the making of payments on an account can reset the clock for the SOL, it doesn't have any impact on a CO - so, if that is correct, would the clock start on the six months after the first default and continue (in our state for three years) regardless of payments being made?

[JoeBJay20]

It depends on the laws of your state, but generally making payments on a delinquent account resets the SOL. 

[Anonymous]

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@Anonymous wrote:
another related question to this issue - please correct me if I am wrong - it is my understanding that where the making of payments on an account can reset the clock for the SOL, it doesn't have any impact on a CO - so, if that is correct, would the clock start on the six months after the first default and continue (in our state for three years) regardless of payments being made?

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If the balance is down to $65, why worry about SOL?

Just pay it off and try for GW.

SInce it already shows CO, I don't understand how the simulator shows you losing 44 points for paying it off. My understanding is your score wont change at all unless it puts your utility under a certain %. Then it will go up.

[Anonymous]

Good point - I think I was thinking more interms of it staying on the repotrs longer rather than what teh SOL actually is - I don't think they will do much over $65 - it has stayed "in house" and they seem to just like being bitchy so why farm it out!  I don't think GW will be a possibility - they have not shown any thus far and no willingess to pfd -

The simulator blew my mind, which was what started it - I would pay it off tomorrow and to heck with them if I wan't afraid of the drop - SC has three years on the SOL - would that impact the amount of points lost if paid off before the SOL?  the simulator referred to the neg as having it listed as a paid derog - and I'm doubtful they would even agree to change it to paid as agreed......

[RobertEG]

There are two totally different,and totally unrelated "clocks" running.

Drop off from your credit report goes back only to the DOFD on the OC account, period, and is 7 1/2 years from that DOFD.

Expiratiuon of the SOL is related only to subsequent legal defense that you can take should legal action be brought against you.  It has absolutely no bearing upon credit reporting.

[Anonymous]

Then I suggest just paying it before the OC does decide to send it to a CA. Having the CO remain on your report is much better than having the CO and a CA.

Message Edited by scorerise on 07-01-2009 06:17 AM