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"Charged Off as Bad Debt Profit & Write-Off" Payments being made

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Anonymous
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"Charged Off as Bad Debt Profit & Write-Off" Payments being made

Hello, I am new to myFICO forums. I'm in the process of cleaning up some past credit issues. In 2013 when I purchased my first home, I purchased a water-softener system from a man who worked for Ameritek and was going door to door selling them. At that time -my husband and I did not qualify for their in-home financing therefore they found Preferred Credit (Open line of credit) who agreed to finance the equipment for the same monthly payment Amertiek had promised ($114/mo). I know it is not a high monthly payment, however in 2016 I defaulted due to my husbands change in employment. We were not prepared financially for the changes that had to take effect Smiley Sad. Last payment was made 9/2016 before it defaulted.

 

On March 2017 my husband called Preferred Credit to make a payment - he was told our account had been sent back to Ameritek (where we got the water softener from). My husband called Ameritek and they confirmed they had our account so my husband made a payment of the $114. The customer service rep told him IF we made 6 payments on time, they will consider giving us a discount and report our timely payments to the Credit Burearu. I was under the impression we were making the payments to Preferred Credit. It wasn't until  9/2017 when I requested copies of the receipts from 3/2017 - 9/2017 that I realized the payments were being made to Ameritek. (lack of communication on my end). So Ameritek sent me a copy of a letter they "sent" to Experian saying we had been making timely payments. However till this day there is no update on either one of our credit reports showing such payments. The last conversation we had with PC they said that once I pay in full to Ameritek then they (Prf. Crd) will get notification of payment received in full and they will then update their records. It shows as "Charged off as Bad Debt Profit & Write Off" but there is no indication of a missed payment OR payment received from 3/2017 - present.

 

I want to fix my credit and this one here is the one that is hurting me the MOST.

 

I am able to pay off the remaining balance of $3k just to get this off my back HOWEVER I dont know if I should just send the payment in full or if I should get something in writing per say stating the account will be updated? Any suggestions?

 

 

 

Message 1 of 7
6 REPLIES 6
gdale6
Moderator Emeritus

Re: "Charged Off as Bad Debt Profit & Write-Off" Payments being made

Who is reporting it Preferred Credit or Ameritek?

Message 2 of 7
Anonymous
Not applicable

Re: "Charged Off as Bad Debt Profit & Write-Off" Payments being made

 


Preferred Credit is the one reporting it. Ameritek does not appear at all on our CR.

Message 3 of 7
gdale6
Moderator Emeritus

Re: "Charged Off as Bad Debt Profit & Write-Off" Payments being made

@Anonymouswrote:

Preferred Credit is the one reporting it.

Ok, Ameritek cant update anything on PCs TL only PC can. What PC did was sell the note back to Ameritek and wash their hands of it. Ameritek cant send a letter to any CRA asking that it be updated they have to report their own TL and its subsequent payment history but they only can if they are subscribers to a CRAs services. Ameritek cannot make promises on behalf of PCs TL only PC can. If PC is showing 0 balance due then you have to go after that reporting with a GW letter asking for removal of it.

Message 4 of 7
Anonymous
Not applicable

Re: "Charged Off as Bad Debt Profit & Write-Off" Payments being made

PC shows "Recent balance of $5,905 as of 3/31/2017" and Status "Account charged off $5905 written off. $5,905 past due as of 3/2017".

 

We now owe $3k according to Ameritek.  I want to settle this debt and pay it in full BUT I want to make sure I am paying it so it can get closed. I am currently paying the $114/mo but I just want to get rid of this debt.

 

Message 5 of 7
gdale6
Moderator Emeritus

Re: "Charged Off as Bad Debt Profit & Write-Off" Payments being made


@Anonymouswrote:

PC shows "Recent balance of $5,905 as of 3/31/2017" and Status "Account charged off $5905 written off. $5,905 past due as of 3/2017".

 

We now owe $3k according to Ameritek.  I want to settle this debt and pay it in full BUT I want to make sure I am paying it so it can get closed. I am currently paying the $114/mo but I just want to get rid of this debt.

 


You want a commitment from PC that they will show it as 'paid in full was a co' once you pay it off or if you are going to offer  a less than full balance then it will need to say 'settled for less than full amount, was a CO' You really want to get this in writing and Ameritek cant guarantee they will do it. Interesting that they didnt sell the loan back to them thats what they did with me when I had a finance company finance my products for a customer, if the customer didnt pay I had to make them whole and take the loan back for what was due.

Message 6 of 7
Anonymous
Not applicable

Re: "Charged Off as Bad Debt Profit & Write-Off" Payments being made

 Would you happen to know if PC would "have" to take previous payments into consideration? Or would I have to pay the $5905 to them which is what they show as the balance owed? When it was transferred back to PC the balance was $5905, with the payments I've made recently, balance is now $3k (with Ameritek).

 

I am surprised as well that they didn't sell it back. But PC verbally stated that once they got notification that the balance is paid in full by Ameritek then they would update their records - just not sure how true that is. But as you recommended - committment.

Message 7 of 7
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