Why do I have charge off's when accts were Paid in full? I have a few accounts that show up as charge offs on my credit history. The creditors offered me a deal. Pay off a % of your debt in a lump sum and we will forgive the rest. The agreements were verbal. Stupidly, I did and now I have charge off's. However, when I paid I wrote on the memo line of the checks "Paid in full" The checks were cashed without protest. Since they accepted my check as full payment, am I still legally liable for the difference? I live in NY if that makes a difference. I have been scared to challenge these debts. I have been in fear because I heard if I am in the wrong I could start the 7 yr removal time all over again and it's already been almost 4 yrs ago. Please help. Thanks a million! 
uptownbabe wrote:Why do I have charge off's when accts were Paid in full? I have a few accounts that show up as charge offs on my credit history. The creditors offered me a deal. Pay off a % of your debt in a lump sum and we will forgive the rest. The agreements were verbal. Stupidly, I did and now I have charge off's. However, when I paid I wrote on the memo line of the checks "Paid in full" The checks were cashed without protest. Since they accepted my check as full payment, am I still legally liable for the difference? I live in NY if that makes a difference. I have been scared to challenge these debts. I have been in fear because I heard if I am in the wrong I could start the 7 yr removal time all over again and it's already been almost 4 yrs ago. Please help. Thanks a million!
"Paid in full" or any other sort of restrictive endorsement generally won't work and may not carry any weight under law in your state.
Generally speaking, if you settled for less than the full amount, and you don't have anything in writing, then yes you are liable for the difference between what was owed and what you paid. Whether they decide to pursue it not, anyone's guess.
However, even if you had paid or do pay that difference, it's still going to report as a paid chargeoff and it won't help your credit score.
There is no danger, at all, of reseting the 7 year CRTP. It cannot be reset. SOL is a different matter.
The DOFD is the date of importance. 7.5 years from that date, and it drops from CRs--regardless of whether the SOL has passed or not.
Choices I see are:
a) Wait it out
b) Send a PFD letter. But you'll probably want it to be a PFD letter with a "soft touch". More GW than PFD.
PFD
GW