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New Member
nazzarella
Posts: 2
Registered: ‎04-18-2007

Paying Charged Off/Collection and not wanting it reported

I have an old account that went into default about 6 and a half years ago.  Though it is charged off, the original creditor (Capital One kept on increasing the value of the account -fees interest ??).  My credit scores are around 670, fair, but not good.
 
Anyway,  I was planning on waiting until it dropped off my credit report in December of 2007 (per the experian credit report), before buying a house, however, I really wanted to get a certain house that became available (estate sale, good price), so in order to get the mortgage I had to settle with the CA.  I figured that settling it would still be less of a hassle than being sued, and the longer I wait the more that weight would be over my shoulder, and I was really ready to get it over with, build some equity and get some tax deductions !
 
So now that I have made a deal and paid the CA, I am concerned on how this will affect my credit score.  I hope that in a few months, as I make my mortgage payment, it would counter any dip caused by re-activating that old account.  I am also hoping that it would still fall off my credit report 7 years from the date of default rather than from the date of settlement.  I am also considering asking the CA not to update my records, and have the charge off info fall off on its own in December.
 
What is your experience?
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: Paying Charged Off/Collection and not wanting it reported

You should negotiate a pay for delete. PM me if you want a sample letter. Paying it now will reset the date of last activity, thus starting the 7 yr clock over!!
 
 
Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007

Re: Paying Charged Off/Collection and not wanting it reported



Tuscani wrote:
You should negotiate a pay for delete. PM me if you want a sample letter. Paying it now will reset the date of last activity, thus starting the 7 yr clock over!!





The seven year clock is from the date of first delinquency, not the date the account is settled. Paying it won't reset the clock. It won't help your credit score either...in fact, your FICO is likely to take a small hit.

My advice is to just leave it alone. Time is about to take care of it for you.
- - - -
in a credit-scoring postnuclear Stone Age...
Established Member
BBOP
Posts: 13
Registered: ‎04-19-2007

Re: Paying Charged Off/Collection and not wanting it reported

If you must pay it for you to be "able" to buy the house then do it if you really "need" the house now. I would also consider the balance due on the account before proceeding. If I owed 10k-20k on an 6.5 year old acct I would wait the other 6 months before i brought the house and then use the 10-20k to lay my new home out..  :smileywink:
 
That is a POWER move!!
 
The other option to pay for delete is interesting.. I would like to learn more of the negotiating skills needed for that one.. What is PM I am a little green..
 
BBOP
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: Paying Charged Off/Collection and not wanting it reported

True.. but companies illegally reage all of the time.
 
A payment to the OC ( or anyone else ) AFTER chargeoff does NOT re age the SOL, either "legal" or reporting.

If you agreed to make a payment to "catch-up" your account BEFORE it was charged off, then THAT payment DID re-start BOTH the legal and reporting SOL.

Yes, if you "settle" it WILL go back on your report as a "paid" collection, plus you run the REAL risk of them filing the judgment ANYWAY and/or selling the "balance" to another CA.In THAT case, since you would have signed a NEW "settlement" agreement/contract, it will be LEGAL to report it for another 7 years.
New Member
nazzarella
Posts: 2
Registered: ‎04-18-2007

Re: Paying Charged Off/Collection and not wanting it reported

I ALLEGEDLY owed 10-20 K on the account, and settled it for less than 6K.  I couldn't get a pay for delete b/c the CA said that only the original creditor can do that.  The original creditor is Capital 1, they actually farm out the accounts to TrakAmerica, who farms it out to the various CA.  They are so many layers that it's very difficult to be able to talk to someone who can truly make a decision.  The CA blames TrakAmerica, TrakAmerica blames Crapital One, and Crapital One would transfer you back to the TrakAmerica.  However, I decided to settle b/c I will be getting a very good price on the house (estate sale) and I really needed the tax break and just to get this over with.
 
It seems that, unless my account is resold, the negative item should get off by the end of the year.  Should I start requesting that it be removed already?  I think that technically, it might have already been 7 years since it was first reported as past due.
 
Does anyone have sample letters on how to challenge the reporting period?  If the CA or Crapital One messes with me, I can mess back.  I already have a letter to my DA on their collection/intimidation techniques, I got the pre-payment agreement as "paid in full" once the payments are made, but after I made the payments, the letter I got was that the account was "settled as full."  I haven't used these against them yet, but I am keeping track and will send the complaint to the DA of my state, and the CA's state, as well as to the Capital One, but first, I want to get the mortgage ;-)
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: Paying Charged Off/Collection and not wanting it reported

The CA lied. If they put in on, they can take it off! They are several good templates over on creditboards.com
Moderator Emeritus
LadyFICO
Posts: 273
Registered: ‎04-13-2007

Re: Paying Charged Off/Collection and not wanting it reported

Just verify with the creditor that the date is the same date the bureau is planning to delete it. I have found descrepancies but you maybe able to use it to your advantage. If it is old enough and creditor no longer has proof of the debt they could delete it. If they agree to do so, just get it in writing.

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