topic Re: A charge-off reversal is good, right? in General Credit Topics

A charge-off reversal is good, right?

Anonymous — Mon, 30 Jul 2007 20:55:00 GMT

So I had a CO on a Chase account. Inspired by this forum, I sent a PFD letter to the CA about a week ago, which resulted in the CA no longer calling my phone.

Today, I received two letters from Chase: One letter states that my account is closed, but I will soon receive a bill for the outstanding payment, and the second letter states that my CO will be reversed, and Chase has updated the credit bureaus.

I know this feels like some sort of a win, however, I was wondering if the account is going to stay on my credit report with a history of late payment. That can't be good right?

Also, shouldn't I have received a Scorewatch Alert by now?

Any advice will be appreciated. Thank you.

Re: A charge-off reversal is good, right?

CreditBob — Mon, 30 Jul 2007 22:09:27 GMT

It sounds like they will remove only the charge off status, show a zero balance, but any lates wills till show. I do believe that on a zero baalnce your score will go up.

Re: A charge-off reversal is good, right?

Anonymous — Mon, 30 Jul 2007 23:10:31 GMT

If the account is a bit older it should go up nicely mine have

from paying off the bad debt...

Re: A charge-off reversal is good, right?

Anonymous — Tue, 31 Jul 2007 00:47:45 GMT

Thanks for your help guys.

Is it still possible to negotiate with Chase to delete the account? I'm assuming that would give the best result possible.

Re: A charge-off reversal is good, right?

Anonymous — Tue, 31 Jul 2007 03:54:55 GMT

adrevolution wrote:
Thanks for your help guys.

Is it still possible to negotiate with Chase to delete the account? I'm assuming that would give the best result possible.

Unless it's an old account and then it your score might drop I think.

Re: A charge-off reversal is good, right?

Anonymous — Tue, 31 Jul 2007 13:09:59 GMT

Hmm, it's five years old, so that would be unfortunate. I'm just concerned that just paying off the card would leave those late payments on my record. That seems worse in the longer run.

Re: A charge-off reversal is good, right?

Anonymous — Tue, 31 Jul 2007 13:33:32 GMT

Paying off the debt thru the CC would remove the CA, and if they remove the CO status

then you would have a TL that goes back 5 years and shows paid, not two bad...

you were late so you have to live with that and a goodwill letter once it's paid may remove it but you will be in a better position than you are now, so take one step at a time and every thing you

do once paid would most likely improve your scores..

Re: A charge-off reversal is good, right?

Anonymous — Tue, 31 Jul 2007 13:43:47 GMT

adrevolution wrote:
Hmm, it's five years old, so that would be unfortunate. I'm just concerned that just paying off the card would leave those late payments on my record. That seems worse in the longer run.

It's really difficult to tell what will happen. Sometimes I feel there is really no rhyme or reason.

Re: A charge-off reversal is good, right?

Anonymous — Wed, 01 Aug 2007 02:25:47 GMT

@Anonymous wrote:
Paying off the debt thru the CC would remove the CA, and if they remove the CO status
then you would have a TL that goes back 5 years and shows paid, not two bad...
you were late so you have to live with that and a goodwill letter once it's paid may remove it but you will be in a better position than you are now, so take one step at a time and every thing you
do once paid would most likely improve your scores..

That makes a lot of sense. I would rather I paid the debt off anyway. Then, I guess, I have to rely on the good graces of the CC to get my scores up...

@daytona18wrote:
It's really difficult to tell what will happen. Sometimes I feel there is really no rhyme or reason.

I really hate how opaque the system is and how little is being done to change that.

Thank you both for your help.

Re: A charge-off reversal is good, right?

Anonymous — Wed, 01 Aug 2007 03:39:47 GMT

@Anonymous wrote:
Hmm, it's five years old, so that would be unfortunate. I'm just concerned that just paying off the card would leave those late payments on my record. That seems worse in the longer run.

However, it is still better than a chargeoff status. Chargeoffs and collections kill FICO scores

Re: A charge-off reversal is good, right?

Anonymous — Wed, 01 Aug 2007 17:07:45 GMT

Thanks cfstr1.

I ended up calling the Chase Recovery Dept. to inquire about the latest status of my account. The charge off reversal stands, but the account is permanently closed (emphasized by Chase).

On the bright side, the balance due is now half the original amount, and Chase will not report it past due. Now, I'm hoping they update the credit bureaus soon.

Thanks so much everyone for all your help so far. I would probably have exacerbated my credit problem without this forum's help. This baddie looks like it's going to be taken care of, and I just have one left. I'm trying my best to be patient and wait to check my new Fico scores in a few weeks.

Thanks again!

Re: A charge-off reversal is good, right?

Anonymous — Wed, 01 Aug 2007 22:05:42 GMT

I'm the same boat with Chase. The account is actually my friends and I was added as a authorized user. Someone it got changed to a joint account. The account is about four years old and its with a law firm that is suing my roommate. They tired to sue me but the suit got dismissed agianst me. Your PFD letter, did you offer a settlement or did you pay the full amount? Did Chase ever sell your account to a collection agency or did they keep it in house? Any info you have would be appreciated.

Re: A charge-off reversal is good, right?

Anonymous — Thu, 02 Aug 2007 00:49:30 GMT

In my PFD letter, I offered to pay the full amount. And Chase did sell my account to a CA. It was called Enhanced Recovery and based in FL.

Good luck in your negotiation. Chase can be stubborn, but don't give up.