topic Re: Charge Off advice in Rebuilding Your Credit

Charge Off advice

Anonymous — Mon, 24 May 2021 03:26:53 GMT

Hello all! Been somewhat of a lurker of the board and finally became a full member of board the monitoring and community as I need to rebuild properly.

I've recently been able to payoff all my collections which should be deleted soon as stated by CAs. However I have 2 charge offs showing as closed accounts on my report. One is there but says last reported in Oct 2016. The other however was last reported this month.

The one still reporting is First Premier. It's reporting as "charged off as bad debt, loss to credit grantor". The issue I'm having is they are the OC and continue to report but True Accord is the CA and have been reaching out to me by email. True Accord has offered me a settlement to close the collection but they state clearly on their website they dont report. I can afford to pay the settlement or pay in full. I'm just not sure how to get the CO removed and who to pay.

Any advice with this would be greatly appreciated. I'm learning slowly but surely and don't want to make any preventable mistakes.

Re: Charge Off advice

Brian_Earl_Spilner — Mon, 24 May 2021 03:30:34 GMT

OCs almost never remove their accounts. You would need to get First Premier to recall the debt and then negotiate a PFD.

Re: Charge Off advice

Anonymous — Mon, 24 May 2021 03:44:03 GMT

@Brian_Earl_Spilner wrote:
OCs almost never remove their accounts. You would need to get First Premier to recall the debt and then negotiate a PFD.

It would appear I haven't learned as much I thought because I'm unaware of having an OC recall debt. I will do a little research on that topic. Thank you for your suggestion.

Re: Charge Off advice

GrandBay — Mon, 24 May 2021 03:56:20 GMT

@Brian_Earl_Spilner trying to find your Macy's & Nordstrom threads.

Re: Charge Off advice

Brian_Earl_Spilner — Mon, 24 May 2021 03:58:28 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
OCs almost never remove their accounts. You would need to get First Premier to recall the debt and then negotiate a PFD.

It would appear I haven't learned as much I thought because I'm unaware of having an OC recall debt. I will do a little research on that topic. Thank you for your suggestion.

It's simple. Occasionally, an OC will hire a CA to collect resulting in 2 credit report entries for the same derogatory event. In order to remove the CA, you ask the OC to recall the debt in exchange for payment leaving the OC reporting. Very rarely will you get a OC to remove theirs as well.

Another example where this would be used is with medical or utility bills. The OC normally wouldn't report, but the CA would. Asking for recall would remove the blemish as if it never happened.

Re: Charge Off advice

Brian_Earl_Spilner — Mon, 24 May 2021 04:04:59 GMT

@GrandBay wrote:
@Brian_Earl_Spilner trying to find your Macy's & Nordstrom threads.

Nordstrom: https://ficoforums.myfico.com/t5/Credit-Card-Approvals/Drunken-Nordstrom-Apping-UPDATE-4-28-19/m-p/5583694

Pretty sure you saw the other one because of the R2 luggage

Re: Charge Off advice

OmarGB9 — Mon, 24 May 2021 04:07:51 GMT

@Brian_Earl_Spilner wrote:
@Anonymous wrote:
@Brian_Earl_Spilner wrote:
OCs almost never remove their accounts. You would need to get First Premier to recall the debt and then negotiate a PFD.

It would appear I haven't learned as much I thought because I'm unaware of having an OC recall debt. I will do a little research on that topic. Thank you for your suggestion.
It's simple. Occasionally, an OC will hire a CA to collect resulting in 2 credit report entries for the same derogatory event. In order to remove the CA, you ask the OC to recall the debt in exchange for payment leaving the OC reporting. Very rarely will you get a OC to remove theirs as well.

Another example where this would be used is with medical or utility bills. The OC normally wouldn't report, but the CA would. Asking for recall would remove the blemish as if it never happened.

But in this case, True Accord doesn't report anyway, so recalling would help only in the sense that OP would be able to negotiate directly with FP as opposed to going through True Accord.

OP, you can try getting the debt recalled, but if FP refuses, I'd still pay/settle and then try to ask FP for GW removal of the CO.

Re: Charge Off advice

Brian_Earl_Spilner — Mon, 24 May 2021 04:17:48 GMT

@OmarGB9 wrote:
@Brian_Earl_Spilner wrote:
@Anonymous wrote:
@Brian_Earl_Spilner wrote:
OCs almost never remove their accounts. You would need to get First Premier to recall the debt and then negotiate a PFD.

It would appear I haven't learned as much I thought because I'm unaware of having an OC recall debt. I will do a little research on that topic. Thank you for your suggestion.
It's simple. Occasionally, an OC will hire a CA to collect resulting in 2 credit report entries for the same derogatory event. In order to remove the CA, you ask the OC to recall the debt in exchange for payment leaving the OC reporting. Very rarely will you get a OC to remove theirs as well.

Another example where this would be used is with medical or utility bills. The OC normally wouldn't report, but the CA would. Asking for recall would remove the blemish as if it never happened.
But in this case, True Accord doesn't report anyway, so recalling would help only in the sense that OP would be able to negotiate directly with FP as opposed to going through True Accord.

OP, you can try getting the debt recalled, but if FP refuses, I'd still pay/settle and then try to ask FP for GW removal of the CO.

Correct, but the goal is to get a deletion. In order to even attempt negotiating, the debt needs to be recalled. If that fails, then a goodwill request will need to be made.

Re: Charge Off advice

Anonymous — Mon, 24 May 2021 04:22:52 GMT

@OmarGB9 wrote:
@Brian_Earl_Spilner wrote:
@Anonymous wrote:
@Brian_Earl_Spilner wrote:
OCs almost never remove their accounts. You would need to get First Premier to recall the debt and then negotiate a PFD.

It would appear I haven't learned as much I thought because I'm unaware of having an OC recall debt. I will do a little research on that topic. Thank you for your suggestion.
It's simple. Occasionally, an OC will hire a CA to collect resulting in 2 credit report entries for the same derogatory event. In order to remove the CA, you ask the OC to recall the debt in exchange for payment leaving the OC reporting. Very rarely will you get a OC to remove theirs as well.

Another example where this would be used is with medical or utility bills. The OC normally wouldn't report, but the CA would. Asking for recall would remove the blemish as if it never happened.
But in this case, True Accord doesn't report anyway, so recalling would help only in the sense that OP would be able to negotiate directly with FP as opposed to going through True Accord.

OP, you can try getting the debt recalled, but if FP refuses, I'd still pay/settle and then try to ask FP for GW removal of the CO.

Thank you very much for your imput. It seems as you've both stated the first step is attempting to get the debt recalled. I'll see how that goes and either way keep you guys updated as you took time to reply. Thank you very much

Re: Charge Off advice

H_you — Thu, 27 May 2021 00:05:08 GMT

A little confused on this. True Accord is a third party CA. Which means OC does not own the debt any more. Why would OC still be reporting to agencies currently? FCRA violation?

Re: Charge Off advice

OmarGB9 — Thu, 27 May 2021 00:49:19 GMT

@H_you wrote:
A little confused on this. True Accord is a third party CA. Which means OC does not own the debt any more. Why would OC still be reporting to agencies currently? FCRA violation?

OCs can hire third party CAs to collect on their behalf while retaining ownership of the debt. OCs don't always sell their delinquent debts.

Re: Charge Off advice

Slabenstein — Thu, 27 May 2021 01:38:08 GMT

@H_you wrote:
A little confused on this. True Accord is a third party CA. Which means OC does not own the debt any more. Why would OC still be reporting to agencies currently? FCRA violation?

OC's can either sell a bad debt to a CA, in which case they no longer own it, or assign the debt to CA for collection while retaining ownership. In either case, the OC CO and the CA can both report as tradelines since they represent different delinquency statuses. In the case of a debt that is sold I believe that only the CA can report a balance, but I'm not sure about assigned collections that the OC still owns.

Re: Charge Off advice

H_you — Thu, 27 May 2021 03:12:20 GMT

Transfer or sale tho...right? If a third party is hired to collect that third party should be reporting it and not the OC? I'm asking because one of my collections is doing this same thing. Affirm is OC and True Accord is CA. While At&t and Verizon collections are reporting under 3rd Party's only. I'm genuinely confused by this practice. Are they both valid allowed practices for reporting? Or is one wrong while the others are correct?

Re: Charge Off advice

H_you — Thu, 27 May 2021 03:14:52 GMT

Ok. Thanks for clearing it up

Re: Charge Off advice

Slabenstein — Thu, 27 May 2021 03:17:12 GMT

@H_you wrote:
Transfer or sale tho...right? If a third party is hired to collect that third party should be reporting it and not the OC? I'm asking because one of my collections is doing this same thing. Affirm is OC and True Accord is CA. While At&t and Verizon collections are reporting under 3rd Party's only. I'm genuinely confused by this practice. Are they both valid allowed practices for reporting? Or is one wrong while the others are correct?

Both are correct, because of the different nature of the OC's. Your Affirm CO is a credit tradeline and so reports to the bureaus, as does the True Accord CA for it. AT&T and Verizon accounts are not credit tradelines and so will not normally appear on your credit report on their own, so there is no OC CO tradeline. But the collection accounts for your delinquencies with them are reportable tradelines and do appear.