topic Re: Charge Off Question in Rebuilding Your Credit

Charge Off Question

Anonymous — Fri, 18 Jun 2021 01:13:02 GMT

I have at least 5 charge offs on my credit report that I did settle. The balance on credit reports state $0 but the status is charge off and remarks say " written off or sold to another party".

My question is do I submit written disputes and proof that I paid these with the "other lender" that is was sold to? The companies that I paid are not listed on my credit report.

I am just not sure if it affects the score. I guess I would like to see it say, "settled for lesser amount" rather than sold to another lender after charge off.

Thanks in advance!

Re: Charge Off Question

OmarGB9 — Fri, 18 Jun 2021 01:43:51 GMT

Remarks don't affect score.

Re: Charge Off Question

RobertEG — Fri, 18 Jun 2021 04:47:17 GMT

When a delinquent debt with an orginal creditor s sold to another party, there is no longe a debt owed to the original creditor.The original credtior is required, per the common credit reporting manual, to report a $0 balance on their account. That is proper.

The reporting of $0 does not mean the debt was paid, it only means it is no longer owed to them.

If the new owner chooses not to report to a CRA, then subsequent shwoing of payment of the debt will not be shown in rhe consumer's credit file/report. That is common and proper.

If the consumer is ever questioned regarding payment of the debt, they can separately show payment to the new owner via copies of busineess records.

There is no inaccuracy in reporting, and thus no basis for filing a dispute seeking any correction.

Re: Charge Off Question

vntrsc — Fri, 18 Jun 2021 10:37:20 GMT

As indicated by your credit report, the original creditors no longer own the accounts and, therefore, no longer have anything to do with them because they were sold to debt buyers. Paying the new owners has no effect on the original creditors' entries. The cannot report that the accounts were settled and/or paid.

Re: Charge Off Question

Anonymous — Tue, 22 Jun 2021 04:32:56 GMT

Mines also belonged to a CA but when I settled with them, the balance was updated in two weeks although the CAs don't show up on my credit report. It shows up as Capital One.

Re: Charge Off Question

vntrsc — Tue, 22 Jun 2021 12:52:57 GMT

@Anonymous wrote:
Mines also belonged to a CA but when I settled with them, the balance was updated in two weeks although the CAs don't show up on my credit report. It shows up as Capital One.

Then the account did not "belong" to the CA. It was still owned by Capital One. Capital One did not sell the account. It merely hired a CA to collect.

Not all CAs buy debts. Some strictly contract to collect for original creditors and any money paid by consumers goes to the original creditors.