One real BADDIE - w/ CrapOne, no less

[Anonymous]

I had an ex run up my CrapOne account to $16k in 2001 before I shut her off; divorce ensued, I was left holding the bag w/o a pot to piss in; couldn't make pmts on the acct for some time. Explained it all to CapOne rep, asked for some leniency, they wouldn't budge. After countless annoying calls from them, I told them to leave me alone and not call me anymore. Their response was to report it as a charge off, but they took a year to do that. In the meantime, they must have maxed out my rate, and when the acct went inactive in Aug. '02, the balance was $23k.

Recently I was able, with great effort and assistance by a very capable and understanding mortgage broker, to do a refinance cash out for $60k to make renovations on my townhouse. During that process, I discovered that CrapOne was reporting the bad debt monthly.

I was told that what that meant was that my "7 years" was starting over each time the bad debt was reported.

Is that true? Does that mean this blemish is not going away soon? It is the only serious negative on my credit history, and the only others are a couple 30 days past due that all occurred 4 years ago at the same time as my divorce.

What action would you recommend on my part to begin fixing this mess? I'm not in any position to pay off the account or to make a serious offer for a fractional payoff. I am however, in a position to begin paying on it, but if they're not going to engage in any give and take with me, I don't see much point in it. I can live without the credit, I seem to be able to get what I need, albeit not at the best rates, but my 620 makes me feel vulnerable were some disaster to strike.

[athensguy]

The whole tradeline should go away 7 years from 180 days after the first time you were late and didn't catch back up. However, did you look at a real report? annualcreditreport.com type, or at least direct from the CRAs? They should not be reporting CO or lates after the first CO. Do you know your SOL? If you're past that, you might want to dispute if they really are continually dropping lates on you.

[Schoolbuskid]

Like athensguy said it will stay on for 7 years and 180 days after your date of first deliquency, sometimes they fall off sooner...i would not begin making payment on the account because that can reset your SOL, if it has already expired...you really need to get a good look at your reports and find out what your SOL is!

Good Luck!

[Anonymous]

No, CapOne cannot keep re-aging the debt like that. They charged it off, which fixes the DOFD from your first late payment that led up to the CO. They can't keep moving the goalposts, and if they do, you can sue them.

Bear in mind, however, that if you're within SOL they can also sue you...so it's a delicate balance.

[Anonymous]

Thanks to all for the suggestions. We're in the process of moving, living out of boxes until closing, so paperwork is in a couple different places.

I am using real credit reports from all three CRA's. I'll verify all dates and then just stay quiet until SOL is up, then consult back on methods to clear the credit report of all the improper reports - unless advised that there's a better approach.

Thanks again.