Charge off question

[Anonymous]

About 6 months ago, I ran into some financial problems. I managed to pay everything on time but it was a struggle. Eventhough I ended up not being late I called BofA to discuss a workout on the two CCs that I had with them. The told me that because my accts weren't delinquent, they could not help me. After about 3 months and no relief, they offered to allow me to "settle" the accounts. Mind you, I was still on time with the payments. Because my finances were not stable, I bit the bullet and settled with them, for about 33 cents on the dollar. Now, whenever a lender pulls my credit, there are notations that I had serious delinquencies although each and ever account I have every had shows "paid as agreed". Even the BofA accts show as current although they are noted as "settled for less than full amount". One report, TU (I think), shows these accounts as Charge-offs. I have never ever been late even prior to settling these account. My scores took an 80 point dive to the mid 6's. Other creditors have raised my rates and/or reduced my limits. I really feel that the delinquency notations are extremely inaccurate but they are not on any individual trade-line. So I don't know what exactly I can dispute since everything else is accurate. Any suggestions would be helpful.

[AndySoCal]

The serious delinquencies the credit report(s) are referring to are the settled accounts. A settled account is considered a serious derogatory. Have you tried talking to B of A about paying it off in full in exchange for reporting it as paid as agreed and not settled?

Message Edited by AndySoCal on 05-11-2009 07:38 PM

[Anonymous]

Okay I get that..but how is it legal for a "delinquency" to be reported on my credit report when I was never delinquent in the true meaning of the word (late with payments)?  I can understand that the accounts show settled and I have accepted that it will take me some time to recover from this, but to be labeled as delinquent is what is irking me. Is there anything that I can do to rectify this?

[medicgrrl]

Even though you made your payments on time the lender is still having to charge them off as a bad debt because they were not PIF but settled.  I understand the confusion because you paid on time up until that point but once you settled the accounts they were no longer "paid as agreed".  As the PP suggested, try calling them and see if you PIF will they update to show paid as agreed.