Creditor Charged-Off account after 90 days, is that legal?

[Anonymous]

I took a small loan from a credit union, then I moved 2,000 miles away, upon calling in to pay my bill on time, they inform me that they do not accept debit card payments, only someone physically walking in to pay it.  Since I have no one back there to do that for me, I cannot do this, I figure I should be back to the state soon so I'll take care of it then, not thinking they'll file **bleep** with the credit bureaus as they don't report to any of them for my on-time payments and my loan doesn't even show up or build my credit.  Well, things happened and I wasn't able to get back to the state, so at 60 days delinquent I call them up desperate for a way to pay this stupid bill, they say they can take a VISA card payment (funny, they said before they CAN'T take card payments?) so that's great except the problem is I have Mastercard, so does everyone I know who can help me.  So I can't pay, again.  So it ticks past 90 days late, I call them again about paying as I STILL have not gotten a chance to drive 2,000 miles BACK to pay them, they say "oh, well we can take a money order if you mail it in" I'm like are you serious, I could have done that 3 months ago, you said I needed to physically come there?  Then, I notice on my credit that they've hit my credit for about 100 points with a "Charge-off" at 90 days delinquent?  I've tried since then sending a goodwill/pay for delete letter, etc, they refuse to take it off my report, giving me bs that if I pay it off it will my credit score will go back.  As you all know, this is BS, that sh*t will stay on for 7 years.  Whats the best way to deal with this?  Did they violate anything by this?  I haven't paid them a dime yet because I'm holding the money as leverage until I know my options.  Thank you for reading this novel, any replies appreciated

[Anonymous]

I should add, I was about halfway through my loan term, ALL on-time payments when I moved.

[Anonymous]

I believe installment debt can be charged off at 120 days delinquent. You might want to check your payment history again. I suspect you might have hit the 120 days.

Regardless, moved or not, the burden is upon the debtor to make payments to the loan. In your shoes, I would have done everything in my power to get payment to them. It sucks, I agree, but I’m not sure you have any recourse against the lending institution.

[Anonymous]

So this credit union wouldn't accept a check/cashier's check/money order mailed to them?  What about a wire transfer?

[Anonymous]

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@Anonymous wrote:

So this credit union wouldn't accept a check/cashier's check/money order mailed to them?  What about a wire transfer?

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Or transfer money to your account at that credit union and then pay the loan from the account?  

I’ve never heard of a credit union that requires in person payments for loans (but I suppose one could exist). Even if it did require in person payment, this would have been spelled out in the loan’s terms and conditions and shouldn’t have been a shock then. 

[Anonymous]

Something tells me there is more to this story than what we can see.

[Remedios]

@Anonymous  Hi and welcome 

I'm curious, prior to the move, have you made any payments on this account and if so, how did you pay?  Did you ever make a payment on this loan? 

You did not state anywhere in your post you had to physically show up to make payments prior to changing residences.  

Was mailing a check never an option? That just seems like the most natural solution. 

[Anonymous]

I made a comment just below my post, yes I had been paying and all on-time payments.  The story is pretty long and no there's not "more to the story" but thanks for the unhelpful shadow-casting.  Yes, I had been going in there to make payments in person, no I was NOT told they could not accept debit cards payments at that time, I was told that LATER when I attempted to make payment over the phone, they said they couldn't, then later they said they CAN (though strangely only with VISA, which I don't have)?  Then AFTER it hurt my credit suddenly they have helpful solutions like I can send in a money order.  They should have told me that when I called the first few times.

[Anonymous]

Sorry that this has happened to you. Did they say specifically that it is charged off and the full balance has to be paid, or did they just ask for you to pay the past due balance on the loan? 

[Anonymous]

Foxy, thank you.  What happened was I had been in contact with them several times having every intention to pay, and getting bad information each time ("we only accept payments at the location" "we can accept debit card but only Visa") then after 90 days delinquency they said they can accept a money order, I said great thank you, intending to send them payment in full....and then before I did, I get a ding on my credit report for like 100 points, the info came just in time otherwise I wouldn't have the payment as leverage.  I sent a very nice letter thanking them for the loan and explained perfectly all that had transpired, and all I got was "oh you can pay us and then that will reflect on your credit report" when they REFUSE to do a goodwill or pay for delete, and know full well that charge-off will remain on my credit for 7 years.
The ironic part is I got this loan to BUILD credit, and not only did they report NONE of my on-time, but they pull this and then report it negatively prematurely when I had full intent to pay.