Need some help please

[Anonymous]

1). I have a Charged off Account with Americredit and it has a balance due. Since is has been 

     charged off that means that they got credit from Internal Revenue for that bad debt. How can they

     still have a balance reading on the report. It seems if they collect that money it should be tax fraud.

     Can I dispute this as balance incurrect due to that fact?

2). I just paid off all 3 of mine and my husbands credit cards, and I have paid off all the Collection

     accounts how much of an increase will I get from doing this? (around about)

3). How long does it normally take for the CB to remove these items.

Any Help would be greatly appricated.

We are trying to improve our scores as soon as we can like in the next 38 days. We do have a BK from August of 2000 and have some new credit since Nov of 2006. I really need help with this please.

Thanks,

Debbie  

Message Edited by nikkoslilmouse on 06-07-2007 06:38 AM

Message Edited by nikkoslilmouse on 06-07-2007 06:39 AM

[Anonymous]

the answer to question 1 is they can still show a balance due because you still owe the debt.  Just because it was charged off doesn't make it go away.  If you pay they will have to report it as an income.    If it hasn't been sent to a collection agency it might be wise to start paying on it before it does.  If it gets sent to a CA then they too can report it and it is a double whammy on your report. Not good.

2.  Paying off your credit cards will lower your utilization which will help your score, paying off collections does not.   FICO  doesn't reward points for paying off bad debts and in some cases it may lower your score since it appears to the computer as new transaction.  It stinks I know.  But hopefully the two will even themselves out and maybe the lower utiliztions will weigh heavier.   But on the bright side you have those collections gone and you can now answer the phone and go to your mailbox without seeing another collections letter.  That is always a good thing. 

It ususally take up to about 30 days to report,   after 30 days and nothing has been updated, dispute it with all three CRA's.   Good luck

[Anonymous]

BOSWD, I have letters from the Collection Agency stating that they will delete. I have one from all of them. Do you mean that they wont do this at the Credit Bureaus. I still have one with LVNV funding but I dont owe them that kind of money. I only owed Providian 368.00 that the insurance should have paid and now LVNV is saying we owe them 1400.00 that is bogus. Has anyone ever had them removed with out waiting the 7 yrs. According to the Credit Bureaus the date of last activity is listed as 10/2003 but I stopped making payments 11/2002 thats almost a whole year they are adding on. I could really use some help with this one.

[Anonymous]

I am no expert on flollowing up on getting your PFD's with the CA's  but you do have it in writing which is great.   What I would do is post this as a separate thread, on how to follow up on your PFD's, many here have got them and should be able to advise you on the proper channels to go through.    I am 1 for 5 on PFD and that one I got was by default,

As far as your Providian Balance, I would send them a DV letter, don't ask for it over the phone. send them a letter.  How old is the debt?  You have to remember that even though the original balance was only $368.00  interest and penalty's accrue each month and continue to accrue, and If this is a really old debt, that may not be too much off the mark.   But send them a DV letter and ask to have it itemized to see how they arrived at that balance.    You also need to get ahold of whatever Insurance company that said they were going to pay.   Prov and the CA don't care who pays them they just want their money, so the longer you sit on this debt the more and more the interest and plenty's will sky rocket.   Oh I know this all to well with Prov.   I had a $1,100 debt to them and after everything was said and done I wound up paying $2,300.  

[Anonymous]

oh also it's not the exact date you stop paying, someone correct me if I'm wrong, the CRA reporting time limit is 7 years from the date it was charged off, so If Prov. didn't charge it off until almost a year later, that may be correct.   Your 30 60 and 90 days should come off in the 7 years but that is a moot point since the charge off is the big killer

But someone chime in if I'm wrong on that assumption.

[Anonymous]

---

Boswd wrote:

the answer to question 1 is they can still show a balance due because you still owe the debt.  Just because it was charged off doesn't make it go away.  If you pay they will have to report it as an income.    If it hasn't been sent to a collection agency it might be wise to start paying on it before it does.  If it gets sent to a CA then they too can report it and it is a double whammy on your report. Not good.

2.  Paying off your credit cards will lower your utilization which will help your score, paying off collections does not.   FICO  doesn't reward points for paying off bad debts and in some cases it may lower your score since it appears to the computer as new transaction.  It stinks I know.  But hopefully the two will even themselves out and maybe the lower utiliztions will weigh heavier.   But on the bright side you have those collections gone and you can now answer the phone and go to your mailbox without seeing another collections letter.  That is always a good thing. 

It ususally take up to about 30 days to report,   after 30 days and nothing has been updated, dispute it with all three CRA's.   Good luck

---

1. I think you need to do a little research on this particular answer... A charge off needs to be reported as $0 balance. Once it is reported as bad debt on the OCs P&L it ages and then eventually is charged off. This is then removed from the P&L the following month. It is not reported as paid, but must be reported as $0 balance. It may have been sold to a CA and that CA can report it as debt owed on CR but the OC must have have it reported as $0 balance. You should dispute that TL with both CRA and OC... If there is no change then DV and dispute again.

Rob

[Anonymous]

I was told that it starts 180 days from the last payment by Brammy, and on the FTC web site it states that as well. My last Pymt to them was Actually 11/2002 but they have it listed as 10/2003. The insurance was thru Providian and I found out that they had a class action suite against them for that same reason matter of fact they have had several of those. It is listed Washmutual/Providian but we never were offered to pay off and cancel the card when Providian sold out to Washington Mutual as a matter of fact we did not even know this until we got one bill and the inter. rate was jacked way up there. This is one Dirty Company. and then they sold it to LVNV so I dont see where WAMU should be alot to still report lates or anything.

[Anonymous]

Rob,

 I have disputed it and the CRA came back and said it was Verified and is in accordance to the FCRA

[Anonymous]

One more question on my next dispute that the balance should be 0 due to the Charge off what do I put as reason and how should I write that one?

thanks,

Debbie

[Anonymous]

Your dispute should be based on the inaccurate reporting of the debt. Make sure to copy the CRAs on your dispute with the CA. If the debt is reported as charged off it must be reported as $0 Balance.

If they refuse to update the information being reported to CRA then send another CMRR letting them know that they are in violation of the FCRA and demand that the TL be deleted.

Check out www.brokencredit.com for GREAT strategies and well researched information.

Take Care.

Rob