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Paid or Paid as Agreed Adverse Accounts

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Paid or Paid as Agreed Adverse Accounts

We have a dilemma. Please help!!! We have two accounts listed as "paid or paid as agreed" but listed under "Adverse Accounts." The third account under "adverse accounts" is a charge off.

Account 1: Opened in 2006; authorized user account; in-house debt management; credit card; updated 08/2018; status - paid or paid as agreed; maximum delinquency of 30 days in 10/2015 and 12/2015. We want to pay this account off. However, we wish it not to remain reporting as adverse. Do you think that is a possibility? We assume try to write a letter?

Account 2: Opened 06/2014; joint account; revolving account; charge account; in-house debt management - date closed 09/2015 (by creditor); charge account; updated 09/2018; status - paid or paid as agreed; date to be removed 06/2022. Then it list high balance and credit limit. Again, we want to pay this account off. However, we wish it not to remain reporting as adverse. Do you think that is a possibility? We assume try to write another letter?

In the past we paid off two accounts that was reporting as the first two and they remained under adverse. Believe it was a mistake to pay in full.

Account 3: Opened 08/2012; individual account; revolving account; credit card; updated 09/2018; last payment made 03/2016; status - charged off and charged off amount; date closed 09/2015; maximum delinquency 07/2016; date to be removed 03/2023. Then it list high balance and credit limit. We have no idea how to handle this one. It is our understanding that you have to report this as income on your taxes unless you fall under one of the six exclusions which you have to prove. Beyond that, I am stumped. The cancellation notice code is G. We had forgotten about this one actually until the notice and our credit report. We in MS and think we're beyond the collection point next month. We will have to amend our taxes to report.

Message 1 of 7
6 REPLIES 6
Moderator

Re: Paid or Paid as Agreed Adverse Accounts

Hi @str23agl and welcome to the myFICO forums!

Minion Hi.gif

I have moved your post to the General Credit Topics section for better exposure on your topic.

Message 2 of 7
Community Leader
Legendary Contributor

Re: Paid or Paid as Agreed Adverse Accounts

Paid and pays as agreed are current account status reportings for accounts that are no longer delinquent, and are either closed with no more debt balance, or an open revolving account for which the last payment placed the account in good-standing.

 

Neither reporting is of a current delinquency status, and thus you are obligated to make the next payment of at least the mimimum balance by the due date set in the next billing statement.   It is an obligation under your account agreement, and thus is not subject to a pay for deletion offer.

 

While the account is currently in pays as agreed, good-standing, it remains an adverse account because it has derogs in its prior payment history profile which adversely affect scoring. 

You can always, if you desire, send a good-will request asking them to remove any prior reported delinquencies or charge-off.

 

 

Message 3 of 7
New Member

Re: Paid or Paid as Agreed Adverse Accounts

Thanks RobertEG, I will use your suggestion for problems 1 and 2. See examples on the forum.

 

For problem 3: I understand that such a letter could have been attempted. However, I believe it will be too late on that account since a "debt cancellation notice" has been sent (us and IRS) and next month will be beyond the collection statue. I read it is 3 years for MS.

So is it best to just let that one ride until time to fall off 2023 (no contacting the creditor to negotiate) and report as income on my income taxes?

 

Thanks,

Message 4 of 7
Frequent Contributor

Re: Paid or Paid as Agreed Adverse Accounts


@str23agl wrote:

Thanks RobertEG, I will use your suggestion for problems 1 and 2. See examples on the forum.

 

For problem 3: I understand that such a letter could have been attempted. However, I believe it will be too late on that account since a "debt cancellation notice" has been sent (us and IRS) and next month will be beyond the collection statue. I read it is 3 years for MS.

So is it best to just let that one ride until time to fall off 2023 (no contacting the creditor to negotiate) and report as income on my income taxes?

 

Thanks,


Is it a 1099-C form? If so, what is the year on the form - 2018 or 2019?

Message 5 of 7
New Member

Re: Paid or Paid as Agreed Adverse Accounts

t is Form 1099-C and the date says 2018.

Message 6 of 7
Frequent Contributor

Re: Paid or Paid as Agreed Adverse Accounts


@str23agl wrote:

t is Form 1099-C and the date says 2018.


Then yes, you'll need to report it on your 2018 taxes. Use Form 1040X to amend your return since you've already filed.

Message 7 of 7
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