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Settled charge off

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New Member

Settled charge off

How does a settled charge off report if it has been proven to be a fraudulent account? Will they update/ refund the money? If anyone has any experience with this type of situation please let me know what I might expect.

Thank you
Message 1 of 16
15 REPLIES 15
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Moderator

Re: Settled charge off

Hi and welcome to the forums

I'm a little confused here
You have a fraudulent account, but you paid it (settled for less)?
Did you file police report? Have you provided lender and CRAs with a proof that account is fraudulent?

If the account is not yours, when did you become aware it's on your credit report, considering it went all the way to CO status?

I really dont know about refund. Most people do not pay accounts that dont belong to them.

It might be a lot easier to provide you with some answers, but you'll need to elaborate a bit more, and provide some history
Message 2 of 16
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New Member

Re: Settled charge off

Thanks for reading.

I moved across the country and was being a caregiver for a relative. So before I left I paid down my credit card balance in full around end 2013. I didn’t have any charges after and I didn’t have any statements that were at my disposal. In 2018 I went to purchase a home and there is a charged-off account for $2,150. The mortgage lender said that if that account was settled I could move forward I called to try to settle/ figure out what the debt was. No luck only routed to collections agents. I called and requested statements tried to log in and get statements no luck. I didn't get a mortgage and I did not get any clarification of the charge off either.

In 2019 I decided to just settle the debt for half so I could get a loan to purchase a home. I was able to finally get in touch with the right people in the executive offices of the credit lender via reading this forum ect ect. It took a complaint with state attorney general and consumer finance protection.

So fast forward to now I finally received statements to go through and confirm they are not mine and have been informed they will send me a written response in 10 to 15 with there finding/ response.

Let me know if the details are good or if I need to elaborate in more areas please.

Thank you



Message 3 of 16
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Moderator

Re: Settled charge off

Yes, they are good.

The only way account is fraudulent is if someone opened it in your name.
If this is some kind of mix up, and someone else's account ended up on your report, it's not a fraud.
Unfortunately, the burden to prove account is not yours will be all on you. At least you have statements, so that's a good start.
You should pursue this till you get the refund and the removal.
If they are not willing to work with you (whomever you paid), CFPB complaint is certainly in order. You will need to dispute with CRAs first, though.
You may want to have a consult with an attorney, if they put up too much resistance.

If someone actually opened an account in your name, process is similar but it does require filing of the police report for the best results. That probably wouldn't work after all this time has passed, and account paid.

Just sit tight till you see what they say
Message 4 of 16
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Established Contributor

Re: Settled charge off

There are 2 issues here if I read correctly :

 

- credit reporting. With the affadavits , should be able to get accounts removed from reports. 

- OP paid to satisfy charges that weren't his. Who will refund is money ? He would have to find individual who made charges and sue them.  Creditor will not pay OP back. That's the way I see it.  

 

Message 5 of 16
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Moderator

Re: Settled charge off

Again, there is an important distinction there
This account could have resulted from a simple mix up. The refund should come from whomever collected the money from them, if and only if they can prove account is not theirs.
If this is case of someone opening fraudulent account in their name, proper procedure wasnt followed and it's going to be an uphill battle to do anything.
Because OP already paid the account, most prudent course of action would be to consult an attorney.

I had someone else's tradeline on my EQ. It was removed after sending them info they requested. The account wasnt negative, it was actually rather pretty 🤷‍♀️
Took a while because EQ, but it got done with DL, ss card, and a utility bill.
Message 6 of 16
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Established Contributor

Re: Settled charge off

I agree.  Not a quick fix

Message 7 of 16
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Super Contributor

Re: Settled charge off

You may have a claim for unjust enrichment against the creditor you paid, if it was not your debt.

It could be argued that you paid the debt under duress so that you could purchase your house; otherwise you would not have been able to purchase your house.

That would be the basis for your claim for a refund against the creditor. Nevertheless good luck.
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In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
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Message 8 of 16
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Frequent Contributor

Re: Settled charge off


@Kundog wrote:
Thanks for reading.

I moved across the country and was being a caregiver for a relative. So before I left I paid down my credit card balance in full around end 2013. I didn’t have any charges after and I didn’t have any statements that were at my disposal. In 2018 I went to purchase a home and there is a charged-off account for $2,150. The mortgage lender said that if that account was settled I could move forward I called to try to settle/ figure out what the debt was. No luck only routed to collections agents. I called and requested statements tried to log in and get statements no luck. I didn't get a mortgage and I did not get any clarification of the charge off either.

In 2019 I decided to just settle the debt for half so I could get a loan to purchase a home. I was able to finally get in touch with the right people in the executive offices of the credit lender via reading this forum ect ect. It took a complaint with state attorney general and consumer finance protection.

So fast forward to now I finally received statements to go through and confirm they are not mine and have been informed they will send me a written response in 10 to 15 with there finding/ response.

Let me know if the details are good or if I need to elaborate in more areas please.

Thank you




From my understanding, the account you refer to was a valid account in your name that in your opinion you had paid to 0 balance in 2013 and made no other charges after having done so.

 

Then come 2018, while reviewing your credit, you find that this same account is now charged off with a balance of $2xxx.

 

It has taken you some time but you have finally gotten ahold of statements related to these charges from the creditor and you have found that the charges are fraudelent, transactions that you did not make rather someone else has made them that did not have your permission to do so.

 

What is unclear is whether you have actually paid someone to settle this account or if the account is still pending.

 

What actions to take to clear the negatives from it from each CRA is somewhat dependent on the current status of the account and whether it has already been settled by you.


 



Message 9 of 16
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New Member

Re: Settled charge off

I appreciate the replies and time everyone has taken to respond. So yes that is the case it was an account that was in my name I had used in the past. The account is considered settled at this time.

I am waiting on a response from them that should be issues in 10/15 days and was wondering if they will refund my settled money and no longer report this to the agencies?
Message 10 of 16
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