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1st Financial Bank Help! (1FBUSA)

kliqzero
Member

1st Financial Bank Help! (1FBUSA)

I got this credit card back in college, my dad suggested I sign up for it and I did without knowing anything about how credit cards worked. I started with a $500 limit but didn't use the card for almost 2 years. Two years later i got laid off my job in college and also happened to get a letter from 1FBUSA the same week saying they had boosted my CL to $6500! Long story short, I racked up an insane bill on the credit card and never paid it back - and yes I realize this was very irresponsible of me.

 

YEARS later, I am trying to get this taken care of. My account was opened in 2007 and closed in 2012. It should drop off in 2019, correct? The debt has been charged-off and placed for collection but they haven't actually given it to a collection agency, they still own the debt themselves.

 

They really offered me a settlement for 25% of the balance, but I am skeptical to take this. Will taking the deal reset the 7 year drop off limit? Is it best to let this just ride out for 2 more years and have it fall off? Does it even work like that? The letter stated in writing that any acknowledgement of the debt would reset some sort of time or date, but I wasn't sure exactly what it meant.

 

I know I made some mistakes so please, if you guys could, save the responsibility lecture. I was young, stupid and fell for this trap like many other people that I've read about. The insane 30% interest rate combined with the fact that they give out high CL to college kids with no stable income is a recipe for disaster.

 

What should I do?

 

Summary:

$8000 blanance

Closed: Oct 2012

Payment Status: Charged off

 

 

 

Message 1 of 5
4 REPLIES 4
NormanFH
Super Contributor

Re: 1st Financial Bank Help! (1FBUSA)


@kliqzero wrote:

I got this credit card back in college, my dad suggested I sign up for it and I did without knowing anything about how credit cards worked. I started with a $500 limit but didn't use the card for almost 2 years. Two years later i got laid off my job in college and also happened to get a letter from 1FBUSA the same week saying they had boosted my CL to $6500! Long story short, I racked up an insane bill on the credit card and never paid it back - and yes I realize this was very irresponsible of me.

 

YEARS later, I am trying to get this taken care of. My account was opened in 2007 and closed in 2012. It should drop off in 2019, correct? The debt has been charged-off and placed for collection but they haven't actually given it to a collection agency, they still own the debt themselves.

 

They really offered me a settlement for 25% of the balance, but I am skeptical to take this. Will taking the deal reset the 7 year drop off limit? Is it best to let this just ride out for 2 more years and have it fall off? Does it even work like that? The letter stated in writing that any acknowledgement of the debt would reset some sort of time or date, but I wasn't sure exactly what it meant.

 

I know I made some mistakes so please, if you guys could, save the responsibility lecture. I was young, stupid and fell for this trap like many other people that I've read about. The insane 30% interest rate combined with the fact that they give out high CL to college kids with no stable income is a recipe for disaster.

 

What should I do?

 

Summary:

$8000 blanance

Closed: Oct 2012

Payment Status: Charged off

 

 

 


Taking the offer will not reset anything. What is the SOL in your state?

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Message 2 of 5
RobertEG
Legendary Contributor

Re: 1st Financial Bank Help! (1FBUSA)

The exclusion date for any charge-off or collection is no later than 7 years plus 180 days from the date of your first delinquency on the account (after which you remained delinquent up to the taking of the charge-off or referral for collection).  It is not based on any other date, such as date of closing of the account.

What is the reported DOFD?

 

Credit report exclusion does not discharge the debt.  A charge-off must be excluded from your credit report no later than 7 years plus 180 days from the DOFD.

 

Credit report exclusion usually removes the ability of others to become aware of the excluded information by way of a simple pull of your credit report.

However, it is still a delinquent debt, and it is possible for others to become aware by means other than a standard pull of your credit report.

First, the credit report exclusion provisions of the FCRA are not absolute.  FCRA 605(b) permits a creditor to still obtain a credit report that includes all prior derogs if their inquiry states that the consumer has initiated a request for credit in the amount of $150K or more.  Creditors rarely request such full factual credit reports, but they have the ability.

 

Second, a prospective creditor can simply include a request for disclosure of all unpaid, delinquent debt in their credit application.

 

Finally, if the SOL for your state has not expired, then the creditor may still initiate civil action and seek a judgment.

 

Apart from the issue of moral obligation, paying delinquent debt that has become excluded from your credit report will remove any issue of an unpaid delinquent debt affecting future credit.  Your call as to whether you wish to rely on credit report exclusion as basis for not paying an obligated debt.......

 

Message 3 of 5
kliqzero
Member

Re: 1st Financial Bank Help! (1FBUSA)


@NormanFH wrote:

@kliqzero wrote:

I got this credit card back in college, my dad suggested I sign up for it and I did without knowing anything about how credit cards worked. I started with a $500 limit but didn't use the card for almost 2 years. Two years later i got laid off my job in college and also happened to get a letter from 1FBUSA the same week saying they had boosted my CL to $6500! Long story short, I racked up an insane bill on the credit card and never paid it back - and yes I realize this was very irresponsible of me.

 

YEARS later, I am trying to get this taken care of. My account was opened in 2007 and closed in 2012. It should drop off in 2019, correct? The debt has been charged-off and placed for collection but they haven't actually given it to a collection agency, they still own the debt themselves.

 

They really offered me a settlement for 25% of the balance, but I am skeptical to take this. Will taking the deal reset the 7 year drop off limit? Is it best to let this just ride out for 2 more years and have it fall off? Does it even work like that? The letter stated in writing that any acknowledgement of the debt would reset some sort of time or date, but I wasn't sure exactly what it meant.

 

I know I made some mistakes so please, if you guys could, save the responsibility lecture. I was young, stupid and fell for this trap like many other people that I've read about. The insane 30% interest rate combined with the fact that they give out high CL to college kids with no stable income is a recipe for disaster.

 

What should I do?

 

Summary:

$8000 blanance

Closed: Oct 2012

Payment Status: Charged off

 

 

 


Taking the offer will not reset anything. What is the SOL in your state?


I'm in Maryland, so I think it's 3 years but not totally sure.

Message 4 of 5
kliqzero
Member

Re: 1st Financial Bank Help! (1FBUSA)


@RobertEG wrote:

The exclusion date for any charge-off or collection is no later than 7 years plus 180 days from the date of your first delinquency on the account (after which you remained delinquent up to the taking of the charge-off or referral for collection).  It is not based on any other date, such as date of closing of the account.

What is the reported DOFD?

 

Credit report exclusion does not discharge the debt.  A charge-off must be excluded from your credit report no later than 7 years plus 180 days from the DOFD.

 

Credit report exclusion usually removes the ability of others to become aware of the excluded information by way of a simple pull of your credit report.

However, it is still a delinquent debt, and it is possible for others to become aware by means other than a standard pull of your credit report.

First, the credit report exclusion provisions of the FCRA are not absolute.  FCRA 605(b) permits a creditor to still obtain a credit report that includes all prior derogs if their inquiry states that the consumer has initiated a request for credit in the amount of $150K or more.  Creditors rarely request such full factual credit reports, but they have the ability.

 

Second, a prospective creditor can simply include a request for disclosure of all unpaid, delinquent debt in their credit application.

 

Finally, if the SOL for your state has not expired, then the creditor may still initiate civil action and seek a judgment.

 

Apart from the issue of moral obligation, paying delinquent debt that has become excluded from your credit report will remove any issue of an unpaid delinquent debt affecting future credit.  Your call as to whether you wish to rely on credit report exclusion as basis for not paying an obligated debt.......

 


Thanks for the detailed reply - when the debt falls off after 7 years, will my credit score go up as a result?

Message 5 of 5
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