CU checking account charge off??

Anonymous · ‎06-11-2008

Checking our CRs I discovered that we have a charged off checking account with our CU (we also have a car loan through them that we've had a few 30 days that we're hoping to GW). The "balance" is $0. Does that make sense????? We never paid it off (at least, that I'm aware of), so that can't be the reason we have a $0 balance ...

What should we do?? We don't want to poke a sleeping giant (we don't want to be all complainy since we'll be asking them for a GW soon on the car note lates) but we don't want this on our CR either -- especially since we don't remember this happening!!

Another question would be: If we decide to dispute this CO AFTER we've gotten lates removed, can they just plop them back on (in "retaliation" for disputing the CO)? Or is that (hoping, hoping, hoping) once they're off, they're off??

I don't think we would dispute -- I think we'd just attempt a GW for that, too. I would just like to know 'cause like the cat, I'm curious as heck!!

Anywho, thanks for listening to the dumbo questions!!

Wonderful luck to all!!

JShidell · ‎06-11-2008

Wonderin,

I have about 5 to 6 charge-off accounts that have a zero balance from the OC's. However, those charge-off were purchased or sold to CA's which is a double whammy for me. Because on my credit report I have OC's indicating charge-off's with zero balances and CA's indicating the balance. Only thing good about having charge-off's with zero balances is that it doesn't go towards your utl.

In so I was told. But for me for every charge-off account I have that has a zero balance, has a CA in conjuction with it showing a balance.

v/r

James

Anonymous · ‎06-11-2008

JShidell hit the nail on the head. Normally, if a CO is reporting a $0 balance and it hasn't been paid, the debt has been sold to a CA or JDB. In fact, an OC who sells a debt to a CA is required to report a $0 balance on the original TL, since they have, in fact, been paid for the junk debt. Wonderin, you may be "fortunate" in that the CO'd debt has been sold to a CA who isn't reporting. (Of course, by "fortunate" I am referring only to the fact that they are not reporting.)

Regarding the reinsertion of GW'd lates, there is nothing stopping a creditor from doing that. When a creditor accepts a GW request, they are doing nothing more than a simple favor for you. There is nothing legally binding about a GW, so there is nothing to stop them from changing their minds in the future and rereporting whatever baddies they had previously deleted.

Message Edited by cheddar on 06-11-2008 01:02 AM

JShidell · ‎06-11-2008

cheddar wrote:
Wonderin, you may be "fortunate" in that the CO'd debt has been sold to a CA who isn't reporting. (Of course, by "fortunate" I am referring only to the fact that they are not reporting.)

Message Edited by cheddar on 06-11-2008 01:02 AM

This could be good or bad. Good being its not reported. Bad meaning that just because its not reporting now does not mean it won't report later. That is one thing i'm concerned about. I have atleast 1 CA or OC that is not reporting on my reports. How do I know? Because I know for a fact I have one atleast one CC that I stopped paying on in 04 and there is no record of it on my credit reports. I'm hoping they never will report. But the bad thing is if you don't see it on your report you forget about it, then once you feel like you fixed your credit, paid down all your debt and satisfied you get hit with new account on your credit report, reporting that debt that was sold months/years ago.

Even though its bad on your credit report when the OC's or CA's report defaulted accunts. I'd rather see them and tackle them straight from the get go, then having to be suprised with a new account on my credit report years down the road.

v/r

James

JShidell · ‎06-11-2008

Okay,

Question. What do you do If you have OC accounts on your credit report that show a zero balance and are charge-off accounts and there is no CA listed on your credit report for that charge-off account?

I just came across two accounts on my credit report that show a charge-off with a zero balance but there is no CA on my credit report.

I called the original OC and they gave me the numbers to these CA's. But should I contact these CA's with DV letters even though they are not listed on my credit report?

I'm thinking I should because I want to update the status with the OC as a paid charge-off, settled account.

But i'm not sure how all this works. Are the CA's responsible in contacting the OC that the account has been settled so that the OC can update the credit bureaus?

This happened to me once already last year. I had a charge-off/zero balance with Capital One. I received a letter from a CA that was not on my credit report. I settled with this CA and closed the account. About a month later the OC account on my credit report showed a status of settled/paid/closed.

I think the only way to update the status of a paid charge-off account with the OC is to pay the CA and hope they report it back to the OC.

Has anyone else experience this?

v/r

James

Message Edited by JShidell on 06-11-2008 06:20 AM

Message Edited by JShidell on 06-11-2008 06:21 AM

Anonymous · ‎06-11-2008

If it were me, I'd let sleeping dogs lie.

If the CAs are not reporting, don't give them a reason to.

JShidell · ‎06-11-2008

@Anonymous wrote:
If it were me, I'd let sleeping dogs lie.

If the CAs are not reporting, don't give them a reason to.

I truly wish I can do this but I truly can't. Here is why.

1. I have a secret clearance I have to protect. If they pull my credit report and see unpaid charge-off accounts with no attempt to pay, they are going to have questions, and I can't simply say "Oh well there is no collection agency listed so I didn't know who to pay".

2. I am looking at trying to get a mortgage by the end of next year. These charge-offs are not expected to drop off until 2011. The lenders will definitely want something showing those charge-off accounts were settled.

What do I do then? I simply can't pay the original OC because they sold the account.
I'm simply screwed.

v/r
James