Charge off question

[Laurenm27]

@FireMedic1 No worries! I didn't specify that in my post. Thank you for your help with this. 

[vntrsc]

Just an FYI:  The New York law for credit reporting states that unpaid collection accounts remain for 7 years.  In order for the 5 year rule to apply, the account must be paid.

New York General Business Law (GBLA), Article 25 § 380-J(f)

(iv) accounts placed for collection or charged to profit and loss
which antedate the report by more than seven years; or accounts placed
for collection or charged to profit and loss, which have been paid and
which antedate the report by more than five years;

[Laurenm27]

@vntrsc Thank you for sending the language from the law. I figured out in the thread above that they had to be paid. Thank you for clarifying and taking the time to respond!

[Laurenm27]

@vntrsc @FireMedic1 @GodivaD @Horseshoez 

I found the notices received prior to charge off from JPMCB. It gives me the lower amount they were willing to settle for. It says if I pay the lesser amount that they will reduce the unpaid amount to zero. However, it also says that they will report to the credit reporting agencies that the accounts have been paid for less than the full balance. Does this mean that if I pay the lesser amount that I will be able to get it removed from my report? Or do I need to pay the full amount? I feel like the language in the letter says 2 different things. Thank you! 

[vntrsc]

The law just says "which have been paid".  It does not give a further explanation.  It would seem to me that if the debt is considered paid by the settlement amount, as long as it antedates the report by more than 5 years, that settlement should suffice to constitute removal.

Hiwever, just to be safe, I might contact a NY consumer attorney and ask.

[GodivaD]

Hi Lauren, 

You can call them and see if you can get a lower settlement than what's on the notice. Yes, once it's updated to $0 you can get them removed. TU usually 6 months in advance, EX 3 months and EQ 1 month but no one likes calling Equifax. As long as it's $0 balance and at or close to the 5 year mark. let me know if you have any other questions 

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@Laurenm27 wrote:

@vntrsc @FireMedic1 @GodivaD @Horseshoez 

I found the notices received prior to charge off from JPMCB. It gives me the lower amount they were willing to settle for. It says if I pay the lesser amount that they will reduce the unpaid amount to zero. However, it also says that they will report to the credit reporting agencies that the accounts have been paid for less than the full balance. Does this mean that if I pay the lesser amount that I will be able to get it removed from my report? Or do I need to pay the full amount? I feel like the language in the letter says 2 different things. Thank you! 

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