Charge-off reporting past due balance...

[Invest4Rest]

Hello Community,

I have a charged off account with OpenSky that was closed back in May of 2020. Shows as charged-off/written off $160. They continue to report every month that it is past due the $160. Correct me if I'm wrong, if the account is written off and the company receives a tax credit for that amount they can no longer collect that amount? Unless it is then sold off to a collection. They should inturn bring the balance to zero. The account is showing 80% utilization, credit limit of $200 with $40 available. How can this be if they charged it off and got a write off for the bad debt? Even if I wanted to do a PFD with them, they can't because that would be double dipping. It is being reported incorrectly. Should be a zero balance. Thoughts??

[FireMedic1]

Charge offs can leave the balance if not paid. Some will send a 1099C. Thats why we say settle the account so it shows a $0 balance and the monthly updates stop. Then it will age off.

[Invest4Rest]

I absolutely want to settle it with them. My issue is...if they wrote off the $160 how can they collect it from me? They must have received a tax credit for the bad debt. They still own the account. Or would this be something I shouldn't worry about as it would be their problem to deal with regarding having double credits for the debt. Hope that makes sense? 😆

[JoeRockhead]

Pay them, wish them a good day and be done with it... 

[FireMedic1]

Even though the company has written off the balance as a loss, you’re still legally liable for the debt. Whether you decide to pay it off depends on your personal financial and credit situation.

https://www.transunion.com/blog/credit-advice/what-is-a-charge-off 

I'd work on getting it settled. Before they turn it over to a collection agency. Then more headaches and score drops even more with a new collections. Its a no win case. Settle it and get it in the past.

[GZG]

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@JoeRockhead wrote:

Pay them, wish them a good day and be done with it... 

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this

this is worth one phone call to them

hi, you guys wrote this off and issued a 1099c, it's my understanding this means you should change the reporting of this debt to $0.

can you please update your reporting to reflect the accurate $0 balance? 

if their answer is anything but, "yes we'll fix it sorry"

just pay it off.

if you can't, instead of taking this phone call, spend some time to figure out how you're going to come up with $160 because it's probably a higher priority than fixing your credit report

[RSX]

^^^ you are getting hung up on the tax implications and process that is confusing to you

forget about all that - offer to pay $100 and get it closed out

if they say no, pay the full amount

you are getting a penalty for a very small amount of money - just get it paid and reporting zero

[Invest4Rest]

@FireMedic1 @JoeRockhead @GZG & @RSX Thank you for the responses and awesome advise. I'll update once it's taken care of. 🚀🚀🚀