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Greetings. I'm new here, and I'm looking for some advice on what action to take on a few bad items on my credit report.
The first I'm trying to deal with is a Chase Visa that was charged off as a bad debt and trasferred in June 2010 with a balance under $10,000. I eventually settled with the debt collector. Ideally, I'd like to get the delinquency and charge off removed as a goodwill adjustment (the account had never been delinquent prior to the delinquency), but absent that, I'd like to get the whole trade line deleted from my report.
I've sent a letter to the address on my credit report, and tonight I sent an e-mail to the executive office, both requesting a goodwill adjustment. A few searches of the forum indicate that a lot of people on here have had success getting goodwill adjustments from Chase. I'd appreciate any advice or insight.
I've heard that the debt must be paid in full for them to do an adjustment/deletion.
That being said, I had a mortage with them that's paid off but has a 180 late. I've sent 3 GW letters and all times have received a response that they don't do GW adjustments or deletions. Guess maybe its the luck of the draw or something else, but they were very stern with me that this was their final decision.
I sent you a PM!
Question: If Chase (or any other creditor) transferred the debt to a collection agency chances are they sold it to that collection agency. Even if you paid the collection agency in full for the debt, the Chase would still have a lost. So why would they grant a goddwill?
sjt - That's a good question. Honestly, before I started researching the process of rebuilding/rehabilitating credit, it would have never occurred to me that a lender would remove a negative credit item just because the consumer requested it. But, I was encouraged to learn that lenders are willing to do this, and especially that Chase seems more willing than most.
I certainly don't claim to be deserving of or entitled to a goodwill adjustment from Chase, but Chase has nothing to lose by making it, and, as the name implies, they have an opportunity to generate some goodwill.
One reason why a creditor might grant a GW deletion is if they believe whatever led to your prior delinquencies has now been overcome, and they want your future business.
GW letters that emphasize "my wife just left me, the roof is a'leakin, the dawg just died, lost my job," etc., may simply reinforce a perception of risk.
However, demonstrating that those conditions have been overcome begins to paint a new picture of lower risk.
They are capitalists. I would tend to view it in terms of what you can offer them.
Charge-offs are a very good example. In doing a CO, they made an official business proclamation that your lack of payment of the debt reached the stage that they considered it "uncollectible." That is a serious perception to overcome.
@RobertEG wrote:One reason why a creditor might grant a GW deletion is if they believe whatever led to your prior delinquencies has now been overcome, and they want your future business.
LOL BofA has one final shot to do that by June 23rd for TU. IMHO they are playing chicken with me.
@2NE1 wrote:
I'll tell you why, because we're human beings and make mistakes, but we should be allowed to make changes and given a second chance. I'm pretty sure a large percentage of us fell into debt not on purpose, there had to be an understandable reason, sometimes a life changing event. Also, if a company takes into consideration your GW request, you're most likely to do business with them again in the future (at least that's the way I see it).
I am not so sure a large percentage of people got into trouble because of life changing events or what have you... I mean, I justify it to myself all the time as to why I have this hard struggle to overcome, but the bottom line is I took on too much debt because it was avail to do, didn't pay my bills, stayed underemployed, toured in a rock band, and although there are plenty of mitigating reasons to why I ended up in debt, the bottom line is, it was my choices that landed me on this forum rebuilding..
I would venture to say a large majority of people became in debt because of choices they made, and many more stay in trouble because they ignore it..
Now that my HJ is over (lol) -- I worked for Chase corporate (well, Bank One corporate, but under Chase current management ect ect) and I agree w/ 2NE1.. Chase usually will work with you, if you get the right people involved..
-scott
Thanks to everyone for the input.
RobertEG - I think the factors you cite will help my case. The root cause of my delinqency (losing my job as a result of the financial collapse in 2008) has been eliminated, and Chase recently granted me an auto loan.