Chase Won't Pay For Delete on Old Debt. . .Any Options?

[Anonymous]

I have three charged-off credit card accounts currently held by Chase (not with a 3rd party). My first missed payment was in Oct 2012. The three accounts total $8,900. Over the years, I have made small payments, but haven't been able to settle or make a signifigent dent. I recently got a small windfall and want to clean up my credit.

In late September, I send Chase a politely worded pay-for-delete letter. They tried to call and sent me a letter saying they were trying to reach me by phone. I've avoided talking to any creditor on the phone since the day I broke down in tears talking to one. (My bad-credit story, like many others, began with a medical illness in my family.)

Today, I finally summoned the courage to call. They were very polite and gracious, but the Credit Unit Specialiast rep told me that Chase doesn't do pay-for-delete, period. I asked what incentive there is for me to pay, since these will fall off my credit report within roughly two years. She said that depended on my plans.

I don't have upcoming plans that require good credit. However, I would really like to feel free of this at long last. I also think paying is the right thing to do. But if Chase won't pay-for-delete, then that's a very high price.

Am I giving up too easy on pay-for-delete? Should I keep calling them?

One other question--the rep told me that the Date of First Delinquency is what starts the 7-year clock. I was under the impression that the small payments I'd be making to the charged-off account were delaying the start of that 7-year clock. (I didn't know at the time.)

[Medic981]

Welcome to the myFICO forums!

I believe that your date of first delinquency is what sets when the debt will fall off your credit report, seven years + 180 days. The payments you have sent reset the Statue of Limitations for the creditor to be able to sue and seek a judgment in court to recover losses from the debt. The SOL varies from state to state so that is something to look into.

[Anonymous]

Thanks, Medic. I moved to another state a few years ago. Which state should I look up?

My last payment was just a few months ago, so if I still have 7 years to go, that would be a big incentive to pay in full regardless.

[Medic981]

I am making an educated guess that you would now be bound by the state you are living in as that is the state that the suit would be filed in. Credit card SOL can be as short as 3 years and as long as 15 years depending on which state you live in.

[Medic981]

I just read that if you move states after opening your credit card, you could be sued in either the state you originally lived in or the state you moved to, as jurisdictional issues related to SOL aren’t always clear.

[Anonymous]

Yes, it did ocurr to me that informing them I can pay makes me a better target for a lawsuit. But I'd pay them before it came to that, and I think they'd have to bring all three accounts to court separately. I'm currently in CT and am trying to find out statute of limitations. I think it's six years. I just wish they'd let me pay-for-delete. 

[Anonymous]

Experian seems to be saying that the payments I've made haven't altered the original date of delinquency as it pertains to my credit history.

https://blog.equifax.com/credit/does-paying-a-collection-restart-the-debt-clock/

?

[Anonymous]

Your accounts are charged off right? Date of first delinquency is different than payments starting the SOL clock over.

[Anonymous]

Yup, all three accounts have been charged off since 2013. But I'm still confused. Does the 7-year clock for my credit history start with date of first delinquency or the date of my last payment? 

Also, what exactly is the date of first delinquency? Is it my first missed payment? Or the date of the charge-off? 

[Anonymous]

Date of last activity. Each payment reset the clock.