Help regarding Chase charge-off

Anonymous · ‎03-12-2017

Hi. I'm a new member here, but a lurker for quite some time now. I was hoping this esteemed community here could help me. My main goal in this is to repair my credit report, hence my choice to post in this board.

I have an unpaid Chase credit card charge-off worth about $540 (I think it was called Chase +1 Student Rewards). It was opened in 2007 and only had one late payment until 2013 when my life took a serious downturn. My grandmother passed away (with whom I was very close) and I was diagnosed with severe depression (not related, although certainly exacerbated). I fully acknowledge that those are not excuses. They are more of an explanation. Anyway, as my credit report shows, the date of first delinquency was January 2013. The account was closed (I think that means charged-off) in December 2013. It hasn't reported anything since November 2014. Based on the information in my credit report, I don't think it's been sold off to a separate collection agency. From what I've gathered, the charge-off may be included in a settlement where Chase can no longer collect on charge-offs withing a certain time frame (potentially forgiven, but I don't recall getting a tax form about it).

I've basically been working to improve my credit where I can, despite the big derogatory. Over the past nearly 2 years now, I've opened some new credit cards. That includes a Cap1 Platinum at $300 that has since become a Quicksilver at $3300, a couple Comenity store cards, and most recently a Quicksilver Visa starting at $2000 (applied through a prequalifier in the mail). I use the cards I have for bills and otherwise necessary expenses. I have learned from the past and they all report 100% spotless.

Basically, my question comes down to this: is there any way I can reduce (or, if I can dream, eliminate) the impact of this from my credit report? Money is tight for me right now and I don't have $540 to pay it off (not that that makes it go away). I know I can call them, but I'm afraid of making it show up as more recent on my credit report, sort of like poking the gorilla in the eye. Do I have any good options here or am I stuck with this until it drops off in about three years or so? Should I try to beg and plea?

I don't plan on a mortgage anytime soon, but I would like to have access to applying to some good credit cards. I know my EX report is my worst among the 3 bureaus and it's currently at 622 (the actual FICO 08 score anyone can now get for free). Fwiw, a couple of the cards I'm looking at as goals are the AmEx BCE and Discover It cards. Right now, understandably, I'm not getting any prequalify offers for either.

If anyone could help, I'd be greatly appreciative.

RobertEG · ‎03-12-2017

Closing of an account is not the same as a charge-off.

Creditors close credit cards to prevent the consumer from additional charges that increase the already delinquent debt.

A charge-off of a credit card debt is a formal accounting measure that is required to be taken once it becomes 180 days delinquent.

It removes the debt from the accounting ledger as a receivable asset, thus preventing a "false" statement of assets that are not likely to ever be received.

The CRAs have explicit codes for reporting of a charge-off.

Apparently, they have not made such a reporting.

If a charge-off had been reported, the account would then have a credit report exclusion date of no later than 7 years plus 180 days from the date of your first delinquency (DOFD). If no charge-off is reported, then nothing becomes excluded based on DOFD.

Any reported monthly delinquencies have their own credit report exclusion dates of no later than 7 years from each of their respecitve dates of occurence.

A late reported for 06/2013, for example, would become excluded after 06/2020.

To obtain earlier exclusion of any reported derogs, you can make an offer to pay the debt in exchange for their agreement to delete any reported derogs.

If you cannot afford to make payment, then a PFD would not be available.

Anonymous · ‎03-12-2017

The account is listed as both closed and charged-off. My EQ report shows the DOFD as being 01/2013 and Date Major Delinquency First Reported (I think this is when they closed the account) as 12/2013. It has not reported on my credit report since 11/20/2014. It shows clearly that they closed the account and charged it off.

It may be hoping for too much, but in an ideal world, I'd like the charge-off removed from my report. Basically, I want to work towards maximizing my credit score. How do I go about dealing with Chase with a $540 charge-off? How do I deal with this with regards to repairing my credit report? At worst, I'm stuck with an upaid charge-off for the next three years or so unless I somehow come up with some extra money and manage to convince Chase to delete the account.

Anonymous · ‎03-12-2017

I had the exact same situation with chase. My account closed and went into a chargeoff back in 2012.

But the killer was because they didn't sell the debt and kept in their internal recovery department they also kept the balance active. My balance was $7700 of a $6600 limit. All the late fees and such pushed it to like 118% utilization.

This killed my score big time, mine also went inactive in 2014 but the balance was still being reported. I ended up settling so that I could get the balance to zero.

Not sure if they will do a PDF. Something tells me they won't, but if you can pay in full you can atleast continue to be in good with chase and not get blacklisted.

Your amount is so low, I'd just pay and move on.

Anonymous · ‎03-12-2017

Tbh, I'm not sure how to quote posts here.

To the above poster, as I stated in my OP, I don't have $540 laying around right now. With all due respect, I'm asking how to improve my credit report/score. If this debt is uncollectable by Chase and unable to be remedied on my credit report (ideally through removal), attempting to pay it off won't do me any good for at least a couple years

I'm not unwilling to pay something right now. I just cannot pay the full amount at this time. As I said, money is tight and I'm working on a cross-country move within the next couple months.

Is there any chance I could get some sort of forgiveness or settlement with Chase for a PFD? I'm able to pay something, but obviously I'd rather pay as little as possible. Will they consider my individual circumstances if I call them? Do I have anything to lose right now if I call them and try to scope the situation out?

Anonymous · ‎03-12-2017

@Anonymous wrote:
Tbh, I'm not sure how to quote posts here.

To the above poster, as I stated in my OP, I don't have $540 laying around right now. With all due respect, I'm asking how to improve my credit report/score. If this debt is uncollectable by Chase and unable to be remedied on my credit report (ideally through removal), attempting to pay it off won't do me any good for at least a couple years

I'm not unwilling to pay something right now. I just cannot pay the full amount at this time. As I said, money is tight and I'm working on a cross-country move within the next couple months.

Is there any chance I could get some sort of forgiveness or settlement with Chase for a PFD? I'm able to pay something, but obviously I'd rather pay as little as possible. Will they consider my individual circumstances if I call them? Do I have anything to lose right now if I call them and try to scope the situation out?

You have nothing to lose by trying. Very unlikely they will accept an offer for a PFD. But if they do for some reason to agree, I suggest having the money when you make the offer.

Very unlikely you are going to improve your scores with an unpaid chargeoff that will/can update monthly.

Anonymous · ‎03-12-2017

I'm nervous because it hasn't been updated since November 2014. I'm not sure if it's even collectible by Chase based on a massive settlement from a couple years ago.

My fear is that if I call and plead my case and if it falls on deaf ears that they'll update the collection and I'll take a hit on my report. Up to now, I've had it on the back of my mind, but I've been trying to work around it. Is it basically a matter of getting a good customer service rep on a good day that's willing to deal? I'm willing to pay something for a PFD, but I can't afford the full balance at this point.

Anonymous · ‎03-12-2017

@Anonymous wrote:
I'm nervous because it hasn't been updated since November 2014. I'm not sure if it's even collectible by Chase based on a massive settlement from a couple years ago.

My fear is that if I call and plead my case and if it falls on deaf ears that they'll update the collection and I'll take a hit on my report. Up to now, I've had it on the back of my mind, but I've been trying to work around it. Is it basically a matter of getting a good customer service rep on a good day that's willing to deal? I'm willing to pay something for a PFD, but I can't afford the full balance at this point.

I understand you don't have the cash right now. You would have best success offering a PFD by paying what is owed.

If you want to settle for less, your going to have to call them.

You will have to communicate with them either case. Nothing is going to happen on its own, as you know.

Your call.

Anonymous · ‎03-12-2017

Here's the thing... if they give you a settlement then there is really no advantage in their eyes so the likelihood of a PFG is very unlikely. If you offer to pay the full amount then you may have a chance.

I can only speak from personal experience. I offered to pay $7700 in full for a delete. They denied me. So I waited a bit then got a settlement for half the amount for a paid for less.

All you can do is try.. but anything less than full even a settlement will be seen as a negative unless you get the delete which I highly doubt will happen.

Best of luck

Anonymous · ‎03-12-2017

The benefit you will have by paid in full or setitled for a lesser amount is the chargeoff will report a zero balance, it will stop any further or future updates and it can begin to age.