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Help with small charge off

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Member

Help with small charge off

A year ago I had a barclay CC that had about $4500 at one time. It was paperless statement and I paid all on time but $19 balance which I was not aware. Since we have several credit cards and thinking the balance was 0, I didn't ever care to check online and the card was not being used. The email on file was my sisters email and unfortunatley she doesn't check her email that closesly I guess. This charge off was reported this past August and my fico score went down to aroung 692 from around 800. I called barclay explained my situation and even spoke to a supervisor about PFD but she just told to me to speak to their internal collection. The charge off is still with them and its about $275 with late fee I guess. Their collection guy told me I can write a letter explaining my situation in a letter and I wanted to be done. Please any advice would be welcome. Never had any collection before and it seems they are merciless even for small amount of money. At least they should sent letter and call to collect the  unpaid money. Thanks for any advice

Message 1 of 12
11 REPLIES 11
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Moderator

Re: Help with small charge off

Hi and welcome to the forums @borrelx 

 

Unfortunately, it might be very hard to get anything removed at this point. If this was a single 30 or 60 day late, maybe, but for an account to get this "status" it usually takes at least 5-6 months of non payment. 

 

Here is some information on GW removal, you might want to read it and see if this is something you're willing to try. 

 

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-St...

 

Before you attempt GW removal, the account should be paid to $0.00. 

 

Good luck 

You might be sleep deprived if you try opening car door with Samsung Pay
Message 2 of 12
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Member

Re: Help with small charge off

Thanks a lot Remedios.

 

The guy at the Barclay collection that I spoke with implied that writing and explaining as part of payment might work or might not. He gave the address to Barclay collection and informed to explain why it was not paid on time. He even suggested if there was email or other changes to be included in the letter. I will try a letter. Should I offer to pay all for removal or negotiate? If it would help I would pay all at once.

Message 3 of 12
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Moderator

Re: Help with small charge off

You cannot offer pay for delete to original creditor. Paying was what you agreed to when card was issued. PFD is reserved for dealing with collection agencies. 

Your account is in internal collections, Barclay owes the debt, and longer you wait, harder it will be to get it removed 

 

You should pay in full, and pay soon. Then you start asking (more like begging) for them to remove 

 

There really wont be any negotiating here. You need them to do something, so you'll need to act accordingly, unless you want to get stuck with this for 7 more years.

 

Again, you need to pay asap. 

You might be sleep deprived if you try opening car door with Samsung Pay
Message 4 of 12
Legendary Contributor

Re: Help with small charge off

Is there a separate collection reporting to and showing in your credit report, or is there only reporting by the original creditor, such as a charge-off?

 

If a creditor still owns a debt, you can still make a pay for deletion offer to them regarding the negative reportng they have made.

PFDs are private contract terms/offers that are not limited only to debt collectors/collections.

Creditors, particularly if the debt is being handled by either an internal or third-party debt collector, will often refuse to consider any payment offers, requiring that any offers by made to the debt collector, but they are not prevented from still accepting direct payment, with or without agreement to terms, such as deletion of any negative reporting they have made.

 

Yes, you can request a PFD from the creditor seeking removal of the reported charge-off in exchange for your payment of the debt.

Acceptance is entirely up to them.....

 

Message 5 of 12
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Moderator

Re: Help with small charge off

All those questions contain answers in the original post. 

With that said, Barclay will not PFD. 

You might be sleep deprived if you try opening car door with Samsung Pay
Message 6 of 12
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Member

Re: Help with small charge off

Thanks Robereg and Remedios

 

Yes the debt is still internal with Barclay. Okay so if I pay the charge off fully, will I see improvment in my score or will it make it even worse than it is?. Thanks again

Message 7 of 12
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Moderator

Re: Help with small charge off


@borrelx wrote:

Thanks Robereg and Remedios

 

Yes the debt is still internal with Barclay. Okay so if I pay the charge off fully, will I see improvment in my score or will it make it even worse than it is?. Thanks again


If charge off stays, but it's paid, there will be score improvement, but it will be gradual over time. Payment does not erase the fact it happened. 

Without a payment, updates on negative account will keep your score suppressed as long as it's updating. 

If GW letters are successful and it gets removed completely, you will go back right where you were if there are no other changes. 

You might be sleep deprived if you try opening car door with Samsung Pay
Message 8 of 12
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Member

Re: Help with small charge off

Remedios,

 

Thanks again. I will try to update this forum and the process begins for this stupid $19 omission.

Message 9 of 12
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Regular Contributor

Re: Help with small charge off

This IMO is why it is always good to set up the account to pay minimum payment each month.  Had this been set up, the $19 would have been paid off as needed.  If you don't owe anything on card, minimum payment is $0 so nothing taken out, but if something were to happen to you (hospital, etc) and you are unable to make payment that month, then the automatic payment will take care of it.  I always pay down before this date, but it is a fail safe if I were to miss a payment somehow.  Doing so would have saved you a big headache.  I would personally set up all accounts for automatic payment of minimum payment.

 

Do you know the name of the person you spoke with on the phone?  If so, send that letter to him.  He sounded like he might be willing to help.  I know Barclays is one of the harder creditors to deal with, but that does not mean you should not try to goodwill the heck out of them.

Message 10 of 12
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