About 4 years ago I closed a checking acount at Citizens Bank. Apparently shortly after they approved an account debit for $49 after the account was closed and paid it using the overdraft protection. I never knew this until a collection agency started sending me letters. I finally got them to verify the information and then they sold to a new collection agency. The new collection agency is offering to settle for $160 (they say with fees the amount is $340).
On my credit report Citizens is showing it as a "charge off" and the new collection company is not showing yet since the old collection agency just sold the debt. The old collection agency has removed the collection from my account.
Now that I know what it is for and considering it's already 4 years old, what's my best course of action? Settle with new collection company if they agree to not report on my credit report? Contact Citizens Bank and see if I can get them to delete the charge off?
Also, I had filed a Ch 13 almost five years ago and since then my student loans do not report any payment history for the last 5 years. They show as "closed" and "pay as agreed" is this the right way for them to show even though there is a balance and I continue to pay on them outside of the chapter 13?
Thanks!
