Profit and Loss Writeoff?

Anonymous · ‎09-30-2008

Hello,

Im attempting to repair my credit.

One of my reports has an account listed as "Charged iff as bad debt", another has the same account listed as "bad debt Collection" another has it as "unpaid balance reported as loss by credit grantor".

They are all bad. But what is the difference between the descriptions?

This account i am referencing has been closed since 11/04. The last activity was 9/05. I still owe a large amount on it however I have not heard from anyone at this creditor in quite some time.

Is it worth it at this point to try and pay it off?

Its my next to last CC im paying off and probably can't start to pay it off for another 6 months.

Any input / feedback would be GREATLY appreciated.

Thanks!

Anonymous · ‎09-30-2008

AFAIK, it's all the same thing. A charged off debt is a bad debt is a profit/loss write-off (which really just means they charged it off as a bad debt).

A more important topic will be WHAT exactly was the "last activity" on this account???!! And what state are you in (and/or what state did you live in when you incurred the debt)???

I'd worry more about SoL and potential lawsuits than your CRs ... if it's a CC, chances are it's still within SoL (average SoL for CCs is anywhere from 3-6 years) and you could be sued for it. At the very least, I'd find out the SoL and the TRUE date of last activity (since in some states, that decides WHEN the SoL starts or resets from). It'd be worth it for the peace of mind.

I don't mean to freak you out or worry you needlessly ... it's just that better safe than sorry!! Once the SoL isn't a worry, you can attack this debt mercilessly and get it OFF your CRs!!

Holler back with your state(s) and the other pertinent info I mentioned!!

llecs · ‎09-30-2008

Ditto to Wonderin...

Don't even think about tackling it until SOL expires OR you have the $$$ to PIF. You will see increased collection activity if you DV, PFD, GW, or otherwise look at the OC funny.

And you may not want to do a PFD. if this is your oldest account or older than your avg. credit age, then removing it could hurt you.

Anonymous · ‎10-01-2008

Thanks for the info!

Connecticut is the state.

The account was closed in 11/04. I think the last activity on the account was a payment I sent in Sept 05 (which i think at the time was simply to get them to stop calling).

Its been 3 years now, and im not sure what the laws are regarding Sol here.

Should i continue to not move on this?

As it has been 3 years would they really sue me at this point?!

llecs · ‎10-01-2008

http://www.bankrate.com/brm/news/cc/20040116b2.asp

Your SOL is 6 yrs from DOFD or possibly from last payment. So assume that they can sue through September 2011. And yes, there is a possibility they can sue.

I would save as rapidly as possible to offer a PFD. Once you do that, then you may see an increase in your scores if it was factored into utilization. You also prevent CAs from taking over and you prevent a lawsuit. Win-Win.

Anonymous · ‎10-01-2008

@Anonymous wrote:
Thanks for the info!
Connecticut is the state.
The account was closed in 11/04. I think the last activity on the account was a payment I sent in Sept 05 (which i think at the time was simply to get them to stop calling).
Its been 3 years now, and im not sure what the laws are regarding Sol here.
Should i continue to not move on this?
As it has been 3 years would they really sue me at this point?!

Well, they might ... and they might not. It depends on the dollar amount and how unscrupulous they might be.

LEGALLY, you're out of SoL (CT doesn't reset the clock with payments -- and it's 3 years from the date of last action caused -- meaning, the clock started when you missed your first payment before CO). LEGALLY, you're safe and sound. BUT, a wee thing like SoL doesn't always stop them from suing -- even though some states have extreme sanctions against suing outside of SoL.

I'd not worry about it. Nor would I touch it. As Ilecs said, if you PFD or complain/dispute, they might remove it altogether and it could adverely affect your AAoA.

Anonymous · ‎10-01-2008

@llecs wrote:
http://www.bankrate.com/brm/news/cc/20040116b2.asp
Your SOL is 6 yrs from DOFD or possibly from last payment. So assume that they can sue through September 2011. And yes, there is a possibility they can sue.
I would save as rapidly as possible to offer a PFD. Once you do that, then you may see an increase in your scores if it was factored into utilization. You also prevent CAs from taking over and you prevent a lawsuit. Win-Win.

Well, duh on me. I totally missed that.

For some reason, I just glossed over the Written and glommed onto the "Oral" -- stupid, stupid, stupid.

llecs · ‎10-01-2008

@Anonymous wrote:
@llecs wrote:
http://www.bankrate.com/brm/news/cc/20040116b2.asp

Your SOL is 6 yrs from DOFD or possibly from last payment. So assume that they can sue through September 2011. And yes, there is a possibility they can sue.

I would save as rapidly as possible to offer a PFD. Once you do that, then you may see an increase in your scores if it was factored into utilization. You also prevent CAs from taking over and you prevent a lawsuit. Win-Win.
Well, duh on me. I totally missed that.

For some reason, I just glossed over the Written and glommed onto the "Oral" -- stupid, stupid, stupid.

No, I missed it too. Usually Open SOL is lower than Written. So, I opened the link and saw the 3 as being the lowest and almost responded with that.

Anonymous · ‎10-01-2008

The feedback here is great.

What is AAoA?

Anyways I dont think i want to reach out to them for any reason at all anytime soon.

The balance due is over 17K and there is no way I can pay them that (it was much less however as you know the late fees add up to a couple extra thousand after many months of not paying!)

I currently have around 20 accounts (most in good standing) on my reports with about 13 years of credit history. So i think somehow getting it removed might be the best course of action and it wont impact my scores that much but i could be wrong.

When / if I am able to reach out to them,- what is the best recommended course of action at that point? Removal first and if that does not work, then simply try to pay it down?

THANKS EVERYONE FOR YOUR FEEDBACK!

Anonymous · ‎10-01-2008

@Anonymous wrote:
The feedback here is great.
What is AAoA?
Anyways I dont think i want to reach out to them for any reason at all anytime soon.
The balance due is over 17K and there is no way I can pay them that (it was much less however as you know the late fees add up to a couple extra thousand after many months of not paying!)
I currently have around 20 accounts (most in good standing) on my reports with about 13 years of credit history. So i think somehow getting it removed might be the best course of action and it wont impact my scores that much but i could be wrong.
When / if I am able to reach out to them,- what is the best recommended course of action at that point? Removal first and if that does not work, then simply try to pay it down?
THANKS EVERYONE FOR YOUR FEEDBACK!

Unless you have them on a HUGE legal violation, I don't see them removing unless you paid the balance off (whether via settlement or in full).

Right now, they have the leverage. They can still sue you or just let this pull your scores down ... unless you have some "poop" on them, they have no reason to even entertain removal -- unless you can prove that they can no longer legally collect on the debt. :/

I'd say, let it age and save up to settle, at least. But for good measure, just in case they decide to do something before the SoL's up, I'd make sure to have at least 75% of the balance on hand to avoid a judgment.