I understand that - So what does that mean for me to start discussion with them on remedying this? Like if they only charged off part of the amount, where does that put me in regards to offering a way to pay this money back? If that makes any sense?
You wouldn't want them to. You don't want them updating with a higher past due balance.
The balance that matters is the total balance due. The entire balance is CO'd. If you only paid the $500some balance then they'll only update the balance due less that $500.
I want to pay it, I just can't pay in a lump sum. I guess that is what I mean - can I try to set up payments with them? If so, would I start with what they are showing as the past due amount then make payments from there on the remainder? I'm probably not making any sense.... but basically is it feesible to attempt to work out payment plans with CO accounts?
If it's already CO'd, and not just 2-3 months behind, the best thing to do is save up 100% first -IF- you are inside your state's SOL. You wouldn't want to offer 40%, as an example, and have them reject it and sue for 100% instead. So definitely save first or wait until SOL expires. Once either condition is met, then you can either try the PFD route which is extremely tough with them, or PIF or offer a settlement of less. Unless there's an imminent risk of being sued, you really would want to avoid making payments. Payment plans draw it out, hurt your FICO more, and there's a risk of default with a cancelled payment plan if only one payment is missed.
All 3 are past SOL so I don't need to worry about that, but with me working on repairing my credit, I've had a CA pop up (for the Chase Auto Loan) and am wanting to quiet them before the CA reports to the CRAs. Just was also hoping I might be able to do something with BOA & Cap1 too
If the threat is gone from SOL, I'd just send a settlement offer and see what they say. If accepted, then GW away.