Question about a couple of C/O's

Anonymous · ‎05-02-2018

If anyone could help me with these it would be greatly appreciated. Thanks!

First off a Daniels account, recent balance $664, amount charged off $864 and balance is $590. Shouldnt these numbers all be the same?

Next is Merrick Bank. Recent Balance $1837, amount charged off $2267 and $1837 past due. This is correct, I had set up payments after the account was charged off, for some reason they stopped taking the payments out of my account. Question I have at the bottom is says Account history origninal amount of the account is $376? This doesnt make sense to me?

Anonymous · ‎05-07-2018

Anyone?

Anonymous · ‎05-07-2018

The way I read the 1st account is $864 was the total balance on the account and it was written off. Current balance is $590. Are you making payments or made some kind if payment that posted after it was written off? You disputed this according to the notes. What was your dispute based on? It is possible that the $590 was the amount determined after reviewing the dispute.

Merrick Bank is most likely charging interest and fees on your original balance. If it went to court, they add other fees. Negotiating a pay off for a much lower amount is your best bet. If it gets sold to collections, the negotiations could be much easier.

Just an FYI - These 2 balances will count against your utilization and hold your credit scores back even further than just a collection or write off does.

RobertEG · ‎05-07-2018

When a creditor reports a charge-off, the CRA provides two codes for balance information.

They provide a code that retains the amount that is originally charged-off for review by anyone interested in detailed account history. That does not change if/when the current balance changes, either upward is interest or other fees are assessed, or downward if payments are made.

In calculation of current utilization of a credit card, the current balance is used, not the amount originally charged to profit and loss.

In the posted scenario, the creditor is continuing to report the current delinquency status as CO, which is effecting scoring by stating that the period of delinquency is being extended. Once the debt is repaid, the current status must then be reported as a non-delinquency status (e.g., "Paid"), which will terminate any extension of period of delinquency, and will also remove the account from % util scoring.

Anonymous · ‎05-07-2018

@Anonymous wrote:
The way I read the 1st account is $864 was the total balance on the account and it was written off. Current balance is $590. Are you making payments or made some kind if payment that posted after it was written off? You disputed this according to the notes. What was your dispute based on? It is possible that the $590 was the amount determined after reviewing the dispute.

Merrick Bank is most likely charging interest and fees on your original balance. If it went to court, they add other fees. Negotiating a pay off for a much lower amount is your best bet. If it gets sold to collections, the negotiations could be much easier.

Just an FYI - These 2 balances will count against your utilization and hold your credit scores back even further than just a collection or write off does.

No, I have not made any payments on this account after the orignal charge off. Yes, I disputed the balance.

Both accounts are beyond SOL so I dont think they can take me to court.