To pay or not to pay a charge off

Anonymous · ‎09-08-2008

Question, I have a charge off from November 06 for a company (not a credit card but a installment loan) and I am thinking about doing a PFD. I have read a couple of things that if you send a PFD and they don't accept (since it is in SOL) then they can come back and sue you at a later time because you (in someway admitted fault).

So my question should I (I can afford to do it) send off a PFD to the company and hope they accept or should I let it go since it is almost 2 years old and won't impact my score as badly?

Anonymous · ‎09-09-2008

COs may be helping more than hurting...if you get this deleted...you may lose history...and your scores will go down...but it may be worth it...is it past SOL???...if so....send the DV letter first...then the PFD letter...

Anonymous · ‎09-09-2008

If within SOL, they can sue you whether you send a DV/PFD or not. As far as resetting SOL, the PFD example letter states " you dispute the validity of this debt", but you are willing to pay it.

Is it the OC reporting or the CA? If the OC, you need to tweek the PFD example letter on here, as it is geared towards a CA.

Slyhouse is right.....if the OC is reporting, it could be helping your age. When was the account opened?

Message Edited by sidewinder on 09-09-2008 02:23 PM

Anonymous · ‎09-09-2008

It is in SOL, from 2006. I know this debt is mine and I am not disputing that I just thought paying it in full and seeing if they would take it off would actually help my credit.

However what if I just pay off the collection but leave it on there (like you said) would that help or hurt my credit. I have items on my credit that are from 2001 so I don't see how the time will help me that much.

I just need some guidance on what would be the most beneficial for me to do since we are looking to buy a house in a year.

Oh yea it is with the OC still (it has never gone nor do I believe it will got to a CA)

Anonymous · ‎09-09-2008

Does FICO use the date an account it opened, or the date of last activity to consider age for the score?

Anonymous · ‎09-09-2008

Date open.

likewise wrote:
Does FICO use the date an account it opened, or the date of last activity to consider age for the score?

Anonymous · ‎09-09-2008

Figure your average age of accounts with and without this account.

creditissooverrated wrote:

It is in SOL, from 2006. I know this debt is mine and I am not disputing that I just thought paying it in full and seeing if they would take it off would actually help my credit.

However what if I just pay off the collection but leave it on there (like you said) would that help or hurt my credit. I have items on my credit that are from 2001 so I don't see how the time will help me that much.

I just need some guidance on what would be the most beneficial for me to do since we are looking to buy a house in a year.

Oh yea it is with the OC still (it has never gone nor do I believe it will got to a CA)

Anonymous · ‎09-09-2008

FICO reads a CO paid or unpaid the same! You want it off your CR if it can be done.

sidewinder asked you who is reporting....there is a reason for this question. If it is the OC then you do 1 thing and if it is a CA you do something else.

If a CA you would DV before anything else!!!

Scores go by length of history & adv.history. Longest history would be the first account that you opened.

Anonymous · ‎09-21-2008

The OC is reporting, I don't think I should DV they know I owe this and I am sure they can verify it with no problem. Should I send a PFD for this account of course I will PIF?

Any help would be great.

Anonymous · ‎09-21-2008

If you can afford to PIF, yes, try to negotiate a PFD.

If the CO is for a CC account, you can try and contact the OC to see if the account can be rehabilitated and brought current again with negatives removed. It's a longshot, but then you get the best of both worlds: the LOSS of a negative mark, and the ADDITION of an account in good standing with some history.