What to do with Charge Off's, Need some help

[frio]

Hey Everyone ,
I once had a 710 fico only to let it slip away back down to 550, but I am now looking to bounce back my credit, now that I have a much better job.  I am currently dealing with a judgement that was settled as satisfied as full, and now that will put a ding on my score/  How ever I am going to try and vacate that due to a few issues I see may be important.  Now to the Charge off...

I have the following charge off.  Discover card was PIF.  All the others I want to work on.  So far nothing in Collections.

Any good starting points on what to do.  They are all due to drop off years from now so it will be a while for that.  I am thinking of settling some if possible to at least lower the balance and hopefully bring up my score a little and then pray I can get some taken off or TL's or anything.  I dont know where to start.

Capital One Bank Usa		6/2011	$1,012	Charge-off		Details
Capital One Bank Usa		5/2010	$622	Charge-off		Details
Navy Federal Cu		4/2011	$14,839	Charge-off		Details
Chase Card		9/2012	$4,786	Charge-off		Details
Discover Bank		2/2013	$0	Charge-off		Details
First Premier		2/2010	$696	Charge-off		Details
First Premier		11/2008	$895	Charge-off		Details
Capital One		7/2011	$0	Pays account as agreed

[RobertEG]

The most immediate concern with any reported charge-off is that things can easily get worse.

First, if still within SOL, they can file a civil action seeking a judgment.

Second, after reporting a  charge-off, the next step is often either referral to a debt collector for continued assistance in obtaining payment of the debt, or sale of the debt to a debt buyer.  In either case, the debt collector can report a collection.

Additionally, once a creditor has sold the debt, you can no longer offer any payment to them, including seeking any PFD.

Steps to avoid referral or sale to a debt collector, other than simply paying, might include negotiation of a payment plan with the condition that they not refer to a debt collector as long as you continue to make he agreed payments.

However if you you enter into a payment plan, you will reset the SOL, so be sure you can make the agreed payments before entering into any payment plan.

[frio]

Hey Robert,

Interesting you mention "Once the orginal creditor has sold the debt you can no longer offer any payment to them".  Yesterday Capitol One wanted to offer me a one time settlement price if I was willing to pay it this day.  That being said, I told the lady I have no idea what the total amount is so I was unable to make that promise to her.  She responded by telling me call back later this week, because I told her I would have a better chance then and we could discuss it further.  I get home and have a letter that says that Cap1 sold the account to Recovery Portfolio and they will be trying to collect this debt now.

[frio]

i have just found out that my Chase account as of today is back with Chase.  The file will be reviewed by Friday 6/9 and they will be able to give me options on the account.  Is there anything I should do since the files are being reviewed and it is back with Chase?

[gdale6]

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@frio wrote:

i have just found out that my Chase account as of today is back with Chase.  The file will be reviewed by Friday 6/9 and they will be able to give me options on the account.  Is there anything I should do since the files are being reviewed and it is back with Chase?

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Yup, get it settled with them before they send it off to another collector or sell it to a JDB.

[Anonymous]

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@frio wrote:

i have just found out that my Chase account as of today is back with Chase.  The file will be reviewed by Friday 6/9 and they will be able to give me options on the account.  Is there anything I should do since the files are being reviewed and it is back with Chase?

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If I remember correctly Chase did this DDs account right before they sent into "In House Counsel" for prep to take her to court...she got served and called their number and set up payment plan before court date. Conditions were amount she could afford to pay ($65), Chase removed filing request but they required her to do auto pay with them and then if she missed payment or NSF, Chase would immediately cancel agreement and go forward with court...She was a dum dum and missed a payment 1.5 yrs into agreement and Chase did exactly what they said they would do...court found in Chase favor and they got her good..sigh (her original debt was around 6k, by the time court..fees..ect she got naild for close to 10k)

If you are still under your states SOL and If this is what Chase is doing..call them and work out a payment plan...just never promise more then you can really afford

wishingyou well

[frio]

Yeah, I will def be calling them Friday to set something up, I would like to get this hanled, and taken care of before it goes further.

I am guessing having negative TL or entire entries removed from charge off will be difficult.  However if I "settle in full" can it should bring my balance down and points up a little I would assume or am I way off?

[Anonymous]

Are the following accounts still reporting on your credit report? 

Capital One 5/2010

First Premier 2/2010

First Premier 11/2008

If so, those accounts are way past the 7.5yrs that a charge off is supposed to show on your credit report and you should call the credit bureau's to get those deleted due to age. OR, are the dates you provided the dates that you opened the account? If the dates you gave are the dates you opened the account, then what is the DOFD(Date of first derogatory)?

[Anonymous]

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@frio wrote:

Yeah, I will def be calling them Friday to set something up, I would like to get this hanled, and taken care of before it goes further.

I am guessing having negative TL or entire entries removed from charge off will be difficult.  However if I "settle in full" can it should bring my balance down and points up a little I would assume or am I way off?

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Paying the original creditor won't affect how the TL is reported.  If a comment is written that says "settled in full" it still doesn't matter -- it will report for the full 7 years from DOFD.

That being said, if they are reporting a balance, it does affect utilization terribly so when you get new credit cards, your utilization will be over 100%.  Paying down those balances to $0 will help with utilization only.

On top of all that, paying them in full (even if over time) may put you in a position to request a goodwill removal of the account at a later date, after the account is paid.  I only paid off one of my chargeoffs to the OC because they manhandled it back from a debt collector.  I paid it in full in one payment ($4300).  60 days later I wrote just ONE letter to their finance VP asking for a goodwill removal of the chargeoff portion only, and he emailed me and said they will just delete the account entirely.  A few days later, it was gone from EX and then gone from TU and EQ a few months later.

He specifically said in the email something like "Since you paid the account in full, we will no longer be reporting it at all on your credit reports."  If I had settled it for less, I don't know if they would have accepted any goodwill adjustment.

I refuse to pay collection agencies that don't have proper paperwork, licensing and legal right to collect a debt.  I will always, always, always ask/beg/demand the OC to recall a debt.  I never paid a JDB since those are easy to countersue in court with their lack of any real information on a debt.

[frio]

@rookie08

They are still reporting on my credit yes, however they did not go into charge at those dates they were just opened on those dates, I belive its 7 years from Last activity or deliquancy or something to that affect.