charge off /collection notation

[Anonymous]

Hello Everyone

i am new here and new to debt resolution.  I am trying to pay off my bills and get my credit score up so that I can buy a house. Most of my credit cards are in collections. I have been through a lot of financial hardship but should be truly back on my feet soon. I  have received collection letters but not all of the CA are listed on the experian credit bureu report. .If i send a PFD what happens to the notation on the account that says charge off/collections? 

Please advise on my best course of action. I really want to be free from debt!  

thanks,

freefromdebt 

[Anonymous]

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freefromdebt wrote:

Hello Everyone

i am new here and new to debt resolution.  I am trying to pay off my bills and get my credit score up so that I can buy a house. Most of my credit cards are in collections. I have been through a lot of financial hardship but should be truly back on my feet soon. I  have received collection letters but not all of the CA are listed on the experian credit bureu report. .If i send a PFD what happens to the notation on the account that says charge off/collections? 

Please advise on my best course of action. I really want to be free from debt!  

thanks,

freefromdebt 

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If you send a PFD and they accept, then the whole account will be removed from your CR.

Before we can give you advice, we need to know DOFD, DOLA, SOL for your state.

You can find SOL here -

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

Guide to common abbreviations(partial guide)

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=3866

[Anonymous]

thanks for answering and thanks for the list!

DOFD--probably 6-8months ago

DOLA---all within a year's time 

I tried to save the accounts from going to collections but either the minimum due was too high or I didn't have any extra money to pay for the bills.  Its a true mess.

to clarify when i look at the credit report the original creditor is listed but no collection agency is listed just the notation: collections/charge off. I am just wondering what will happen to that notation, since the PFD is for deleting listed collection accounts (I only have two listed on my credit report). 

[Anonymous]

While I haven't seen the PFD letter, be sure that you get in writing from the creditor that they will delete the delinquency from your report BEFORE you remit payment.  If you pay them, then request a deletion, you have essentially lost any leverage. Remember, they want to be paid and you want a deletion.  At this point, it is a win/win situation. Also, you should be prepared with cash in hand to negotiate effectively - of course you're not paying with cash - but if you are prepared to pay the amount you owe or a lesser agreed upon amount, you'll be less likely to lose the deal because you you'll have the money to pay up according to the terms of the agreement.

[Anonymous]

Hello FreeFromDebt,

You can craft the letter to be applicable the original creditor.  The entire account information will be deleted from your report if the creditor agrees to delete the account (so you don't have to be concerned about the notation of charge off/collection because the entire account information will be deleted - almost as if it didn't exist).

Renae

[Anonymous]

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freefromdebt wrote:

thanks for answering and thanks for the list!

DOFD--probably 6-8months ago

DOLA---all within a year's time 

I tried to save the accounts from going to collections but either the minimum due was too high or I didn't have any extra money to pay for the bills.  Its a true mess.

to clarify when i look at the credit report the original creditor is listed but no collection agency is listed just the notation: collections/charge off. I am just wondering what will happen to that notation, since the PFD is for deleting listed collection accounts (I only have two listed on my credit report). 

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Being so recent, it is possible that they have not been sold/assigned to a CA yet.

You can PFD a CA or an OC.

Are you able to PIF now?

If you are able to PIF, you can try to negotiate a PFD with the OC or try to re-establish the account and turn it back into a positive account.

If you dont' want to PFD the OC and have the entire account removed you can try to negotiate an agreement that if you PIF they will remove the collection/charge off status and the lates and just mark the account paid/closed.

Have you received letters from CAs?

It is always best to deal with the OC if possible.

[Anonymous]

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Renae wrote:

While I haven't seen the PFD letter, be sure that you get in writing from the creditor that they will delete the delinquency from your report BEFORE you remit payment.  If you pay them, then request a deletion, you have essentially lost any leverage. Remember, they want to be paid and you want a deletion.  At this point, it is a win/win situation. Also, you should be prepared with cash in hand to negotiate effectively - of course you're not paying with cash - but if you are prepared to pay the amount you owe or a lesser agreed upon amount, you'll be less likely to lose the deal because you you'll have the money to pay up according to the terms of the agreement.

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We see it this way, however when the debt is still within SOL, the creditor sees it differently. You are still legally obligated to pay, whether they remove or not and they have the courts to back them.

[Anonymous]

Thank you for answering back.  forgive me for my inexperience, but are you saying that the whole

listing will be deleted? ..

example:

Dillards card  xxx8989  chargeoff /collections

The whole listing from the original creditor will be deleted?

?

I thought it was just credit agency listing:

example:

Credit Agency Incorporated   xxxx9999

Thanks!

[Anonymous]

Point of clarification...Whether the debt is within or beyond the SOL, it is mutually beneficial for the creditor to be paid and for the debtor to get a deletion.  The 'win/win' simply means both parties can get what they want with respect to the account. I was not making any representation on the creditor's ability to pursue the debt in court.

[Anonymous]

An original creditor can agree to delete the account that they report.  Just be certain that you negotiate that point with the actual original creditor.  The entire listing will be deleted.