If you have been unable to make payments on your credit cards and the accounts have been charged off, then go through this article to know what should be your next step. You can try to pay off the unpaid balance and negotiate a Pay for Delete Agreement or try to re-open your card. Read on to know what you should opt for.
Should you pay a charged-off credit card?
A charge-off doesn't mean that the creditor is canceling your debt. A credit card charge-off indicates that the creditor has removed the debt from his company's balance sheet. However, when a creditor charges off a credit card, he/she notifies it to the credit bureaus. If a charge-off shows up on your credit report, then it'll make it difficult for you to qualify for a loan with favorable terms and conditions.
The creditor may also sell the charged-off account to a collection agency and in turn, the CA may harass you in order to recover the unpaid balance. So, it is always better to repay a charged-off credit card. Apart from negotiating with the CA to settle your debts or repay the outstanding balance in full, you should also negotiate with the CA to get the credit card charge-off deleted from your report.
However, if the creditor has assigned the debt to a CA, then you need to negotiate with the original creditor to update the account status on your credit reports.
However, before repaying off a charged-off credit card, you can check whether or not the SOL on that credit card has expired. If it has expired, then the creditor or the collection agency cannot file a lawsuit against you for the unpaid balance. However, it may stay on your report for 7 years from the first date of date of delinquency or last activity on that specific account.
Can you re-open a card after charge-off?
Most of the creditors will not agree to re-open your charged-off credit account even if you pay off the outstanding balance in full or negotiate to settle your debts. Moreover, you need to contact the original creditor to re-open a charged-off credit card account. So, you cannot re-open a charged-off card if it has been sold to a collection agency. Even if a creditor agrees to re-open a credit card, you'll first have to pay off or settle the outstanding balance.
Should you negotiate a Pay for Delete Agreement?
You should always negotiate a Pay for Delete Agreement before you start making payments on your charged-off credit card. To do so, you need to send a Pay for Delete Letter to your creditor/collection agency requesting them to delete the charge-off information from your credit reports as soon as you pay off or settle the debts. Make sure you don't start making payments on your charged-off credit card unless you have a written proof that the creditor/collection agency will remove the negative listing from your report(s) once you make the payment agreed upon.
Even if you're not able to delete the negative listing from your report(s), negotiate to update the status as "Paid charge-off" after you settle the debt or pay it off in full. A "Paid charge-off" is better than a "Charge-off" status on your credit reports. The "Paid charge off" status will also help you improve your score by about 35-50 points.
Is this account still owned by the original creditor or has it been bought by a debt collector? If it is in the hands of the original lender then you may be able to work out a pay for delete. Now if it is a collection agency that has the debt before you do anything you will want to send a debt validation by certified mail. If they do not have a copy of the prigianl contract and are not able to show they now legally own the debt I would not pay a penny. If they can not validate the debt you can then dispute it with the credit bureaus and have it removed. There are sample debt validation letters available here under letters of credit on the side of your screen.
Since your account has been charged off in 2004, and you have not made any payment towards the debt since then, you should first check and see whether the Statute of Limitation in your state has expired or not. If the SOL has expired then there is no need to make any payment towards the debt and the charge off will automatically be removed from your report after seven years.
Hi Madlduke
I agree with Mary. You should first find out whether the SOL has expired or not. If the SOL has not expired, send a DV letter by certified mail and wait for 30 days for their response. If the debt has been sold off to a collection agency, then the charge off cannot be removed from your report, but if it is with the OC, you can remove the charge off by coming to a "pay for deletion" agreement with the OC.
However, if it is sold to the CA, you should first ask the CA for DV and on getting proper validation you should pay off the debt by coming to a repayment agreement. After you repay off the debt in full, the debt will be marked as "paid charge off" in your report.
A collection agency took me to court for a credit card . I payed the credit card off. Is their any way I can get the same bank to issue me a new credit card?
Credit Cards
I use to pay my credit cards off in full every month until two years ago. Now I,m in bad standings with this major credit card company. How can I reesstablish my once good credit account with the same company?
Charge off and collection agency
I live in Pennsylvania and the SOl In Pennsylvania the Statute is 4 years for oral, written contracts. So it would be 4 years from the last activity on a credit card (ie 4 years from the last payment you made before the account went late) I chceked my credit report and it shows last payment was Dec 2004before the debt went late. It since then has been charged off but today I had a collection agency call me to pay on it. Am I correct if I tell him the SOL has expired? They are threatening to have a sherriff come to my house and sale my possesions. What can I do?
Needy, Yes the SOL has expired. If you make one payment you will restart the SOL. I too live in PA and have a couple old debts. One fell off and they still contact me. About this time evrey year, near income tax, they start sending letter and ringing the phone off the hook. I will not pay because these debts are owed by collection agencies now and they can be heartless and harrassing. You sre best just to avoid talking to them and let it fall off your credit report in seven years.
Also they can not send a sheriff to sale your possesions. They can go to court and file a summons against you. You would win regardless due to the SOL. I would report them to the FTC and atty generals office and you will see how quick they quit calling. Also send a cease and desist letter by certified mail. If they contact you after that they will be fined.
Re: Charge off and collection agency
I am told that the charge off once sold to a collection agency, the agency put a judgement against us and they CAN send Sherriff's to sell our possesions. That when there is a judgement there is a 20 year SOL. Is any of this true?
If your account is charged off by the original creditor and is sold off to a collection agency, the collection agency can bring judgment against you either to garnish your bank account or to garnish your wages. The SOL on judgment is 4 years in PA. Now, once there is judgment against you, the creditor either sends an income execution notice or a bank account execution notice to the sheriff who in turn sends the notice to the debtor. Now the debtor have to reply to the notice within 30 days where he can either come to a repayment agreement and pay off the debt to the creditor or the sheriff will send the notice to the employer or the bank and your income or your bank account will be garnished.
Is this considered validation?
I sent validation letter to CA Attorney and received back some copies of credit card statements. I then sent them a second letter stating my request for validation had not been met. I never had a card with capital one. I did not getr proof that they own the debt or were assigned the debt and a copy of a signed contract between me and OC. They keep sending me copies of the fine print contracts.. but no copies of a signed contract or proof they own the debt. Is this considered validation? I have called the Capital One, they have no record of an account under my social security. I will be sending them a debt validation letter as well since they have reported on my credit as Charge off. I think the CA is trying to serve me with a summons via registered mail, but I am refusing it. What to do???? Not sure what is considered validation.
As far as I know, it is not a proper debt validation. The collection agency must prove that they have either purchased the debt from the original creditor or the original creditor has given them the right to collect the debt. Moreover, they must send you a copy of the original signed contract.
If the CA has sent you a summon, you should accept it and file an answer to it, else the CA can bring default judgment against you.
I agree with Carol. You should never refuse summon, because even if you refuse it, the creditor can bring a default judgment against you. Moreover, if the creditor does not properly validate the debt and sue you to the court to recover it, they cannot bring judgment against you. But for that you should file a response to summon and be present on the court date to defend yourself.
credit card default that has been charged off
I have been served papers for default on a credit card. This has been charged off - the account was opened in 2001 and the charge off occurred in 2005, I live in Georgia. What are my options - what do I need to do?
Desperate
Statute of Limitation in Georgia is 4 years for credit card debt and so you should check the date of your last payment towards the debt. The SOL begins after 6 months from the date of your last delinquency. If the SOL has expired, then you are not required to pay it off. But if it has not expired, then you should come to a repayment plan with your creditor and pay off the debt.
Call from another Collection Company
I had been receiving calls from an Atty's office in South Carolina about a charged off credit card. Today, I received a call from a company in Houston, TX about the same credit card and that I owe almost $9,000 because I couldn't work out something with the Atty. in South Carolina. The company said to settle they would work out something with me like taking off the previous Atty's fees and cost, plus the owed interest. I have contacted the Federal Trade commission regarding the first attempt to collect this debt. The FTC said that these people must have a license in PA to attempt collection how true is that, and when these people call they will not give you any information about their company so that you are able to send them a letter to validate that debt.
Capital One
I had a card in 1999 and it went into default in 2000, charged off in 2001. It hasnet been on my credit report until now (2009) as a collection agency has purchased "charged off" debt. What do I do?
charged off credit card account
I called the collection agency that bought my credit card account and they will not let me mail in payments. Is that legal?
Confused, You need to check the SOL on your debt. If the FTC knows they have an License in PA then surely they would know the address to send a validation letter. You could also try to call your atty generals office and see if they can help you.
Dee, You need to file a dispute with the credit bureaus because this debt is past the 7 year reporting time.
Brenda, It is legal for them not to accept payments. If it would go to court the judge could agree to payment arrangements. I am surpriesed the will not agree since you are trying to repay the debt.
CC Charge Off
The credit card debt is four years old but I just checked my credit history and they are listing it for this year as a charge off. How can I change this so that it will fall off after seven years from the date of default? I have received letters from Collection Agencies in the past but not one of the agencies is listed only the original bank credit card.
credit card
a credit card has turned over to collections it was charged off in 2001 it says last payment was 2006 im in alabama its not showing on my credit report
credit card
Hi Malissa,
A charged off account stays on your credit report only for 7 years. After that the charge-off falls off from your credit report. However, the Statute of Limitations (SOL) on your debt has not expired yet. SOL is the time limit within which the creditor or collection agency can sue you for non payment of the dues.
However, if the collection agency tries to collect from you, you can first send them a "debt validation letter". You will get a sample validation letter at http://www.creditmagic.org/repair/sampleletter-debtvalidation.html .
Hope this helps.
Regards,
Aaron
charge off
hi i have a bad debt charge off the date it says paid was april 2006 i live in pa thanks
charge off
Hi,
Can you mention clearly what exactly you want to know?
Thanks,
Aaron
Suggestion, posters, it would help you if you register and then when you come back you have the same name and the people who are answering will know that it is the same person, besides you earn money when you post. Like on this one there is three different people who could all be the same one. You don't have to if you don't want to, but it is helpful to the people answering the post too. :)
hi i have a bad debt charge off the date it says paid was april 2006 i live in pa so am am i over the state of limations in pa
staute of limitations in PA
Hi missqueenie,
The Statute of Limitations in Pennsylvania for all kinds of debts is 4 years. Thus, as you had made the last payment in April, 2006, can you tell the exact date?
Thanks,
Aaron
chargeoff
hi no i cant this was a write off the payment was not from me all it says is write bad debt paid april of 2006 thanks
CHarged off Account
What about an acoount that was charge off I belive in iSeptember of 2002. I'm not sure but I know it's around then how can I find this information and how do I get it removed from my account if it has reached it's statute of Limitations?
Thank you
charge off
Hi missqueenie & Bruce:
You both need to pull your credit report. The date and year will be mentioned there.
For removing the charge-off you need to pay of the dues to the original creditor. For that you will have to request the creditor to pull back your account from the collection agency. Once it is done, you need to request the creditor to agree to a "Pay for delete" (PFD) agreement. With PFD the charge-off will get removed.
Thanks,
Aaron
credit card charge off
hello, I had two credit cards in 2004 and the cards charged off recently. One of the credit cards went to a collection agency and I agreed with the collection agency to make monthly payments on the card for the next two years. The amount owed is about 2000. Should I have agreed to make payments? Will it still fall off in 2011 or will the date of activity change?
statements from charged off credit card
Hi Carol, I need proof of purchase for some warranty work on a speaker I purchased from Circuit City [now closed] in 2009. I don't have the receipt and wondered if the c/c company is still obligated to provide me with any back statements since it c,harged off a while back because of non payment...What do you think? Thanks, Tom Miller
Capital One Charge off
Capital One took me to court I represented myself as Pro Se Litigant. Demanded they prove the account was mine I wanted to see hard copy contracts with my pen & Ink signature they could not prove it and dropped the case. I went to the credit bureau and said this to them and said, If capital one cannot prove to the courts this is my account how can they prove it to you? I also told the credit bureau i wanted them to obtain hard copy documents from capital one to prove this is my account if they cannot get it in 30 days they have to remove it from my file!! they are playing head games but I sent a certified letter to the Credit bureau with the letter from the courts showing capital one could not prove it was my account. By law they should have to remove the charge off off my credit file if Capital One cannot prove to the Credit Bureau that this is my account. Other wise its like putting bogus info on anyones account and saying you owe it even if I cannot prove yiou owe it ...it stays on your account!!
public record
after publicrecord and collection agency calls to attemp a debt collection... what is the proper way of handling... especially if they are threathining to garnish your wages?
Closing accounts
I have default on 4 loans with various local payday loan companies Oct 2007. These are being reported as a charge off on my credit report.
I have contact a couple of the companies to make arrangements to re-open the accounts for Paid as Agreed. However, I was told that if I re-open the accounts the best they can offer is Paid-Charge Off. I was given the option of a settlement for half the amount. Which would be reported as settled.
I know the SOL if 4 years in Texas but I would like to close these accounts out. What is my best option for me?
charged of credit card
my creditor wants me to send them my check stubbs from work and 2 months bank statement, should I do it? Also what does an SOL mean?
charged off cc that no longer appears on credit report
I have been making a payment each month for 3 years to a credit card that was closed, charged off, turned over to a collector and now no longer appears on my credit report anywhere. I had two accounts with this creditor. One account was closed in good standing where the other due to financial distress I could no longer keep up the regular payments. I sent them a letter over 3 years ago stating my situation and the terms under which I could pay. They have never responded to me except in the mannerof form letters (which includes te collection agency) that never acknowledge anything that I said to them. 3 months ago they began applying the payments I send to the other closed account number that was never in arrears and had no balance. I sent them a letter each month these past 3 months with my payment as usual stating they were applying the funds to the wrong account number. A few days ago I received a refund check from that account for the last 3 payments I have sent. The account that I was paying on no longer shows on my credit report. I am now in a quandry as to whether to continue sending the payments for that account and to write yet another letter to the address that was used on my previous credit report when they were still posting it as a bad debt. That entry did say "charged off as a bad debt" and I have heard not one further word from the collection agency since my last lettert to them in Oct 2010. Please advise whether I should continue the good faith payments that I have been submitting these past 3 years. Thank you
credit cards
we hv had capital and jcpenny since 1988 . paid capital off twice now no income. paid jcp in 08 $2000 on account. very much up in age. husband 80 under doctor care and a vet. now collection. we had always paid our debt. what now.
still want to pay but afraid to trust the collectiona gency
The account has been dropped off of my credit report and I recieved a letter in the mail from FIRST NATIONAL, giving me a payment plan.. I want to pay it but I wonder if they will except a western union payment and if they refuse then what should I do next?
Credit card charge off
My credit card is being charged off as of 3/26/11. I am able to make partial minimum due payments but not what they're asking. Will the agency garnish my wages even though I'm making payments?
charge off
i have a charge off on my credit report. at first it was about 5 years old i dont remember it so i dispute it last year. and they came back and said it was mine. but when i pull my credit report this year i notice they had up date it the month i diaspute it. my question iswhat should i do? should i try and pay it
Credit report
If my charge off acoounts will disapear from my credit report in 2013 & 2014, if I begin making payments now will it stay on my credit report longer?
credit
yes...if you make payments on it now, you will end up 're-aging' the loan. Which means the SOL (Statue of Limitations) will start over. For example..if you had a loan that 'dropped off' your credit this year (let's assume the SOL is 4 years) and you started making payments on it this year, you just 'started over' with the SOL. The debt wouldn't come off for 4 MORE years and the CA could sue you within that time. usually the SOL is 7-10 years, depending on what state you live in. After 4 years of no activity of the bad debt (you didn't pay anything on it) the CA's/lenders cannot sue you. The SOL starts after the first deliquent payment. Hope this advice helps.
charge off
i was off work for 1 year and havent paid a credit card bill . my debt is 12,000. the credit card companies are offering a 50 % off should i do this or declare bankrupty.
VALIDATION OF DEBT.
IF A SUMMONS HAS ALREADY BEEN SERVED, CAN I STILL ASK FOR VALIDATION OF THE DEBT OR IS IT TOO LATE FOR THAT??. IF IT IS NOT TOO LATE, DOES IT HAVE TO BE WITHIN THE 30 DAYS. I HAVE ALREADY RESPONDED TO THE SUMMONS BUT NEVER DID ASK FOR VALIDATION OF THE DEBT. THANK YOU.
Charge Off Account
I have a debtor that charged off a loan account that I was sending them $100.00 a month. They stopped sending me a bill, but I continued to send them $100.00 a month every month. They stopped sending the bills when i told them I could only send them $100.00 a month, when my pay at work and my husband's pay was cut. The reported to the Credit Bureau that they stopped receiving payments in Feb 2010. This was not true. i have sent them payments since 2006 to present. Was this legal and there anything that I can do about this? I have been summoned to court about this debt.
your discussion on charge-offs
what is an SOL? You referred to it as having an expiration date but I do not know what an SOL is. Thank you.
iUwCRpflOaviS
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Laid Off
Carol
I had been making payments on one of the charged off account however, I recently became laid off and unable to make the payment. When I call to report this matter the cc company allowed me to skip a payment but I am still unable to pay. What are my options if any?
Credit card debt
i had a capital one credit card that shows up on my credit report as charged off its been 4 years since they first wrote it off and 6 years since the first delinquency in that time frame i have not heard from any collection agencies. i don't want this to come back up later down the road so should i try to reach out to them about this or since i have not heard anything does this mean they did not sale it in to a collection agency. i live in GA and i read that the Statute of Limitations is four years.
Payments now?
My husband has a credit card in collections(charge off-CitiBank). He is going to sell his truck to pay (not yet negotiated) settlement. They are wanting us to make payments right now and when the truck sells they said they will negotiate a settlement. I am not sure if that is the right thing to do?
FYI, this is a credit card(for his business) that I had no knowledge of and he neglected to tell me when he was behind on payments. This resulted in the interest rate jumping to 30%. He still never said anything to me about it:( Can't change the past so I am trying to work through something that I have NEVER had to deal with before.