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Subject: Advice regarding 2 Charge-Off Accounts
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Thu Mar 15, 2007 6:58 pm
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Hi all,
I'm a newbie to the forum. I've found a lot of helpful information on this site so I thought I'd ask for a little advice.
My situation is that I ran into some financial problems a few years back and had to let 2 credit cards slide. These accounts have since been charged off and are now with 2 seperate collection agencies. I only receive calls/letters from one of the CA's (they handle just 1 of the accounts). The accounts show the Date of Last Activity as 6/2004 and 1/2005. I am in NC so the SOL on these accounts in 3 years so I still liable to be sued for the balance of both accounts...even though I've not received anything along these lines as of yet.
I know these 2 accounts are damaging to my credit (even though I have other currently open accounts that are in perfect standing and all other accounts in my history are perfect as well) but are they worth trying to resolve? This is not the best time as I am losing my job (after 8 years) as a result of company downsizing at the end of this month. The good news is that I am getting a pretty decent severance package. Assuming I can land a new job in the next few months, I was debating trying to use some of my severance package money to resolve these charge off accounts by negotiating a payoff. The balances for each are around $8K so I unless they will take less than $5K for both ($2500 each), I probably can only afford to take care of 1 account. I can work on the other account down the road once I get back on my feet and get some money saved up.
Is it worth it? How much will this help get my credit going back in the right direction?
Thanks in advance for the help! |
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djroygbiv
Joined: 15 Mar 2007
djroygbiv's page
Posts: 3
293 Magic Points
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Thu Mar 15, 2007 7:00 pm
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| Oops...that was me by the way. I just registered today but I guess I got logged out and it showed my post by "guest." |
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djroygbiv
Joined: 15 Mar 2007
djroygbiv's page
Posts: 3
293 Magic Points
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Mon Mar 26, 2007 3:55 pm
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Also, I just noticed that I also have a negative entry for an apartment complex I used to live in. Basically my girlfriend was being verbally assaulted by our neighbors and we bolted early....before it turned into anything worse. There was only a month or so left on our lease and I told the office and they said it would be find and they could probably rent it our early and we'd be fine. My mistake (and stupidity) for not getting this in writing but after we moved out they sent me a bill for all these "early move-out" penalties and such. Basically I paid a full 12 months of rent but our move-in special was a $50/month rental discount coupon. The lease said if you broke your lease (which we really didn't), you'd be responsible to reimburse them for all these amounts....plus penalties.
How long can this remain on my credit report? This happened back in 2001 and was not on my report for a few years but popped back up in the past year. The date of 1st deliquency is listed as 6/2001 (we moved out in May 2001 if I remember correctly) but the "status date" is listed as 8/2006. It says the "date assigned" is 8/2001 as its only been with 1 (the same) CA the whole time.
We bickered back and forth for several months but nothing was ever resolved. Basically I paid them a full 12 months of rent (and they kept my security deposit) so I don't think they had any grounds to try and collect the penalities mentioned above. Even though I wasn't there, I satisfied all 12 months payments of my 12 month lease so I don't see any way they can charge me the penalties....and they never gave me any answer to why they felt they could.
Will this drop off at any point? Should I try to dispute it with the Credit Reporting Agencies to try and get it removed? Its been 6 years now....the balance is about $900 or so by the way. |
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ParkAvenue
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Joined: 26 Mar 2007
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Posts: 47
Location: Florida
3872 Magic Points
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Tue Mar 27, 2007 7:28 pm
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| Quote: |
Hi all, I'm a newbie to the forum. I've found
a lot of helpful information on this site so I thought
I'd ask for a little advice.
My situation is that I ran into some financial problems
a few years back and had to let 2 credit cards slide.
These accounts have since been charged off
and are now with 2 seperate collection agencies.
I only receive calls/letters from one of the CA's
(they handle just 1 of the accounts). The accounts show
the Date of Last Activity as 6/2004 and 1/2005. I am in
NC so the SOL on these accounts in 3 years so I still
liable to be sued for the balance of both accounts...even
though I've not received anything along these lines as
of yet. |
First of all, are both DOFDs (6/2004 and 1/2005) correct?
I had discovered that the CAs will bring legal action, in the
year that the SOL is due to expire. That would be in 2007
and 1/2008, IF these dates are accurate.
Since we all know that CAs are known to lie about the
DOFD. Think hard about when you last made a payment
to determine the exact DOFDs. Also, what is the DOFD
that the Original Creditors are reporting? The CAs must
report the same exact DOFD.
Note: Answer these questions, and I will come back, later |
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ParkAvenue
Moderator
Joined: 26 Mar 2007
ParkAvenue's page
Posts: 47
Location: Florida
3872 Magic Points
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Tue Mar 27, 2007 7:53 pm
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| Quote: |
How long can this remain on my credit report?
This happened back in 2001 and was not on my
report for a few years but popped back up in the past
year. The date of 1st deliquency is listed as 6/2001
(we moved out in May 2001 if I remember correctly)
but the "status date" is listed as 8/2006. It says the
"date assigned" is 8/2001 as its only been with 1 (the
same) CA the whole time. |
When it popped back up, the CA is required to pop
up and send a Validation Notice within five days.
The illegal "status date" is saying that the collections
account is a mere 7 months old for FICO scoring,
which is not true. This illegal reporting tactic suppresses
your credit scores.
This alleged account should drop off automatically on
6/2008. Period. If it does not, then you should
Dispute with the CBS as Obsolete Information.
Right now, if you so desired, Dispute with the CBs
and DV the CA. Remember, they must be able
to prove that what they are reporting. And it must
be 100% accurate. Since it is six years ago,
may be the rental office misplaced some paperwork.
Note: June 2008 will be here before you know it.
Then its, bye-bye  forever !!! |
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djroygbiv
Joined: 15 Mar 2007
djroygbiv's page
Posts: 3
293 Magic Points
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Tue Mar 27, 2007 8:20 pm
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Thanks for responding Park!
Is DOFD "Date of First Deliquency?" The dates I gave in my initial post above (6/2004 and 1/2005) are whats listed is as "Date of Last Activity" on my credit report I pulled from Equifax. 1 of the accounts has an entry in the section for "Date Major Deliquency First Reported" of 3/2006. The other account doesn't have anything in this section. Looking at the 81-month payment history grid, I paid as agreed from 2/2000 (when the account was opened) until it shows me 30 Days past due in July 2004. On the other account, I paid as agreed from 2/2001 (when account shows being opened) until October 2004 when it shows me 60 Days past due. Thinking back, these dates sound about accurate....I probably last made a payment in 2004 sometime.
I forgot to mention that although I am getting phone calls and mail from collection agencies, these accounts are reporting under "Negative Account History" on my report (but not under "Collections") under the original creditors still (Chase and Citibank). There are no entries currently on my credit report for the Collections Agencies these accounts are apparently assigned to.
As for my 2nd issue (with the apartment complex), it currently shows on my credit report under the "comments" section that "customer disputes balance due" so maybe I'll just ride it out until next year. The lease on my car is up next April so thats the next time I anticipate having to obtain financing/credit. |
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ParkAvenue
Moderator
Joined: 26 Mar 2007
ParkAvenue's page
Posts: 47
Location: Florida
3872 Magic Points
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Subject: Additional information ...
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Wed Mar 28, 2007 5:29 am
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| Quote: |
| Thanks for responding Park! |
You're welcome!
| Quote: |
Is DOFD "Date of First Deliquency?" The dates
I gave in my initial post above (6/2004 and 1/2005)
are whats listed is as "Date of Last Activity" on my
credit report I pulled from Equifax. |
Account #1 = DOLA 6/2004
Account #2 = DOLA 1/2005 ?
| Quote: |
1 of the accounts has an entry in the
section for "Date Major Deliquency First Reported"
of 3/2006. |
This means that although your
last payment may have been 08/2004; the OC did
not Report the Delinquency of the Account to
Equifax until 3/2006. On EQ, this field is rarely
used, if ever, by the OCs.
| Quote: |
The other account doesn't have anything in
this section. Looking at the 81-month payment history
grid, I paid as agreed from 2/2000 (when the account
was opened) until it shows me 30 Days past due in
July 2004. |
For EQ, DOLA and/or DOLP
(usually the same) = 06/2004.
| Quote: |
On the other account, I paid as agreed from
2/2001 (when account shows being opened) until
October 2004 when it shows me 60 Days past
due. |
For EQ, DOLA and/or DOLP (usually
the same) = 8/2004.
| Quote: |
Thinking back, these dates sound about
accurate....I probably last made a payment in
2004 sometime. |
So, your DOLPs are
6/2004 and 8/2004 NOT 6/2004
and 1/2005. January 2005 is inaccurate.
Based upon your additional information,
the SOL expires on 6/2007 and 8/2007.
I would NOT Dispute or DV anything, until
30 days after both SOL expires.
| Quote: |
I forgot to mention that although I am
getting phone calls and mail from collection
agencies, these accounts are reporting under
"Negative Account History" on my report
(but not under "Collections") under the original
creditors still (Chase and Citibank). There are
no entries currently on my credit report for the
Collections Agencies these accounts are apparently
assigned to. |
I understand. I am pleased to
know there are no duplicates. Again, do NOT
Dispute or DV, until at least October 2007.
Be safe. On 10/20007 both SOLs will have expired.
| Quote: |
As for my 2nd issue (with the apartment
complex), it currently shows on my credit report
under the "comments" section that "customer
disputes balance due" so maybe I'll just ride it out
until next year. The lease on my car is up next
April so thats the next time I anticipate having to
obtain financing/credit. |
From what I understand, accounts marked as
"Disputed" are NOT calculated for credit scoring.
I refuse to believe it.
At any rate, this account should drop off June 2008.
You may have to wait until after June 2008
to apply for auto financing to get the most
favorable interest rate for you. Sorry! |
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ParkAvenue
Moderator
Joined: 26 Mar 2007
ParkAvenue's page
Posts: 47
Location: Florida
3872 Magic Points
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Wed Mar 28, 2007 6:08 am
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| Quote: |
| I know these 2 accounts are damaging to my credit (even though I have other currently open accounts that are in perfect standing and all other accounts in my history are perfect as well) but are they worth trying to resolve? |
Perhaps yes, But see my comments below.
| Quote: |
| This is not the best time as I am losing my job (after 8 years) as a result of company downsizing at the end of this month. |
I'm am so sorry to hear this. Hopefully, you will find a new job
real soon. There must be better job for you out there.
| Quote: |
| The good news is that I am getting a pretty decent severance package. Assuming I can land a new job in the next few months, I was debating trying to use some of my severance package money to resolve these charge off accounts by negotiating a payoff. The balances for each are around $8K so I unless they will take less than $5K for both ($2500 each), I probably can only afford to take care of 1 account. I can work on the other account down the road once I get back on my feet and get some money saved up. |
Be very, very careful with paying Charge-offs.
You do not want to re-start the SOL and/or Update
these Accounts. With the DOLPs as 6/2004 and 8/2004,
these two accounts are scheduled to Report until
6/2011 and 8/2011. Although the apartment account
will drop off 6/2008, these two negative accounts will
display.
| Quote: |
Is it worth it? How much will this help get
my credit going back in the right direction? |
Perhaps, you should ask an Expert opinion on how
to deal with these two. You may be able to negotiate
and settle with the OC and get a "Paid as Agreed" or
Delete would be nice. You need an Expert's opinion
on this before you do anything. You need to do that
immediately. There is a Debt CC Forum here. Check
it out. Acting on your own, may do more harm to
your credit than good. Good Luck. |
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