Is it possible to remove charge-off from your credit report?

Submitted by Jason on Mon, 01/26/2009 - 16:09
Forums

A charge-off is when your creditor writes off the account as a loss. The creditor generally hands over the authority to collect this debt to a collection agency. This happens when you are over 180 days delinquent on your account. Many people think that once a debt is charged off, you are no longer required to pay the debt. However, this is not true. A charge-off doesn't mean that the debt is forgiven. You are still liable for the debt. The only difference is that now you will have to deal with a collection agency instead of the creditor.

How to remove charge-off from a credit report

When a debt is charged off, it gets listed on your credit report and will stay on your credit report for 7 years. This will negatively affect your credit score. Your future creditors and lenders will be able to see this and this can affect your ability to get new credit. So, it is better to try and remove the charge-off from your credit report. Even if you pay off the debt with the collection agency, the charge-off cannot be removed.

A charge-off can be removed only by the original creditor. The creditor is the one who reported the charge-off, and so it is he who can remove it once the debt gets paid. If you want to remove the charge-off on credit report, you will have to talk to the original creditor about the payments and request that he pulls back the account from the collection agency. However, this will depend on whether or not the account has been sold off. Also, not all creditors agree to pull back the account.

Once the creditor agrees to pull back the account you will have to let him know that you are willing to pay this debt. Then request that the creditor agree to a Pay for delete agreement (PFD) in addition to the payment. Get the payment and PFD agreement in writing. However, not all creditors agree to a PFD agreement. In that case, you will have to request him to report the account as "Paid". With time, the negative effect of the listing will decrease.

You can also try to remove the negative item by sending a Goodwill letter to the creditor once the debt has been paid off. A goodwill letter is where you request the creditor to remove the negatives as a goodwill gesture.

As a debtor you will have to check whether the SOL for the debt which has been charged off, has expired or not. If the SOL has expired, then you need not pay off the debt else you should pay it off as soon as possible by coming to a repayment agreement with the creditor who has charged off the debt. This is because, charge off does not mean that you are not required to pay off the debt. If the SOL has not expired, the creditor can sue you even for the charged off account and bring judgment against you and if there is a judgment in your credit report, your credit score may fall by over 100 points and may also lead to garnishment of your wages.

As for the charge-off removal, creditors generally agree to pay for deletion because they expect to get a portion of the debt or the entire amount outstanding from you. But since you have paid them off, they will have no incentive to get those negatives removed from your credit report. Pay for deletion agreements generally made before start paying off the debt and that too in writing because if the creditor somehow refuses to remove the negative from your report, you can send a copy of the PFD agreement to the bureaus and the bureaus would remove them from the report.

Tue, 01/27/2009 - 11:12 Permalink

Last night I tried contacting 2 of the companies, the first laughed at me when I mentioned deleting it from the credit report. She said it's against the law for a record to be deleted. She had also said the account was charged off, settled, and there was $0 balance so I didn't need to worry about it and it would fall off after the 7 year period.

The second company I talked to said they don't delete anything, but if I wanted to make payments on charged off amount, once that was paid they'd mark it charged off paid in full and that should help a few points.

The SOL here is 6 years, so roughly 4 more to go.

Finally, the third company I spoke with was trying to collect on a cc debt which had been charged off, but they put a collections mark on my credit report dated last month. I asked them if I paid would they delete this matter from my credit report. They said yes, and e-mailed me an agreement. Here is the contents:

RE: OriginalCreditor: WAMU
Original Account #: XXXXXXXXX
Current Balance: $XXXX

<MY>:
Confirming our recent conversation, our client has agreed to settle the above-captioned account for
the amount of $XXXX.
Your downpayment of $XXXX will be due in this office on or before 1/29/2009. Additional
payments, if any, are shown below:
$XXXX <Total Settlement Amount
This payment will be accepted as full satisfaction of your debt on this account. In return, we agree
to provide you with a release and satisfaction showing this matter as concluded. In addition, our
client will update your credit reports accordingly.
If I can be of further assistance, please do not hesitate to call.

Sincerely,
<HIS>
Collector

The words 'Delete' do not show. Should I take one of the draft letters and change it to reflect the amount they provided and make sure it states the matter will be deleted from the credit bureaus?

Please advise.

Thanks,
Jason

Tue, 01/27/2009 - 14:28 Permalink

I have gone through this letter. What I found is that the collection agency has not agreed to pay for deletion. They have only agreed to update the credit report as "settled" or "satisfied". However, you can request them again over phone to make remove the charge off from your report once you pay off the debt. Even if they do not agree, you should pay off the debt as the debt has already been charged off. However, you can request the creditor to change the nature of the listing to "paid as agreed" instead of "settled for less"

Wed, 01/28/2009 - 12:13 Permalink

Actually the charged off listing cannot be removed from the credit report by the collection agency. It can be removed only if the debt is still with the OC and the OC agrees to pay for deletion agreement. Moreover, even if your account is charged off, you are still responsible for the debt and the creditor can bring judgment against you to recover the debt. If there is a judgment in your credit report, you score will fall further. So, if the creditor agrees to change the nature of the charge off to "paid charge off" you can pay them off after getting the agreement in writing.
As per your Washington Mutual loan, you should take out a hard copy of the agreement they have send you and keep it in safe custody as a proof.

Wed, 01/28/2009 - 12:53 Permalink
Gullat G (not verified)

I have four charge offs in my credit and owe less than $2000 and my score is very low how can get this charge off removed.

Mon, 08/24/2009 - 03:22 Permalink
Jeremy (not verified)

My answer to you is to bluff. Here is a sample letter for you to help. They don't care about your credit report. Most collection company will not report paid account, because if gone unchecked by you the customer. They will sell the remain balance to another company or recharge you for this debt. This is know as "zombie debt". Next time before paying anything off, get it in writing.

CREDIT OR
COLLECTION
ADDRESS

Re: WHO WAS THE ORIGINAL COMPANY
Partial Account #: 368....
Amount: Paid, 0.00

To Whom It May Concern:

This letter is to inform you that this debt was disputed. Finding indicated that account was closed and paid in full. I am not sure of the account number, the account number I have is the one listed on my Experian credit report – which may not be correct.

In the spirit of compromise, I pay this account IN FULL and you agreed to immediate deletion of this account from any and all information referring to this account from the all credit reporting agencies, including but not limited to Experian, Equifax and Transunion.

There shall be no waiting period regarding the deletion of this account from the credit reporting agencies. I am give you TEN CALENDAR (10) DAYS following your receipt of this letter. Payment was as specified and if contacted by any third party, including credit-reporting agencies, [i]COLLECTION COMPANY[/i] will not acknowledge, accepted, or executed and will, in fact, deny knowledge of any such account.

Please prepare a letter on your company letterhead and have it signed by an authorized representative of [b]COLLECTION COMPANY[/b]. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state. Stating that the collection was removed as agreed and/or a letter confirming that you notified the credit reporting agencies requesting a deletion. Please also attach a copy of the Universal Data Form (UDF) you transmit to the credit reporting agencies showing the deletion request, if possible. Please postmarked no later than 15 days from your receipt of this letter.

Please address all correspondence regarding this account to:

YOUR NAME
ADDRESS

Fri, 08/28/2009 - 21:30 Permalink

Hi Gullat G

If these are your debts and you are sure then try and negotiate with your creditor and seek for a pay for delete request. Since your debts are low, there is a good chance that your creditor (s) might agree to this PFD. But, remember, whatever you do, get all agreements in writing to avoid future hassles.

Sat, 08/29/2009 - 11:33 Permalink

It is really hard to get them to do anything but to agree to a charge off and paid, they will rarely ever delete it, so your best chance is to file a dispute if the amount is not correct or if you can find anything else wrong with the account.

I paid off 4 negative accounts about two years ago that were in collection status and I can tell you that it did not help my score a bit, nor did it help me when it came to future creditors, they still question them even after I tell them that they were all paid off.

Sat, 08/29/2009 - 12:13 Permalink
nepps (not verified)

creditors should not report paid charge offs for seven years. They should shorten the time by half and only report paid charge offs for three and a half years. Then more people might pay.

Fri, 07/02/2010 - 15:00 Permalink

Does anyone have info on SOL in the state of NM? I'm unsure about the SOL laws in the state of NM...

Sat, 07/03/2010 - 01:19 Permalink
tiffanyj (not verified)

if the original creditor aggrees to the letter of deletion; what do i do about the account with the third party creditor?

Thu, 02/24/2011 - 03:39 Permalink
charlotte (not verified)

WHAT WOULD U SUG. THAT I DO THE BILL IS OVER SEVEN YEARS OLD NOW SHOULD I CONTACT D T E OR TRY WRITING THE CREDIT COM. EX .TE. AND EQ

Sun, 03/27/2011 - 18:32 Permalink
newhorizons (not verified)

Carol, here is a sample letter I wrote using your template, modifying it a bit for my circumstances. I also changed some words since I didn't want the tone to sound as harsh. Additionally, do you think they will budge since the amount is so small, i.e. not worth their time? Can you kindly provide me with input? Thanks!

This letter is an offer to amicably settle the above account. I never received notice of the change in policy regarding the addition of inactivity fees for checking accounts, or the resulting notice of collections that resulted from said fees.

I am willing to pay this account IN FULL if you agree to delete the account from the credit reporting agencies (namely Equifax, TransUnion and Experian) that you have reported to, and validated this account. My sole purpose is to get this item removed from my file.

If you accept the terms of this agreement, the amount of $41.40 will be sent to your collection agency provided there is complete deletion of any reference to the debt from my file on all the credit bureaus that you have reported to, and the debt is validated. As the full amount demanded will be paid back, there should not be any waiting period to delete this item from the reporting bureaus.

Your agency should delete all information regarding the account from my credit files within 10 business days from the receipt of the payment, as mentioned in this agreement. The terms of this agreement will not be discussed with anyone but the original creditor. No third party will be informed if contacted and no acknowledgment of the debt, any kind of payment, or settlement will be discussed if I am contacted by the Reporting Agencies.

Following the acceptance of the agreement, please prepare a letter on your company letter head unambiguously agreeing to the aforementioned terms and conditions and have it signed by your agency's authorized signatory. This letter will imply a legal contract, enforceable under my state law.

If I do not receive an approval letter within 15 days of your receipt of this letter, I will withdraw this offer.

Please communicate regarding this account via the fax number mentioned below. My wife and I are currently overseas on US government service, making traditional mail less feasible. Thank you.

Fri, 05/06/2011 - 00:42 Permalink

Hi..the amount of the 'charge off' is $42.00? Is this what I'm understanding? Ya know..I don't know if it's really "worth your time". You would probably spend more than that sending letters back and forth (certified ones), etc. What company would 'charge off' such a little amount?

Mon, 05/16/2011 - 01:11 Permalink
laura guerra (not verified)

I am late on my car payments for 5 months now, I tried to modify the loan, it hasn't been possible, they want me to return the car, it would be charge off at the end of the month....should I return it? or they would negotiate after charge off?? they are looking to repo...what's the next step??

Thu, 05/26/2011 - 20:39 Permalink
Tiffany Joyce (not verified)

The original creditor is refusing to report the charge off as paid. They said the could send us a letter showing it paid adn we could petition the credit bureau to change the status. Is this possible? Can the credit bureau do that?

Mon, 06/06/2011 - 15:48 Permalink
TimKing (not verified)

My wife and I settled all of our debts through a debt consolidation program. The credit bureaus are reporting the accounts as charge off but actually all the debts were agreed settlements negotiated by the debt consolidation company. Can these be disputed as settlements and not be considered charge offs?

Sat, 07/02/2011 - 03:32 Permalink
AF (not verified)

Is there a way to remove the chargeoff if I already paid the balance in full through the collection agency it was sold off to? I feel like I may have screwed myself by paying the collection agency. Thank you.

Fri, 07/22/2011 - 14:16 Permalink
ifixem75 (not verified)

i had a judgement in 2005, paid it in 2009. as of 8/12/2011 the company (first resolution investment corp) will not mark it as paid and the credit beareu did their investigation and it came back as valid. i have all the proof it is paid and they WILL NOT do anything about it. what do i do?

Sat, 08/13/2011 - 04:13 Permalink
joanne (not verified)

My credit card company was notified as soon as i received my monthly statement October 2008 that the charges on my statement i never made the charges on the bill same happened in November and December of 2008 each time i would call them and let them know i never made these charges or authorized this company to charge, each time they said they woukld take care of it then in January, i closed the account the balance of over $29,000 of charges on my aqccount which i never made or released my account information to this company, i disputef these charges with the credit card company, as identity theft and fraud have made a police report on this matter. The credit card company turned this in to the credit agencies as a (CHARHE OFF)
i notified all three credit bureaus as a dispute against this company, I received a letter from the credet card company stating (according to documented company records, i released my account number to this service establishment, and i give them permission to charge on my account, no i never did, so the credit company is now swueing me. I have requested copies of the (documented company record showing i made these charges and it has been over year i still have not received them from the credit card company there fraud department. The statement in there letter said please, be advised our previous decision stands. now i get served with law sue documents monday. I can'nt afford to hire an attorney i live on a fixed income i am 68 years old. can you please give me some advise. thank you

Mon, 08/29/2011 - 21:15 Permalink
Tweety (not verified)

I have a debt that has been charged off and the creditor no longer wants to collect on it and I filed the 1099c. The account is reporting the debt as late and it have been charged off since 2008

Sun, 10/02/2011 - 18:33 Permalink
rosemary (not verified)

canton Credit refused to remove judgement off my credit report because it was paided off.Call them to have them to have it removed off credit report which they are violate my rights and I can't even get a bank loan because of judgement not removed

Tue, 10/25/2011 - 21:45 Permalink
kiheidt77 (not verified)

Thanks for helping with this matter!
I recently paid off all old negative accounts on CR. I wasnt sure how to go about asking them to delete, so I never mentioned it. Now that all accounts are paid is there a snowball in hell chance i can contact them again and see what they would consider now? or am I on the 7 year plan? note* all debts were ranging from $15 - $870 (darn gas company) so none were extreme cases of thousands of dollars. I dont know my chances but just thought you might

patiently, Derek

Tue, 01/31/2012 - 11:17 Permalink
Tami (not verified)

Hi Carol

we have been paying on this particular credit card for over 20 months now to a debt collection agency and this January the credit card company has issued a "charge off" and a past due amnount of $379 on our credit report, can they do this even though the monthly payments are automatically deducted from our account every month? I could understand if we haven't ever made any payments but we have been current since June 2010. Please help!!!!

Wed, 02/01/2012 - 18:30 Permalink
Luvbkjt (not verified)

If you have an account that says: 'transferred, closed, and amount written off', and you make arrangements with the the new creditor to make monthly payments, how does that reflect on your credit history?

Fri, 03/02/2012 - 03:52 Permalink
Roxanne Harvey (not verified)

I recently had an account charged off exactly 150 days late. I recived no notifications that the account would being reported as a "charged-off". Should I have recieved some type of mail or notification that the account would be charged off prior to the creditor reporting this to the credit bureaus and if so, who should I beging disputing this with?

Tue, 06/12/2012 - 18:18 Permalink
a henry (not verified)

On june 30 2012 they cgarged my account off because i didnt pay in nay or june but prior to that i was oaying montbly trying,to catch if fron being delinquent pilrior to this,if i make a settlement with them will tbey remive the charge off from my credit report

Thu, 07/19/2012 - 16:08 Permalink
wesley weysham (not verified)

I got a settlement offer from a collection agency for an old debt. They offered to consider the account paid in full if I agreed to make a payment by a deadline. I made the payment with a cashier's check by the deadline but the account was marked charged off instead of paid in full as they promised. Since they sent me the offer in writing and I accepted can I make them change the status on my credit report to paid in full.

Tue, 04/02/2013 - 22:36 Permalink
Gerry Whitfield (not verified)

Yes, you can ask them to change the account status to "Paid in Full".

Wed, 04/03/2013 - 11:57 Permalink
isabel marant basket (not verified)

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Sat, 11/30/2013 - 11:33 Permalink
Ashley (not verified)

I have a deliquent charge off but have a settlement offer and want to pay in full through the collection agency, but if I do will it remove the lien from my car title so that I can register again?

Thu, 03/20/2014 - 21:54 Permalink
joy (not verified)

credit card co paid by trustee they are reporting this on report as a charge off

Fri, 06/13/2014 - 02:44 Permalink
crorkz (not verified)

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Tue, 08/05/2014 - 21:11 Permalink
Anonymous (not verified)

Hi Carol. I need advise on a charge off account that has reached it statue of limitation. The account was charged off in 2010 and suddenly it appeared late every month since May. I called the creditor today in an attempt to pay however I was informed they can not collect any funds from me as the account has reached it statue of limitation. They provided me with an address where. Can send the funds and instructed that I need to state that it voluntary. I would like the charge off removed and I don't want tWhat would you

Sat, 08/15/2015 - 01:35 Permalink
george toma (not verified)

I paid charge off and collection on my credit report but I don't have any agreements to remove this accounts . can I still remove this charge off if I hire credit repair company

Mon, 09/05/2016 - 18:57 Permalink
Dort Burton (not verified)

what type of letter can I write to creditor to remove closed/charged off accounts? some are over 6 years old. I live in NYS.

Thu, 09/29/2016 - 19:50 Permalink
Kelvin Moore (not verified)

I just had my BK dismissed I reached out to my Auto Lender and they told me it had been charged off. I asked was there an outstanding balance and they said yes $7800.00. They said I could resume making payments however, they may still come after the car.

Tue, 04/11/2017 - 16:05 Permalink
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Tue, 07/17/2018 - 00:48 Permalink
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Here's my story, My wife and I had two state tax liens in Michigan that were listed as Joint Responsibility. Since the new law requiring specific information is associated with the tax lien was enacted, they were removed from my wife’s report but they will not remove them from mine. I didn't understand why they removed them from my wife’s report but not mine, so i decided it was best to go online in search of a reliable hacker to come to my rescue and just after a few surfing i came across Trust hacker and emailed him at gmorrison741 @ g m a i l . c o m". I told him about withdrawing my tax liens from my credit report and he was really experienced and understanding. and as he assured me the tax liens were completely gone after running his hack and my credit scores being raised to golden scores.. I couldn't have imagined my life so good so fast.

Tue, 07/17/2018 - 00:56 Permalink
Melissa Willtord (not verified)

Here's my story, My wife and I had two state tax liens in Michigan that were listed as Joint Responsibility. Since the new law requiring specific information is associated with the tax lien was enacted, they were removed from my wife’s report but they will not remove them from mine. I didn't understand why they removed them from my wife’s report but not mine, so i decided it was best to go online in search of a reliable hacker to come to my rescue and just after a few surfing i came across Trust hacker and emailed him at gmorrison741 @ g m a i l . c o m". I told him about withdrawing my tax liens from my credit report and he was really experienced and understanding. and as he assured me the tax liens were completely gone after running his hack and my credit scores being raised to golden scores.. I couldn't have imagined my life so good so fast.

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Sat, 11/03/2018 - 22:27 Permalink
Windy (not verified)

If the car was charged off the picked up on that lost. Now I come and make a payment arrangement...now the get pay twice from the charge off and from me ? How is that ? Can it be possible that the bank would take the lien off being it was charged 63 years ago? Ty

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