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I have a credit card entry on my credit report in the amount of $1640, marked as "charged off" on July 2010. It was with a collection agency for a while, they were on my credit reports as well along with sending me requests for payment in full. However, I'm doing a debt snowball, and I ignored them until about a month ago until their turn came.

They stopped sending me notices in Jan, 2011, but I still sent them a pay for delete letter to see if they were alive. They did not respond and I notice they are no longer listed on my credit reports. Now only the original creditor is listed.

Should I send the original creditor a pay for delete request? If so, for how much( 50%, 75%, etc )?

I think that I should hurry before they sell it to another collection agency, that way I only have one entry to get off of my report instead of two.

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Is the chargeoff valid or can the entire entry be attacked via fcra fcba? Might be better to sue and get a deletion for dismissal rather than pay anything

It's valid. I was in bad financial shape and made some repayment deals with them that I failed to stick to. Yes, they did tack on a bunch of fees and had high interest rate, but I can't say that I don't own them anything. My credit limit was about $1100 before charge off, so I definitely don't want to pay more than that.

How would it be attacked? Do you have a link to the procedure?

how long has the debt (with original creditor) been on the report? when was the last time you interacted with them? the debt will age off of the report eventually.

Creditboards is the place where they can walk you through how to attack it.

It's not a question of "did you owe them anything " - even if you did owe simething if they did anything wrong you may have basis for a claim...and they may decide it's in their best interests to settle and delete the item rather than go to court to defend their fees

I'd love to go to creditboards, but they block me as I'm coming from a foreign(Japan) IP address. I can get cached Creditboards pages from Google searches, but that is the limit until I return to the USA.

fortezza said:   I'd love to go to creditboards, but they block me as I'm coming from a foreign(Japan) IP address. I can get cached Creditboards pages from Google searches, but that is the limit until I return to the USA.

How about a proxy server?

Never mind, creditboards, we can start another thread for that.

I got a letter from them ( Applied Bank ) today . My pay for delete letter was obviously forwarded to them by the now-defunct collector. They made a counter-offer of $1300 for a "settled in full" and removal of any derogatory data enter on my CR in the last 24 months. Their timeline is pretty short, and I'm thinking of counter-offering $1000 and stating that "pay for delete" is non-negotiable.

What do you guys think?

Is "settled in full" going to be reported on your credit report ? If so, thats still a negative item.

What's your score and how many 'baddies' do you have on your credit report? This will determine the course of action.

Say, you've already had a few neg items on your report, one more neg item won't really affect the score that much.

Here's what you need to do:

1) Determine the statue of limitation in your state. What was the last time you made the payment to the creditor? Is it w/in the statute of limitation? If so, then proceed to step 2.
2) When you see the word "settled" on any notation, you shouldn't really agree. I'd go with 'paid in full' or paid for deletion.
3) You have the money, which means you have the power. They want your money. Do you really want to pay 1300 just to not get what you want? If it's negative, you might as well offer 20% and go up to 35%. If they agree to delete or put a positive mark on your account, then you can determine how much that is worth to you.

This seems like it's about to be charged off or written off as bad debt(usually 6 months after last payment). They get a small tax credit, which I believe to be around 10-15 percent. Not always, but most likely they will accept the 20-35% offer. This is why the date they give you is so limited.

Chat them up and see what you can get out of them. Always get the agreement in writing and make payment w/ a cashier's check.

Good luck and let us know how it goes.

1)The account went to collections on July 2010, a collection agency contacted first on Oct 2010 and last on Jan 2011. I sent an pay for delete off to the CA, but apparently they dropped off of the account and forwarded my offer to the Original Creditor. The OC is on my Credit Report and the CA disappeared with no action on my part.
2)I agree, though the temptation to settle and get on with my life is strong.
3) I almost have the money, 2 more days until my paycheck is deposited.

I think I'll write them a counter-counter offer letter. There is no way I can pay in their time frame anyway. They want a response in 4 days, and it will take a week to wire some of the money to my checking account from an external HYSA , and there is also the rest of the money to pay them coming in 2 days as part of my paycheck.

Calling them is difficult as I'm in Asia. When I'm awake, they're closed, and when I'm asleep or at work(personal calls not permitted due to electronic security measures) they are open.

As far as my credit report, it has these negatives:
*Lates on student loans from 2+ years ago,
*A tuition account in collections that I'm paying on monthly
*Credit card charge-off(the one I'm working on now)

Off the report I'm paying back taxes to the IRS. After that and the collection accounts are settled, I'll be saving up for car/house/apartment that I'll need to buy when I return to the United States next Summer. My student loans will either stay in forbearance or I'll start paying off just the interest until I get settled(food/transportaton/shelter/job) in the US.

I'll keep you guys up to date. This is the first time I'm negotiating instead of just paying to settle. It's pretty exciting to fight back and not just do what I'm told.

One trick that always works with collectors is to include a non-disclosure agreement with the settlement contract. Make sure the NDA is worded in a way that prevents them from verifying the account with a credit reporting agency. This is usually easy because collectors (especially junk debt buyers) love NDAs. YMMV if you try it with a creditor.

Is the student loan w/ a private lender? If so, you can just stop paying and negotiate a deal. It's in collection and your credit is trashed anyway.

As for the late on student loans, I'd write a letter to the credit report agencies (or go online) and tell them that you weren't late (basically disputing the report). They will have to research and provide you w/ verification. If the Original Creditor cannot or will not provide you with adequate verification, by law, the CRA will have to delete the negatives.

On the other note, how can they charge off the debt and still own the debt? Maybe someone can help me understand this. I thought when they charge off, they'd take a tax deduction and sell the debt for a loss. I guess they don't have to sell the debt. It's a bit weird to me.

OK. Next course of action:

Write the letter to the company that you own the debt and ask them to VERIFY the debt (you cannot validate the debt with the original creditor). You gotta make sure that you actually own the debt, right? And you gotta make sure the interest and fees are legit, right?




fortezza said:   1)

As far as my credit report, it has these negatives:
*Lates on student loans from 2+ years ago,
*A tuition account in collections that I'm paying on monthly
*Credit card charge-off(the one I'm working on now)

Off the report I'm paying back taxes to the IRS. After that and the collection accounts are settled, I'll be saving up for car/house/apartment that I'll need to buy when I return to the United States next Summer. My student loans will either stay in forbearance or I'll start paying off just the interest until I get settled(food/transportaton/shelter/job) in the US.

cr3s said:   
On the other note, how can they charge off the debt and still own the debt? Maybe someone can help me understand this. I thought when they charge off, they'd take a tax deduction and sell the debt for a loss. I guess they don't have to sell the debt. It's a bit weird to me.


As the subject says, the collection agency is out of the picture, and I am dealing directly with the original creditor. The letter I got a few days ago has the letter head, name, and address of the original creditor.

Therefore, I cannot perform debt validation. However, I can request Pay for Delete from them. I was considering disputing the entry on my credit report and then serving a form 623(Investigation request), but I've decided to see how much I can bargain them down to for a PFD.

The student loans are with the Dept of Education, and they are more are less on the backburner. I only have limited free time to work on fixing my credit report, so I can only take on one company at a time.

I didn't say debt validation. I said debt verification.

What is debt verification?



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