Charge Off - Paid. Do letters still work in this situation?

Discussion in 'Credit Talk' started by PsychRN, Jul 7, 2010.

  1. PsychRN

    PsychRN Member

    So ok, this is a bit confusing.

    I had a credit card and ****ed up but then later paid my balance in full after the fact. This was 3 years and 2 months ago.

    However, I have a credit card from the SAME company with the same limit on it. They sent me this card AFTER they closed my account and reported it as a charge off.

    I do remember that when I had applied for this credit card they had accidentally sent me TWO cards - with two different account numbers but the same balance. I called them and told them it was their mistake and I never used the one. I got into trouble with the one I was using and as I said I paid it in full and it is listed as a charge off.

    Now, 3 years later I have been using the other account (since they sent it to me lol) and I have made all my payments on time. Since I am still a customer...what is the best way to go about having the charge off removed from my credit report? Should I just start with a dispute to the credit agencies and see if it is verified?

    I have read about the Goodwill letter and the nutcase letter.

    I'm not sure which one to use in this case.

    Since I am still a customer to this creditor I imagine that I would send a goodwill letter. If that doesn't work should I send a nutcase letter?

    Also, curious if these letters still work since it has been several years since they have been posted, I wonder if these creditors stopped paying attention to them or not.

    Oh, and does anyone know how long they even keep records of charge offs - paid if I do just first dispute with the credit agencies?

    Thanks!
     
  2. wolverene

    wolverene Member

    I would try to dispute it with the credit reporting agencies first. You can send all three of them letters (certified mail, of course) and advise them that this is a "duplicate account." I would start there first and let us know what happens. If that doesn't work, we'll go from there.
     
  3. wolverene

    wolverene Member

    Oh, and as far as how long they keep charge-off records; I'm not sure of the length of time (probably 7 years) but I do know that once it's charged off, it's usually sold to a collection agency and the details of the account (transaction history, etc.) are sent to the collection agency and the original creditor no longer has them. So, normally you can call the creditor and ask for the records on the account. Naturally, they won't have them anymore and will tell you that, so you can attempt to have that account deleted altogether with the credit bureaus, citing the fact that the original creditor doesn't have records on the account and therefore it cannot legally show up on your report.
     
  4. PsychRN

    PsychRN Member

    I have sent them letters. Waiting to hear from TU and Equifax.

    Experian online report states "it has been updated". It says on the report that it was verified and updated on June 2010.

    I paid the account in full. On status it says: Paid,Closed. $0 written off.

    So since I suppose it was in fact two separate accounts, one remained open and I still use that one. The account that was closed and charged off I did pay in full. I really thought it was going to be taken off my credit report since I paid it in full.

    Anyway, where should I go from here?

    Since I still have an account with them, should I send a good will letter?

    Or should I contact the creditor first and ask for all their records including the settlement records, etc. If they don't have them then I guess they would need to remove it off of my credit report, correct?

    At what point would I send the nutcase letter do you think.


    I just am not sure if I would be able to try the goodwill letter and then later use the nutcase letter....and would I ever send the estoppel letter?


    Sheesh, I am such a noob. Thanks in advance for any suggestions or a point me in the right direction in this forum. Thanks!
     
  5. Hedwig

    Hedwig Well-Known Member

    Absolutely not true in most cases. Even when a debt is sold, the original creditor will retain the records. Sometimes, especially in merger situations, the information may get lost. Or it might not be readily accessible by the customer service rep you talk to. But trust that it's there somewhere.

    If you don't believe me, try applying for an AMEX card when you had a charged-off account 25 years ago. They know. Citi, Chase and Cap One also have very long memories.
     
  6. Blondie82

    Blondie82 New Member

    Wolverene was actually mostly correct. When debt accounts are sold to a new agency a chain of title is created listing the agency name(s) and date sold. Debt buyers pay more money for debt that has the available docs supporting the validity of the debt to go with it. This is called media. This also means that the original creditor no longer has possession of these documents. It is actually illegal for an agency to contact the original lender on the chain of title unless they purchased the debt directly from them. As debt is frequently sold to numerous agencies, the availability of media decreases, (usually due to human error) leaving agencies unable to verify the debt. This also increases the likelyhood of duplicate entries and inaccurate dates on your credit report. You should definitely dispute the debt! You wouldn't dispute it with the original lender though. Just the agency currently in possession of the debt.

    Negative info drops off after 7-10 years by the way. Each state has different laws regarding the statute of limitations however. The debt can still be collected, just not reported. It's called junk debt or out of stat debt.
     
  7. billbauer

    billbauer Well-Known Member

    Hmmm. That's a new one on me. What law says that?
     
  8. Hedwig

    Hedwig Well-Known Member

    None that I know of, since IRS regs would require the original creditor to maintain records, and the FDCPA requires a CA to obtain the information from the OC.

    Even though the OC might provide COPIES of any documentation, they would certainly retain records. I can see them telling the IRS that they don't have any records to back up any tax forms because they sent them to someone they sold the debt to.
     

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