Charge OFF Settlement/Verification

Hello,

I currently have a chargeoff that is killing my FICO score. THe chargeoff will become an issue when I start shopping for a mortgage in the near future. (Feb. 2004). Back in June, I disputed the debt as "not mine" with all three CRAs and it came back verified. A CA (NCO) was collecting the debt and also reporting it to the CRA's, however, I was able to get that deleted on all three CRAs by sending a validation request and then disputing the account as not mine. Now it is the OC that reports the debt. I do not think the debt has been sold, however, I do not know how to find this information out. The debt is reported as follows:

Credit Card Company

Status:

Account charged off/Past due 180 days. $1,265 written off. $968 past due as of 9-2003.

Status Details:

This item was verified on 7-2003 and remained unchanged.

Date Opened:
08/1991
Type:
Revolving

Reported Since:
04/1994
Terms:
NA

Date of Status:
03/2001
Monthly Payment:
$0

Last Reported:
09/2003
Responsibility:
Individual


Credit Limit/Original Amount:
$500

High Balance:
$1,265

Recent Balance:
$1,265 as of 09/2003

Recent Payment:
$60

Account History:
Charge Off as of 2-2003 to 9-2003, 3-2001
180 days as of 2-2001, 10-2000, 9-2000, 3-2001
150 days as of 1-2001, 8-2000
120 days as of 12-2000, 7-2000
90 days as of 11-2000, 6-2000
60 days as of 5-2000
30 days as of 4-2000, 2-1999

I live in the state of Georgia and the SOL is 4 years.

I have read hundreds of posts on requesting verification with the OC as well as offering a settlement for deletion. I need for this account to go away soon. I will pay whatever to get the account deleted, however, I do not want it to reflect a paid or settle charge off with $0.00 balance. What would you recommend? I have read that a verification letter that also offers a settlement with a restrictive endorsement might work. I have assembled the following letter from a number of templates found on the internet. Any critiques, pointers, advice, or help would GREATLY be APPRECIATED.


Company
Address1
Address2
City, State Zip

Date

RE: Account XXXXX-XXXX-XXXXX

Dear Sir/Madame:

I have recently received a copy of my credit report. My credit report has an account with an outstanding balance listed from your company as a revolving credit account. I immediately called your company and provided your representative with my social security number and obtained the above-referenced account number to use in any correspondence.

I am writing to dispute the account referenced above. I have disputed this account information as inaccurate with the credit bureaus , and you have been able to verify this debt. How is this possible? I feel that this is not my account.

I am writing this letter to you in an effort to get this item removed. Please delete your information from my credit reports. I have never charged revolving credit with your company. If someone has charged monies to an account in my name, please close it immediately before further harm is done.

I am requesting that you notify all of the credit bureaus to delete this account until this matter is resolved. This is required by the Fair Credit Reporting Act.

Please be advised that I am not requesting a verification that you have my mailing address, I am requesting â??validation;â? that is, competent evidence that I have some contractual obligation to pay you.

In the event that you can not verify the item pursuant to the FCRA, and you continue to list the disputed item on my credit report I will find it necessary to sue you for actual defamation damages and declaratory relief under the FCRA. According to this regulation, I may sue you in any qualified state or federal court, including small claims court in my area. You have severely limited my ability to get a job or insurance.

In light of the recent court case opinion No. 00-15946 CV-99-00290-D.C. by the US Court of Appeals 9th Circuit, Nelson Vs. Chase Manhattan, the court ruled that the creditor has the responsibility to investigate and make sure that correct information is being reported to the bureaus, and that the consumer has a right to sue under the FCRA, should his or her rights be violated.

While I prefer not to litigate, I will use the courts as needed to enforce my rights under the FCRA.

Furthermore, this letter serves as notice to you that if you feel I owe you money on a revolving credit account, that this is a request for verification of such claim. Due to possible inaccuracies in these CRA reports, I must demand that the verification I hereby lawfully request be in the form of a notarized statement by a person with original knowlege of the debt as it was constituted and who can testify that the debt was incurred legally, was not subsequently desputed as a result of returned, faulty or recalled consumer products, was not utilized as a profit-loss tax deduction during the period it may have been payable, and was not claimed as a loss with any insuring entity during the epriod it may have been payable. Please be advised that I am not requesting verification that you have my mailing address; rather, I am requestiong competent evidence that I have some contractual obligation sans consumer protection encumbrance which incurred the original claims associated with this tradeline.

Please attach copies of:

Agreement that bears the signature of the alleged debtor wherin he agreed to pay the creditor.

Any insurance claims been made by any creditor regarding this account.

Any judgements been obtained by any creditor regarding this account.

Detailed itemized account statements that show all transactions and charges associated with this account.


This is a written dispute of the account per the Fair Credit Reporting Act and the Fair Credit Billing Act. Please be aware that I am exercising all of my rights per these laws and all other applicable laws protecting me. Your failure to satisfy this request within the requirements of the Fair Credit Reporting Act and the Fair Credit Billing Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees.

While I have yet to have the debt verified to me as legitimate through my right of the mini Miranda, I can however save us both some effort & time by "Settling the debt out".

Below is my offer. It is not a renewed promise to pay nor does it constitute any agreement unless you sign and return it. Note, I have not agreed yet that this debt is mine and have the option to seek further proof of this debt.

Suffice to say, you hold the right to report debts to the credit bureaus and you can change that listing at any time as the source reporting the debt.

Paying this unverified debt to you means little to me if we cannot mutually agree that you will report the debt as mentioned below.

While I realize that your purpose is to collect debts, I am also aware of what a paid collection would represent for me, which is not favorable. That being said, I have concurred through the bureaus that you have the absolute right to report debts or not report it at all.


My goal is to arrange a term acceptable to both us since this debt is questionable.

I will pay your company the amount of $650.00 as payment in full for the full satisfaction of this account. Upon receipt of the above payment, your company has agreed to change the entry on my credit reports to "Paid AS AGREED". You further agree to remove all previous notation of delinquency.

If you concur with these terms please acknowledge with your signature and return it to me. You agree the terms herein are confidential and you have the authority to make such decisions. No payment will be made without written confirmation.

Upon receipt of this signed acknowledgment, I will immediately mail you certified funds with a restrictive endorsement in the amount of $650.00. This is not a renewed promise to pay but rather a
restricted offer only. If no terms can be met, no new arrangements will be made and the offer will be void.

I look forward to a timely and amicable resolution to this matter.

Sincerely,


Your Name
Your Address
City, State Zip

 

Do you feel that I would have a better chance of settling for deletion if I offer the full amount owed on the account? I need to get the tradeline deleted ASAP.

Thanks a million for your reply