Charged off acct's..

Discussion in 'Credit Talk' started by dinob12, May 6, 2001.

  1. dinob12

    dinob12 Well-Known Member

    Quick question ? I had a hechts account and a Sears account charged off about 3 years ago...I want to pay those off but i would like to know what the chances are of them reopening the account ? Has anyone had a retail credit account charged off and then reopened once the account had been satisfied ?
  2. bbauer

    bbauer Banned

    It's highly unlikely that they would re-open unless by prior written agreement to do so.

    Probably something to do with the old saw about
    Once burned shame on you
    Twice burned, shame on me

    Once you start paying, they will then start re-aging your account and you will have the stone around your neck 7 years after you make the last payment. Of course, they will also keep on adding interest and carrying charges so that you will keep on paying them forever, thusly extending your 7 year period forever too.

    I think that if you want to pay off the debt, you get all these things in writing before you ever start making payments. If you can't get it in writing, better just to take them off your credit report and forget it.
  3. Mike2

    Mike2 Well-Known Member

    They can't re-age the account, can they Bill? It's my understanding that a revision of the credit laws in 97 has made this practice illegal. If I'm wrong about this, then there's been a WHOLE lot of misinformation flying around the board, and other credit sites I've observed.
  4. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    Consider The Source?

    Youâ??ll be pleased to know, youâ??re not the one wrong! FDCPA was amended in 1996 to reflect changes to occur when the new Act was engaged, September 30, 1997. Accordingly 15 USC 1681c(c), reporting limits, were changed to follow the 455 day rule.

    Unless a debt was reported on or before December 30, 1998, it cannot be reinserted or updated upon payment and thus extend reporting time. Simply put, the seven (7) year reporting rule would apply. Correspondingly for your benefit and so that my credibility isnâ??t questioned by the less informed, bombastics, among us. What follows is the full cite of 15 USC 1681c(c), with the amended language added.

    • Running of reporting period.
      (1) In general. The 7-year period referred to in paragraphs (4) and (5) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.
      (2) Effective date. Paragraph (1) shall apply only to items of information added to the file of a consumer on or after the date that is 455 days after the date of enactment of the Consumer Credit Reporting Reform Act of 1996.

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