I have an old credit card, charged off in 2003 (SOL has run), that was placed with Cavalry Portfolio Services. The original, charged off amount was $1980, but I received a letter from Vision Financial stating that I owed $2900. Since I knew that the SOL has run out, I told them that I would pay 25% of the original amount (roughly $475), but only if they agreed, in writing, to delete the item from my credit report completely. To my surprise, they agreed! I was waiting for an emailed confirmation of these terms when I received a phone call from one of their agents. They told me that Cavalry had refused the settlement offer, but that's not true. I called Cavalry and they told me that they knew nothing of this, but that I had to deal with Vision Financial. Vision had pulled my credit after our verbal agreement and saw that my credit score has increased 180 points in the last 3 months, due to my straightening out issues from my past. In addition, I got married 5 months ago and my wife added me as an authorized user to her credit card, which drastically improved my score. They also noticed an inquiry on my credit from GMAC for a mortgage preapproval that I applied for. I guess they think that I have the resources and desire to take care of this now. I do want to get this taken care of, but I am also an unemployed recent college graduate with no source of income, and it's not right to ask my wife to pay my old debts. They also know that I settled a different debt with Cavalry for 54% just 3 months ago, but this was done with wedding gift money, which is spent! The kicker is that I need this off of my credit ASAP in order to get my Top Secret clearance for a job offer I have received. I know that this won't happen as long as this is outstanding on my credit, and it's not due to fall off until 2011. Am I caught in a standoff now? I don't know if anyone else has dealt with these guys, but I don't know what to do. Could anyone please offer some advice here? Thank you very much in advance.
If it's a paid chargeoff it shouldn't keep you from getting a security clearance. At least not as long as you don't try to hide it.
I never actually paid the debt off. It was charged off by Navy Federal Credit Union, then sold to Cavalry, then transferred to Vision. I don't dispute that I owe a debt, but the amount is incorrect and I'm afraid that if I settle it now, it might hurt my credit more than help it. I don't think I have a choice though. You don't think that this will pose a problem with my clearance, even if it's a debt that I don't deny owing?
I know nothing about the requirements for clearances, but you can always try and do a pay-for-delete offer in writing. It stands to reason that a CA will be thrilled to settle a past-SOL debt for 25%, especially if you remind them that it's past the SOL. But CAs have never been known to be reasonable, so ...
