How should a charge off be listed on a credit report? Can it be listed as "past due" with a balance that changes each month, even though the date of last activity is 1999? I have one that is queer and no one has an answer....Cap 1 doesn't call, the Collection Agency action from it is off all three reports, but the tradeline is still there. Now they are sending me letters DAILY asking me to open a new card and roll the charge off on to it. Someone help, please....this is my last neg. The balance keeps going up on my reports each month even though the account has had no activity since 1999. Is this normal????
A charge off is still a debt owed so it would be accurate for it to be reported as past due I believe.
is it reporting as a charge off? once it is "charged off" it cannot continue to accrue interest. if it isn't charged off (and there is no requirement they have to) it can accrue interest and fees for as long as your state's SOL allows.
Yes...it reports as a : PROFIT AND LOSS WRITEOFF CHARGED OFF AS BAD DEBT BALANCE $1225 MOST OWED: $1175 PAST DUE: $1175 Every 3 months it goes up by $25 on the balance. It is listed as CLOSED JAN 2000. Date of last activity Nov 1999.
So when is the due date on a charge off????????????????????????????? ????????????????????????????????? ????????????????????????? ???????????????????????????????????? ????????????????????????????????????????
Re: Re: Is a charge off "past due" or what? Helps them earn more on some of the debts. Seeing that a small percentage of the general public know anything about the SOL and would pay the inflated amount to get a mortgage, or think that it will help their credit. Also arent there some states where this debt isnt beyond the SOL?
What do you mean, "when is the due date?" A chargeoff is an accounting term. It does not mean that the debt is not owed. It just means that the delinquent creditor is unlikely to get their money.
Re: Re: Is a charge off "past due" or what? In order for something to be past due there has to be a due date. Other wise how would you know it was past due or how long it's been past due!
Re: Re: Is a charge off "past due" It's been past due since he missed his payment and never caught up. For example, if I have a payment due Oct 12 and never paid it, the due date was Oct 12. It will accrue interest, late fees, etc as long as is allowable by the state's law. As has been mentioned, just because it's been charged off doesn't mean it's not still owed. And yes, many states allow interest to be added. You ask why they would do it? It makes the balance bigger, so when they settle for a percentage they are getting more. They have lost the use of the money, interest is the payment for that. If they take him to court, they will sue for the interest as well. Otherwise, they will eventually write that amount off also.
Re: Re: Is a charge off "past due" It looks to me like the due date was probably November 1999. However, that is the DOLA. Possibly there is still part of a payment due from October, maybe even September. What does the due date matter? What matters is when it went delinquent and never again was brought current, for reporting purposes. For SOL purposes, it could be his last payment, or it could be some contact where he promised to pay or made a partial payment. But I still don't see what difference a due date makes to the question.
CHARGED OFF AS BAD DEBT BALANCE $1225 MOST OWED: $1175 ithinkican ********************** How can there be a 1225 bal. when the most owed was only 1175.? ..
Re: Re: Is a charge off "past due" Is the answer behind Door #1 or is it behind door# 2 ??? Door number one A charge off will accrue interest, late fees, etc as long as it is allowable by the state's law. Hedwig ========================= Door number two. once it is "charged off" it cannot continue to accrue interest. jenz ..
Re: Re: Is a charge off "past due" Whether other fees can be charged after CO depends on the contract and state law. In most cases no interest can be charged, but not in all cases. Section 808(1) prohibits collecting any amount unless the amount is expressly authorized by the agreement creating the debt or is permitted by law. 1. Kinds of amounts covered. For purposes of this section, "amount" includes not only the debt, but also any incidental charges, such as collection [53 Fed. Reg. 50108] charges, interest, service charges, late fees, and bad check handling charges. 2. Legality of charges. A debt collector may attempt to collect a fee or charge in addition to the debt if either (a) the charge is expressly provided for in the contract creating the debt and the charge is not prohibited by state law, or (b) the contract is silent but the charge is otherwise expressly permitted by state law. Conversely, a debt collector may not collect an additional amount if either (a) state law expressly prohibits collection of the amount or (b) the contract does not provide for collection of the amount and state law is silent. 3. Legality of fee under state law. If state law permits collection of reasonable fees, the reasonableness (and consequential legality) of these fees is determined by state law. 4. Agreement not in writing. A debt collector may establish an "agreement" without a written contract. For example, he may collect a service charge on a dishonored check based on a posted sign on the merchant's premises allowing such a charge, if he can demonstrate that the consumer knew of the charge.
Re: Re: Is a charge off "past due" If it at all helps, I am in Illinois. SOL is 5 years here, I think. Now Cap 1 is giving me the old "open a new account and roll this debt into it" spiel. This debt had gone to NCO but they contacted me once and never again, so I kind of forgot about it. They validate it, so my only course is to offer a settlement, right? I know they won't delete, but I have to pay this off because I am going for an FHA mortgage....my credit is otherwise ding-free. exp 700 eq 654 tu 695 I want to go FHA in May, so what to do, what to do????
Re: Re: Re: Is a charge off "past due" please explain how you validate an out of sol sccount? Settle what ?What's there to settle????
Re: Re: Re: Is a charge off "past due" Lbrown... wow, thanks for the sunny response. I feel so stoooopid. I know I am not 100% Mensa-wise as some people on the board, but that is why I am posting. The debt is on my reports. I have tried to dispute it,but Cap 1 validates it. It is past SOL, but I want to go FHA...unless I am wrong, and 5 mortgage brokers I consulted are wrong as well, you have to pay off charge offs to qualify for a FHA mortgage. So...I have to deal with this tradeline. That is why I put the question out there. I had 2 other charge offs that I disputed and they were deleted, but nothing I do can nudge this one. What course of action do you suggest? I am not trying to crack wise or be rude, I really just want answers and only have about 1/2 hour a day to dedicate to this debt, so I cannnot do a lot of research. Thanks for your help.
