i got a letter in the mail today stated i had a credit card in which it was written off as a bad debt as of 8/21/2000 and is being reported to the credit burearus as an unpaid charge off. they claim if i settle for a x amount they will report it is "settled in full" and it will help my credit score? is this true? i mean from what i read is if you pay a charge off your seven years start over again, is that true? what do you advice? the settle amount is a good offer i think but i want to improve my credit score any suggestion. thanks in advice lora
" i mean from what i read is if you pay a charge off your seven years start over again, is that true?" -Unfortunately this is not valid info. Not sure where you read it, but it was not the federal law. -Here is the relevent section of law- FCRA 605 (c) http://www.ftc.gov/os/statutes/fcra.htm#605 "(c) Running of reporting period. (1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) 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." -The 7 year clock begins after the original date of delienquency, and is a DATE SET IN STONE. IT is not somehow restarted BY ANYTHING. "what do you advice? the settle amount is a good offer i think but i want to improve my credit score any suggestion." -If you are confortable with the amount, settle. The difference in yoor score may be minimal, BUT creditors WILL make a distinction between a "paid and unpaid charge off". Unpaid chargeoffs become a liability to the creditor. (mortgages) -It would not hurt to ask for deletion upon payment AND GET IT IN WRITING IF THEY AGREE.
It should be noted that despite the above advice, what is correct and what is commonplace are clearly two completely different dimensions in this space. If it were me, I would deny any association and accept payment only for deletion, stating that since it's not your debt, simply marking it as paid will not do. If you sweeten the deal by stating something along the lines of "I will send a certified check within three days of receiving your written assurance that this incorrect information will be deleted from the credit bureaus" (paraphrased)... Good luck!
4 years...it sounds like you need to validate, stall til after the SOL in August, and then you will be in a stronger negotiating position.
Re: Re: need help with letter -Better hurry, you only have 30 days from the initial communication from the collector to validate --------->>>>>> see below
