will paying off c/o restart clock?

Discussion in 'Credit Talk' started by ithinkican, Sep 8, 2003.

  1. ithinkican

    ithinkican Well-Known Member

    I received a settlement offer for a charge 0ff account that was for $200 when I charged off $2000...it is 2 years old, the charge off. I know to only deal w/them in writing, etc...but if I pay the $200, will the 7 year clock restart? I want to get this paid off so I can then work on getting this off my report... I tried disputing, it came back validated, etc...it lists the $2000 as a balance on my report, so will paying it off help my score at all?

    I also know to plea for deletion, but what if they don't agree? Should I pay and then go for deletion? Will paying it off be better than doing nothing? I mean, it is from late 2000, so I don't want the 7 year clock re-starting if I pay.

    Thanks for the help!
  2. gonzo

    gonzo Well-Known Member

    Yes, paying will restart the 7 year clock.
  3. shawbee

    shawbee Well-Known Member

    I am new but I think I have read in about a thousand places on the board that paying does not start the 7 years over. I would do a search on it. It supposedly starts at 180 days after you quit paying the original amount. Settling it does not extend it.
  4. LKH

    LKH Well-Known Member

    NO. Paying on a charged off account will absolutely NOT restart the 7 year clock. Negative items such as collections and chargeoffs can be reported for a maximum of 7 years.
  5. gonzo

    gonzo Well-Known Member

    I apologize. I was under the impression that paying on any account changed the DOLA. Therefore restarting the 7 years. I am sorry about that. This is my first time trying to help someone on this board and I screwed up. I thought I had this one nailed. I guess I should have done my homework before answering a question here. Again I apologize.

    Thanks LKH for clearing that up for me too.
  6. LKH

    LKH Well-Known Member

    Re: Re: will paying off c/o restart clock?

    No biggie. Keep at it.
  7. Butch

    Butch Well-Known Member

    Re: Re: will paying off c/o restart clock?

    lol That's ok Gonzo, all part of learning.

    If you make a mistake it probably won't be long before a correction is forthcoming. Thanks for the effort. Jump right in, you're doin fine.

    You're not completely wrong. Sometimes when a pmt. is made on an account the data furnisher does change the DLA. Sometimes the CRA's report from the DLA. This is all old system stuff, (pre 1996 amendment). These 2 phenomena can conspire to create a problem by starting the 7 years over again. Big trouble if you're not paying attention.

    So the fact of the matter is it does sometimes happen.

    But LKH is exactly right, in that, by law it's not supposed to.

    The law say's reporting begins as of "the date of original delinquency immediately preceding the negative action*", for accounts posted after Dec 29, 1997. The reporting period runs for 7 years from that date.

    Once an account charges off this date fixes and is not supposed to change.

    If it should occur that a TL does get "redated", now you know you can make em fix it.

    Keep up the good work.


    * Using Crofttk's definition: "The day after the first date you miss your payment, and never catch up, culminating in a negative action".


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