Help - will paying charge-off re-age trade line?

[Twinkle]

I have a cc that was charged off and is showing a balance of $1039.00 on my most recent report. I'm trying to negotiate paying with deletion of negative information but if the worst comes to the worst and they won't update it and I pay anyway (to get it of my conscience) will it be re-aged and stay on my report for another 7 years?? (It's due to drop off in 2006 and the SOL is 2006 also).

Your thoughts would be appreciated.

Thanks!

[Swede]

<blockquote>Originally posted by Twinkle

I have a cc that was charged off and is showing a balance of $1039.00 on my most recent report. I'm trying to negotiate paying with deletion of negative information but if the worst comes to the worst and they won't update it and I pay anyway (to get it of my conscience) will it be re-aged and stay on my report for another 7 years?? (It's due to drop off in 2006 and the SOL is 2006 also).

</blockquote>

No, paying a charged off or collections account will not re-age it, it always goes by the initial missed payment date that led to the delinquency of the account. But why are you paying it? A paid charge off is just as bad as an unpaid one, you should instead try to have it removed by disputes and letters to the OC.

[Twinkle]

Thanks for such a speedy response!

This may sound a little naive but I owe that money and I feel really terrible that I never paid it. I've read the boards and know that i should dispute with the CRA's (which I don't really have a problem with) but what can I tell the OC in letters that wouldn't be an out and out lie? Am I being way too Pollyanna here????

[rcsrodriguez]

I kind of agree with you Twinkle and am in a similar situation (though my 3 cc's are substantially higher than yours). I have charge offs and would like to negotiate a settlement as I feel I *did* run up at least the majority of that card and am responsible for paying my debt. But it is disconcerting that doing the "right" thing does not reflect more positively on your credit report!

Swede, if paying off a charge off is not the best thing to do, on what grounds do you dispute the charges? I have one that is close to $9k. I don't think Citibank is simply going to forgive and forget or allow me to walk away without a fight. LOL

[Swede]

<blockquote>Originally posted by Twinkle

This may sound a little naive but I owe that money and I feel really terrible that I never paid it. I've read the boards and know that i should dispute with the CRA's (which I don't really have a problem with) but what can I tell the OC in letters that wouldn't be an out and out lie? Am I being way too Pollyanna here????

</blockquote>

Not naive at all but if credit repair is your goal, starting out by paying something is not the right path. You loose a lot of leverage once you've paid and should they refuse to remove, which they normally will do, you'll be stuck with something equally as bad and got nothing out of the process. I would start out by disputing as "not mine" with all three CRA's and hope it falls off, if not, come back and we'll talk about next steps but the disputes will take 30 days.

[Swede]

<blockquote>Originally posted by rcsrodriguez

Swede, if paying off a charge off is not the best thing to do, on what grounds do you dispute the charges? I have one that is close to $9k. I don't think Citibank is simply going to forgive and forget or allow me to walk away without a fight. LOL

</blockquote>

You always start out by "not mine" then move on to other things within the TL such as amount, date opened, type of account etc. You do this because you need to cover yourself should the CRA verify the dispute and you need more chances to dispute. They do have a right to reject your dispute by labeling it as frivolous and by disputing different things within the TL, you're avoiding that problem.

If the furnisher doesn't respond within 30 days, it will be deleted, Citibank might not get to your dispute in time.......................

[BrassFan]

<blockquote>Originally posted by Swede

Not naive at all but if credit repair is your goal, starting out by paying something is not the right path. </blockquote>

I'd have to disagree with you, Swede. I think that if you have the ability to pay, then your first step should be to try to work out an arrangement that has you pay the debt in return for your CR being updated.

But, that's just my opinion. I'm a firm believer in trying to pay what you legitimately owe.

[Swede]

<blockquote>Originally posted by BrassFan

I'd have to disagree with you, Swede. I think that if you have the ability to pay, then your first step should be to try to work out an arrangement that has you pay the debt in return for your CR being updated.

But, that's just my opinion. I'm a firm believer in trying to pay what you legitimately owe.

</blockquote>

Disagreeing is fine, but I'm talking about credit repair and how to best go about removing derogatory information from your files. As I'm sure you are aware, most furnishers WILL NOT remove information in exchange of payment and will state that it is illegal for them to do so. So after you've sent in letters saying you do in fact owe the debt and you will pay X amount for deletion and they refuse, then how do you get it off........??

[kb9tbq]

Ok, to add another side, I see both points, yes - it hurts the scores but a person has an obligation or at least a feeling of wanting to make things right again.

You don't want to get ripped off either on what is allowable added on fees and such.

So what I woul do would be to follow up on the debt validation, have them send you the payment history and be sure to account for all the charges. If you see something wrong, take the matter up with them. But be sure if you want to settle or pay in full that you have the billing accounted for.

Try negotiating by all means for the best reporting possible, if it is the OC, see if they will update positive, or if the CA see if you can't get the tradeline deleted. Might cost a bit more, but you are accomplishing two things at once, paying on a debt owed and fixing credit at the same time.

If you can't get them to negotiate, then you are stuck with decision as to paying when you know they will only update to show paid collection. You can still dispute these with the CRAs all you want, just that sometimes these are harder to remove after the fact.

Also remember that if you settle saving more then $600 on the bill, you might just be receiving them tax forms claiming additional income.

Of course the most important thing is that SOL / and the 7 year reporting and where you stand on both matters - how this works with you or against you.

[timbercreektech]

So I agree with paying what is owed. However, some debts actually double

because of over the limit fees, late payments, etc... So a 1039 debt can come

up to 2000. These are sometimes debts that are sold for pennies on the dollar.

So what is more ethical:

1. Pay debt so bill collectors can make 1000% profit from your misfortune.

Leave on CR as a paid chargeoff. Pay over 40,000 dollars in extra interest

on your next mortgage.

2. Negotiate at 25-50% payment in return for removal of tradeline. Pay a

respectable rate on your next mortgage.

The buyers and collectors of debt tend not to be ethical. Its business. You

should also treat it that way. Ethics be damned.

[BrassFan]

<blockquote>Originally posted by timbercreektech

So I agree with paying what is owed. However, some debts actually double

because of over the limit fees, late payments, etc... So a 1039 debt can come

up to 2000. These are sometimes debts that are sold for pennies on the dollar.

So what is more ethical:

1. Pay debt so bill collectors can make 1000% profit from your misfortune.

Leave on CR as a paid chargeoff. Pay over 40,000 dollars in extra interest

on your next mortgage.

2. Negotiate at 25-50% payment in return for removal of tradeline. Pay a

respectable rate on your next mortgage.

[Swede]

<blockquote>Originally posted by BrassFan

You forgot option 3. Pay the debt you agreed to pay originally, plus "REASONABLE" fees (interest and late charges). Negotiate with the OC or CA to reduce the fees to something reasonable and then pay what you owe. If they're willing to negotiate.

</blockquote>

Ahhh but we're forgetting the most important part ...........this is a credit repair board, paid or unpaid charge offs and collections WILL hurt you and as far as the "reasonableness" well if the furnishers were a little more cooperative, I would GLADLY pay anything I'd ever owed if they would just be willing to work with me- but they're not and most of them WILL NOT REMOVE in exhange for payment, that IS the sad truth.

When all is said and done and it's been deleted, you still have an option to pay it off I you feel you need to do so, what I'm trying to say is that starting out your credit repair journey by paying off the derogs IS NOT THE RIGHT STEPS if you're serious about fixing your credit and that's why we're all here.