pursuit Posted February 3, 2005 Report Share Posted February 3, 2005 Hello all,I must say that this site has been more informative than I imagined it could be! I've got my family and the office on a credit awareness plan.On to my question:I'm in the process of attempting to settle a chargeoff with Household/Levitz which was opened approx 9/02. My CL was $3000 and I charged $2700 deferred. When payment came due I was hurting for money so I never was able to make a single payment. Bottom line, chargeoff reporting $4607 on all 3 CRA's. I have disputed but my goal is not to magically make my responsibilities disappear. Integrity matters. So, I am aiming for the original purchase amount minus exorbinate fees and late assessments. As I have not yet drafted the letter, I would shoot for around $3000. If I am in fact able to secure such a settlement ($3000 in lieu of $4607 with stipulation for update/delete) when would I become responsible for reporting any difference in value to the IRS?Also, Bureas are showing sold as bad debt/co but no outside CA has contacted me or is reporting. How do I know if they have in fact SOLD the debt as opposed to assigning it? Link to comment Share on other sites More sharing options...
pursuit Posted February 4, 2005 Author Report Share Posted February 4, 2005 bump Link to comment Share on other sites More sharing options...
willingtocope Posted February 4, 2005 Report Share Posted February 4, 2005 Welcome...First of all, your sense of integrity is to be commended, but realize that you do not owe the CA anything. Your debt to household has already been charged off against their tax returns and the US taxpayer has compensated them for their "loss". If the CRA show "sold" then that's what it better be, or the OC is in trouble for reporting incorrectly per the FCRA. And, the CA bought the debt for pennies on the dollar...which means they probably paid about a buck and a quarter for your $2700 debt.So...there's no good reason to settle with the CA....whoever they turn out to be. You will be contacted by them sooner or later. If Household did indeed sell the debt, then the CA will tell you they can't do anything about the OC original TL on your credit report...probably true. When the CA sends you the collection letter, DV them and make them prove the debt. At this point, unless you need your CRs cleaned so you can buy a house, there just isn't a good reason to settle with a CA. Even then, a paid collection is almost as bad as a charge off. Link to comment Share on other sites More sharing options...
pursuit Posted February 4, 2005 Author Report Share Posted February 4, 2005 thx for the reply.My concern is this...although the account was opened in late 02, I need to get it off my report in whatever way possible. I'm afraid that I might be able to delete the TL (whether I pay or not) and then someday down the line have a CA appear and have to deal with them. As for the current status, should I just call Household? or wait for a CA? Link to comment Share on other sites More sharing options...
willingtocope Posted February 4, 2005 Report Share Posted February 4, 2005 You might try writing a "good will" letter to the executive offices at household, saying "...gee, fell on hard times, I'd like to clear this up...would you take $3000 and delete your tradeline from my reports". Don't call...OCs are worse liars than CAs. You'll need a paper trail...and be sure to get everything they reply in writing.No guarantee they'll respond. And, it is possible that even if they do and you agree to a settlement and pay them...some CA may still contact you in the future.Remember, the people you're dealing with are not honorable. They make their money by bending the truth and intimidation. Link to comment Share on other sites More sharing options...
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