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Does Crap1 CO stop balance from increasing?


the aussie
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G'day Mates....

In my continuing efforts to repair credit...I have a question for the experts that I do not understand. When an account is charged off, should the balance remain where it was at the time of charge off by OC?

Here is the info on acct:

CAP ONE BK

Address:

PO BOX 85015

RICHMOND, VA 23285

(800) 903-3637

Account Number:

XXXXXXXXXXX

Status: Account charged off/Past due 180 days. $XXX written off. $XXXXX past due as of Nov 2006.

Status Details: This account is scheduled to continue on record until Feb 2010.

Anyone care to enlighten me I would appreciate....

The Aussie

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G'day Mates....

In my continuing efforts to repair credit...I have a question for the experts that I do not understand. When an account is charged off, should the balance remain where it was at the time of charge off by OC?

No, interest and fees will continue to accrue. "Chargeoff" is simply an accounting term. Should the OC sell the account to a junk debt buyer, then the OC must then report a $0 balance with the notation "sold to another lender." The junk debt buyer/CA then has the right to report the account with a balance.
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I was recently denied an autoloan which is what propted my quest to repaur my credit and one of the biggies was too many recent late pays. Without having any accounts open...I could not understand that.

It would appear that with Crap1 reporting new balance each month that It looks lie I have current late pays, when in fact the late pays are 4 years old.

Also, I am not an accountant, but I thought a CO was more than an accounting term. If they "write off $768" as is being reported wouldn't that be more considered an action as opposed to a term? When companies write off debts, isn't it for a tax reason which means they benifited from the write off?

The Aussie

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The terms "charge off" and "write off" are, I beleive, intentionally designed to confuse both the debtor and less-sophisticated lenders. Reporting monthly "lates" on an account that hasn't seen any activity for years is legal...its just that most lenders don't bother. Crap 1 seems to be trying to "poison" credit files with such tactics...

The key phrase is "sold to another lender"...everything else is really just accounting magic. They may actually "write off" an amount in connection with some internal accounting/tax problem they're dealing with...

The bottom line is that until its actually sold, they can continue to charge interest and fees and report it as late..

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The terms "charge off" and "write off" are, I beleive, intentionally designed to confuse both the debtor and less-sophisticated lenders. Reporting monthly "lates" on an account that hasn't seen any activity for years is legal...its just that most lenders don't bother. Crap 1 seems to be trying to "poison" credit files with such tactics...

The key phrase is "sold to another lender"...everything else is really just accounting magic. They may actually "write off" an amount in connection with some internal accounting/tax problem they're dealing with...

The bottom line is that until its actually sold, they can continue to charge interest and fees and report it as late..

Just may be Crap 1 Credit Reporting "tactics" are considered as legal, But Crap 1 is certainly AGGRAVATING with their "dirty tactics." I would prefer that they file suit prior to the SOLC than to be Aggravating for 7+ years. it appears that Crap 1 will abuse or harass debtors until their account(s) falls off.

Under Florida Consumer Laws, I would Dispute with Crap 1. Crap 1 will most likely violate Section 559.72 (6). Considering their continuous dirty tactics, they are violating section 559.72 (7) as well. Allow the judge to determine. If the SOLC had expired, they cannot countersue whether or not I owe the debt. :-)

Best Regards,

June

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