Question about OC with CO accounts

[gcis]

I have three accounts still with my OC. Accounts are as follows.

1. Installment account. Date opened: 7/03 Date closed: 8/05

2. Credit card account. Date opened: 7/04 Date closed: 2/05

3. Credit card account. Date opened: 7/04 Date closed: 2/05

All the accounts are reported to CRA as CO as bad debt. None of the

accounts have been send to CA or reported by CA to the CRA.

But as remarks it says: "Transferred to recovery"

What is my best option in here?

1. Sould I contact OC?

2. can I still settle with OC, if they don't send it to CA?

3. Is this norm for OC, not to send CA after reporting as CO?

[hopelesscred]

Someone can correct me here as I will take a stab at your question..first there are tons of info on this very subject "settling debts with the OC"

I would contact them asap b4 they start reporting it as a Charged off account or send it to a CA

here is the link:

www.creditinfocenter.com/debt/originalcreditor_debtsettlement.shtml

[thomassl]

The OC can hold onto the account for 3 yrs. if they wish. They can charge it off and send the balance to you on a 1099 tax form as well. They do not have to use CA's if they don't want to. They can also sue you. Many OC's have their own collection methods and do not necessarily use someone else.

[gcis]

Someone can correct me here as I will take a stab at your question..first there are tons of info on this very subject "settling debts with the OC"

I would contact them asap b4 they start reporting it as a Charged off account or send it to a CA

here is the link:

www.creditinfocenter.com/debt/originalcreditor_debtsettlement.shtml

Hi hopelesscred,

I know the procedure. Not only that I also purchased the book 'Good Credit is Sexy' but my situation is little bit different. These are more than three years old accounts and very close to SOL. All those accounts already been reported as CO to CRA. That why I need more advice from this board. Thank for your advice anyway.

[Amerikaner83]

I have three accounts still with my OC. Accounts are as follows.

1. Installment account. Date opened: 7/03 Date closed: 8/05

2. Credit card account. Date opened: 7/04 Date closed: 2/05

3. Credit card account. Date opened: 7/04 Date closed: 2/05

All the accounts are reported to CRA as CO as bad debt. None of the

accounts have been send to CA or reported by CA to the CRA.

But as remarks it says: "Transferred to recovery"

What is my best option in here?

1. Sould I contact OC?

2. can I still settle with OC, if they don't send it to CA?

3. Is this norm for OC, not to send CA after reporting as CO?

1. YES, IF the SOL is still in effect for your state

2. Maybe - they got their teax bennies when they charged off the account. Again, if the SOL is past, it could work a bit differently

3. Depends on which OC and how they're feeling. If they have internal collections (like Crap1), yeah it is normal.

"transferred to recovery" sounds like it's an internal collections thing. It also looks, based on the limited info I have, that if you NEVER made a payment (hypothetically) since you opened the account, you would still be within SOL.

Which OC is it, BTW?

[gcis]

The OC can hold onto the account for 3 yrs. if they wish. They can charge it off and send the balance to you on a 1099 tax form as well. They do not have to use CA's if they don't want to. They can also sue you. Many OC's have their own collection methods and do not necessarily use someone else.

Hi thomassl,

Do you think they can still sue me after they reported as CO? Balance for all those three accounts combined little over three thousands. I am willing to settle with them but trying to get the best advice from people like you. I have learned my lessons by ignore my credit. Now I want to rebuild it and get over my frustration.

[gcis]

1. YES, IF the SOL is still in effect for your state

2. Maybe - they got their teax bennies when they charged off the account. Again, if the SOL is past, it could work a bit differently

3. Depends on which OC and how they're feeling. If they have internal collections (like Crap1), yeah it is normal.

"transferred to recovery" sounds like it's an internal collections thing. It also looks, based on the limited info I have, that if you NEVER made a payment (hypothetically) since you opened the account, you would still be within SOL.

Which OC is it, BTW?

SOL is four years in my state and I also made payment initially before I got hit very bad financially. OC is a Federal Credit Union.

[Amerikaner83]

OK so you are well within SOL - darn.

YES they CAN still sue you after it's reported as CO. CO is just an accounting term. Whomever has control of the account can sue you if they so wish. Until SOL is up, you have no SOL defense. But that's OK.

In my experience with Federal Credit Unions, they are more lenient than other creditors like Crap1 or Providian. I'd send them a letter expressing your "regret that you were unable at the time to honor your financial obligations...blah blah blah". Basically, let them know you ARE willing to pay them their money (albeit in monthly payments, or lump sum if you have the cash)...

If you're honest with them and willing to settle....send a settlement letter to them, mixed with a little goodwill letter. Don't go quoting laws and crap yet - as you don't want to piss them off. Basically be Joe Consumer trying to do the right thing. If this big company would be so kind as to take a settlement if all these accounts are paid 50%, well that's just great. Joe Consumer would be even more humbled and appreciative if the negative tradelines in his credit report are changed to "pays as agrees" with no mention of CO, why that would be even better....Joe might be able to even pay a bit more for that outcome......

get my drift?

[gcis]

OK so you are well within SOL - darn.

YES they CAN still sue you after it's reported as CO. CO is just an accounting term. Whomever has control of the account can sue you if they so wish. Until SOL is up, you have no SOL defense. But that's OK.

In my experience with Federal Credit Unions, they are more lenient than other creditors like Crap1 or Providian. I'd send them a letter expressing your "regret that you were unable at the time to honor your financial obligations...blah blah blah". Basically, let them know you ARE willing to pay them their money (albeit in monthly payments, or lump sum if you have the cash)...

If you're honest with them and willing to settle....send a settlement letter to them, mixed with a little goodwill letter. Don't go quoting laws and crap yet - as you don't want to piss them off. Basically be Joe Consumer trying to do the right thing. If this big company would be so kind as to take a settlement if all these accounts are paid 50%, well that's just great. Joe Consumer would be even more humbled and appreciative if the negative tradelines in his credit report are changed to "pays as agrees" with no mention of CO, why that would be even better....Joe might be able to even pay a bit more for that outcome......

get my drift?

Hi Amerikaner83,

Thank you for your honest advice. If I want settle with them with monthly payment, what do think I should offer them for my negative ratings? Can OC able to remove all the negative ratings from CRA's?

[Amerikaner83]

Thank you for your honest advice. If I want settle with them with monthly payment, what do think I should offer them for my negative ratings? Can OC able to remove all the negative ratings from CRA's?

The OC can do whatever the heck they want with the CRAs, as the OC is the one giving the CRAs the info.

Let's do a little sample here:

Suppose there's $1,000 on each one (for the sake of argument and easy math), 3K total. To the OC, ideal resolution is you pay them 3K. To you, ideal resolution is the full deletion of negs off your report. Notice I made no mention of $$ here. You will pay them whatever (up to a limit, of course) if they delete the neg's from your report right? Right.

So let's say you go back and forth with them and they finally agree to delete the neg's for 50% of what they want (which is 500 bucks for each TL, x 3 TLs = $1500). So you pay them 1500 bucks and it all goes away right?

Not necessarily. See, during the time you were going back and forth with these people (snail mail, CMRRR if you like - which I recommend), you were saving your monthly payments in order to give them some upfront cash. Any OC I know is more likely to work with someone who will pay them NOW, as opposed to for the next year or so. Also during the back-and-forths, you should be clarifying how your reports will reflect payment. "pays as agrees" is OK, but a DELETION of the TL is preferred. This must be stipulated to in writing before they see a single red cent.

So you see where I'm going with this?

[gcis]

The OC can do whatever the heck they want with the CRAs, as the OC is the one giving the CRAs the info.

Let's do a little sample here:

Suppose there's $1,000 on each one (for the sake of argument and easy math), 3K total. To the OC, ideal resolution is you pay them 3K. To you, ideal resolution is the full deletion of negs off your report. Notice I made no mention of $$ here. You will pay them whatever (up to a limit, of course) if they delete the neg's from your report right? Right.

So let's say you go back and forth with them and they finally agree to delete the neg's for 50% of what they want (which is 500 bucks for each TL, x 3 TLs = $1500). So you pay them 1500 bucks and it all goes away right?

Not necessarily. See, during the time you were going back and forth with these people (snail mail, CMRRR if you like - which I recommend), you were saving your monthly payments in order to give them some upfront cash. Any OC I know is more likely to work with someone who will pay them NOW, as opposed to for the next year or so. Also during the back-and-forths, you should be clarifying how your reports will reflect payment. "pays as agrees" is OK, but a DELETION of the TL is preferred. This must be stipulated to in writing before they see a single red cent.

So you see where I'm going with this?

Hi Amerikaner83,

Thank you again for your valuable advice. I also feel that you directed me to the right direction. If I want to settle with OC with the full amount but in monthly terms in return of total DELETION of all the negative listings, is a good idea? Federal Credit Union is few miles from my work, should I meet with them face to face? Bad or Good idea?

[ps7psp9]

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=248122

Here is a link for more information on multiple Chargeoff's on account...

[Amerikaner83]

I would let them know that's what you are wanting to do....but I'd try my damndest to get as much of a "down payment" as I can to pay upfront. It's sad, but the more $$ they see upfront, the greater the chance they'll do what you want (IMHO). Remember, in your negotiations you'll offer A, they'll offer B, you'll offer C, they'll offer D, and you'll settle somewhere around F. Your goal is to have F be as best for you as possible.

I don't think it would hurt to go to the credit union in person - the only thing is I personally would not do any negotiations there. I would use mail when in negotiations. The reason for mail is not only to have a paper trail, but to buy yourself some time to have a larger "dowm payment". If you did go in person, I would just go in person to let them know that you are serious about paying the debt, (so they won't send it to a CA). But chances are, the people at the branch may not have your acct info any longer - it could be in the "central database" - usually the bank's head office or whatever.

It's worth a shot. Let me know what you do ok?

All that being said, they could have a bug up their @$$ and not settle for anything less than full payment in return for not suing. Never know.

[neish0424]

So even on a credit account ( like a credit card) they can still delete it fully of the report if they wanted too?

[Amerikaner83]

So even on a credit account ( like a credit card) they can still delete it fully of the report if they wanted too?

YES they can.

Whether they do it or not...that's a different story

[neish0424]

so how would you go about negotiating that with them? Has anyone ever been successful in getting them to delete credit accounts of their report?