dr618 Posted July 17, 2008 Report Share Posted July 17, 2008 I hope I'm posting this in the right section. I just received an alert from Experian that one of my accounts is now listed as a charge-off as of 7/12, I have been paying this account off through a debt reduction program. Does this mean that I was scammed and that they were not getting the money, does it mean they transferred my account to a collection agency? I don't know what to think.I have been getting statements from the debt reduction program monthy showing what I have been paying. Thanks in advance Link to comment Share on other sites More sharing options...
willingtocope Posted July 17, 2008 Report Share Posted July 17, 2008 If you were dealing with a debt fixer, chances are very good you've been scammed. Even the 1 or 2 honest ones leave out little details in there "disclosure" that might wind up having a negative impace.I'd suggest you call the creditor and ask them what's happening. They probably will not care about whatever agreement you have with the debt fixer, but they can at least tell you where you stand with them. Link to comment Share on other sites More sharing options...
dr618 Posted July 17, 2008 Author Report Share Posted July 17, 2008 I will. Before I used a credit counselor, the account was not charged-off yet, this just happened after I started paying. Link to comment Share on other sites More sharing options...
willingtocope Posted July 17, 2008 Report Share Posted July 17, 2008 It does depend on the scam the debt fixer is running, but some of them take your money and put it in a savings account they control (and draw interest on) until "charge off" (as though that was some magic time) and then they "negotiate" a settlement with your creditors. Could be that's what you're dealing with. Link to comment Share on other sites More sharing options...
dr618 Posted July 17, 2008 Author Report Share Posted July 17, 2008 Do you think I should call the creditor to see if they have been receiving the payments? Link to comment Share on other sites More sharing options...
willingtocope Posted July 17, 2008 Report Share Posted July 17, 2008 Do you think I should call the creditor to see if they have been receiving the payments?Absolutely. Which debt fixer are you involved with? Maybe we can offer some insight into how they operate.... Link to comment Share on other sites More sharing options...
dr618 Posted July 17, 2008 Author Report Share Posted July 17, 2008 I am with debt reduction services. I just called them and asked what is going on with my account and they said that the creditor did accept the payments, when I asked why is it appearing on my credit report as a charge off as recent as 7/12 she didn't know what to say. She said to wait and if I receive anything from them in the mail to notify them. The creditor is Macys, what should I tell them if I call? Link to comment Share on other sites More sharing options...
willingtocope Posted July 17, 2008 Report Share Posted July 17, 2008 According to their web site, you should have been receiving normal monthly statements from Macy's showing the payments made. Have you? If not, call Macys and see what they think is going on...(BTW, "charge off" is really a non-event as far as us debtors are concerned. It only means "charge against income for profit and loss purposes". It has little additional detrimental effect on your credit reports...the "lates", or "working with a debt settlement company", or other things leading up to the charge off hurts more.) Link to comment Share on other sites More sharing options...
dr618 Posted July 17, 2008 Author Report Share Posted July 17, 2008 Well so far Macys received 2 payments, didn't receive anything from them yet. Also I want to add, this is an old account to begin with. I wanted to start paying it off and needed the help of a debt reduction service. Would that have anything to do with it? I also find it strange that it would go to charge off now after I started making payments and not when it first became late Link to comment Share on other sites More sharing options...
willingtocope Posted July 17, 2008 Report Share Posted July 17, 2008 Is what you're saying....the debt fixers says they've sent Macys 2 payment, but you haven't received any statement from Macys to that effect?(Debt fixers are really collection agencies that work our side of the street. They have contracts with certain creditors to "collect" for them by making us think they're doing us a favor. If you owe someone that they don't have a contract with (like Macys, maybe) then the debt fixer will take your money and put it aside. Perhaps the debt fixer contacted Macys which is what prompted them to mark your reports "charge off"). Link to comment Share on other sites More sharing options...
dr618 Posted July 17, 2008 Author Report Share Posted July 17, 2008 Yes, that's what they told me, that Macys accepted the proposal and that the payments have been going to them. Does a charge off mean it went to collections? The thing is, before I set up the payments to go to macys, I received a letter from a collection agency.The only statements I have received are the debt reduction statements showing me the amounts that went to mACYS Link to comment Share on other sites More sharing options...
willingtocope Posted July 17, 2008 Report Share Posted July 17, 2008 Call Macys.(No, charge off does not mean it went to collections. Usually, original creditors (OCs) get a collection agency (CA) involved BEFORE they decide to charge off the debt. Charge off also does not mean the debt has been sold to a junk debt buyer (JDB). Like I said, its only an accounting term). Link to comment Share on other sites More sharing options...
dr618 Posted July 17, 2008 Author Report Share Posted July 17, 2008 Thanks. I will and give an update Link to comment Share on other sites More sharing options...
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