Help with collection account from Jan 2004

[mnala]

I had an old Chase account that was settled in 2003. They were supposed to charge off the remaining debt, but instead sent it to collections.

"The Bureaus Investment Group" got the account in Jan 2004. The amount then was $1920.

I just checked my credit report and it shows "Date Reported 12/2008" and the balance $3705. Yes, it's the same account - they've added interest.

I know the SOL is up for the original debt. Is there anything I can do to get this off my report now? Do I have to wait 2 more years for it to come off automatically?

I haven't heard from them in YEARS so I am afraid to do bother it. If I were to make a "pay for delete" offer, what would be a reasonable offer?

Help!!

[mnala]

BTW - the last payment on the original account with Chase was around July 2003.

[Wiser Now]

I would send the CA a letter and advise them the account was settled directly with chase on x date and enclose a copy of your documentation.

If your facts are accurate, you don't owe these guys anything.

[swirlgirl]

Charging off and being sent to collections is two different matters. Charging off is an accounting term meaning they took the active debt off their books. It doesn't have anything to do with collections. The debt has been charged off AND sent to collections. This is normal.

The 7-7.5 year reporting period is based on the date of first deliquency. When did the debt first go deliquent? If it was in 2002 or earlier, you can try disputing with the CRAs as "obsolete." The "date reported" has nothing to do with the 7-7.5 year reporting period.

The SOL is different from the reporting period and would come into play if the CA filed a lawsuit on the debt (which they can do).

Try disputing with the CRAs first.

[mnala]

Thanks so much for you input!

Charging off and being sent to collections is two different matters. Charging off is an accounting term meaning they took the active debt off their books. It doesn't have anything to do with collections. The debt has been charged off AND sent to collections. This is normal.

That is exactly what happened. I was stupid and didn't get the settlement agreement in writing before I paid, so they did not honor the verbal agreement I made on the phone before payment was made. Oh well...

I paid the amount I agreed to pay but they held me responsible for the balance and I refused to pay it.

The 7-7.5 year reporting period is based on the date of first deliquency. When did the debt first go deliquent? If it was in 2002 or earlier, you can try disputing with the CRAs as "obsolete." The "date reported" has nothing to do with the 7-7.5 year reporting period.

That answers my question. The debt first went delinquent around July/August 2003 (would have to go back and find exact date), so it's only been 5.5 years.

So, I guess I should dispute with CRA and see what happens. If it doesn't come off (i doubt it will) then I'll just have to wait until it comes off in 2-2.5 years.

The only other option is to try and get them to work out a "pay for delete" agreement - not sure it's worth it.

Any idea of how much this is actually hurting my credit score at this point? It's the only really bad thing I have on there.

[Wiser Now]

Any idea of how much this is actually hurting my credit score at this point? It's the only really bad thing I have on there.

Chances are, not a lot. The older an item, the smaller the negative impact.

Go to bankrate.com. Somewhere on their site is a tool to model your credit score. You can set up your situation and then manipulate different items to see what it does to your score.

Don't live your life by your credit score. We would all be wiser and happier if we started paying cash and burned all the credit cards. I'm serious -- credit is a cancer.