Jump to content

What does this mean?


Goalie
 Share

Recommended Posts

Sort of a long post, but I'm hoping someone will know what this means....

I had a credit card account with USAA, the limit is $3000.

Approximately 2 years ago, I had been paying regularly on the account but then I lost my job and was unable to keep paying the minimum balance. I missed 1 payment and the fees after that were just too much for me. Every month I would make a payment and the next month my balance was even higher.

I got frustrated and just gave up at that point. I received a few letters from them, one was a settlement letter, but they only wanted the payment in full, which was an amount I didn't have at the time.

Now, I really want to settle this debt because it is one of the few things that is hurting my credit.

My question is, I am not sure if this is right but I use truecredit for credit monitoring and I notice now that each month they are raising my "past due" amount, but it says the account is charged off and closed.

Can they continue to run up your balance if the account is closed??

Is the account perhaps not really closed like it says on my reports?

I'm so confused with this one...Here's how it reads:

Condition: Derogatory

Balance: $3,034

Type: Credit Card

Pay Status: Collection/Chargeoff

Past Due: $1,355 (up $30 from last month)

High Balance: $3,034

Remarks: Charged off as bad debt Account closed by consumer (It was not closed by me)

Link to comment
Share on other sites

Just because an account is closed does not mean the interest stops. You can close an account, which you apparently did as indicated "closed by consumer", but until you pay off the balance, interest accrues. The debt being "charge off" only means that they have either sold the debt to a JDB or turned it over to collections. I am not sure how it works for the cc company, but I am guessing that there is some accounting reason as to why they document the accounts as charged-off within only a brief period after the initial delinquency.

I am sure there are some here on this board more experienced and would have the answer to that.

Link to comment
Share on other sites

You may not have said right up front that you want the account closed, but they took into consderation that you coun't pay it as you wanting to close the account and did so.

Charge off means that they have written off the balance under their insurance, not that it has been sold or assigned to anyone for collections

If you read the back of your application it states that they can continue to charge over the limt fees and late fees if you default as well as any interst fees, YES I think it chouls be illegal myself, if the account is CLOSED then it is closed to all tansactions, BUT that is the way YOU and I think, they are thinking differently.

I personally since it is NOT with a CA YET, would send them a letter explaing your situation at the time and if it has improved now and that you would like to make an offer to settle the account in exchange for the deletion of it upon the payment or the final payment, GET IT IN WRITTING!

It is sort of a goodwill PFD letter, you tug their heart strings with a sad story and make then even happier by letting them know you want to handle your obligation but will not fall for their over usage of the abitration laws on their contract.

Link to comment
Share on other sites

You may not have said right up front that you want the account closed, but they took into consderation that you coun't pay it as you wanting to close the account and did so.

Charge off means that they have written off the balance under their insurance, not that it has been sold or assigned to anyone for collections

If you read the back of your application it states that they can continue to charge over the limt fees and late fees if you default as well as any interst fees, YES I think it chouls be illegal myself, if the account is CLOSED then it is closed to all tansactions, BUT that is the way YOU and I think, they are thinking differently.

I personally since it is NOT with a CA YET, would send them a letter explaing your situation at the time and if it has improved now and that you would like to make an offer to settle the account in exchange for the deletion of it upon the payment or the final payment, GET IT IN WRITTING!

It is sort of a goodwill PFD letter, you tug their heart strings with a sad story and make then even happier by letting them know you want to handle your obligation but will not fall for their over usage of the abitration laws on their contract.

Thanks for your helpful reply. I was thinking of doing that since I would like to pay it off to stop theses charges each month that they are adding on. I hope they will agree to a PFD because it will sting to pay them and not have it deleted. I actually didn't even use the full limit but they added the fees so that made the balance higher and higher. Luckily this is my only credit card that this has happened to, and it will definitely be the last because I barely use my cards.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.