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 tlanum
Joined: 17 Nov 2006
Posts: 7
3.95 Dollars($)
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 Posted: Fri Nov 17, 2006 1:56 pm Post subject: Is it legal to charge off debt even after a settlement? |
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While reading through the other Charge-Off Post it did not answer the question I have.
I had a credit card that i could not pay and it went to collection.
I called them and settled for about half the balance of $1000 to $500.00
The person i spoke with did not make the chargeoff perfectly clear to me and I expected to see a zero balance on my credit report.
after a few months went by i noticed my reports stating I owed $500.00 but was current, charged off and closed by me.
I complained to them and looked at the faxed settlement letter and then relized what they were doing and had done.
1. Is this legal ?
2. From the other posts one person stated its as bad as a bakruptcy within two years - Is this true?
3. Does a charge off on my credit report keep my score from ever going up
4. Can the charge off be sold back into a collection company even though they settled and closed the account.
Since its within two years I might pay the remainder if they will remove it from my credit report.
If they will not remove it after payment and its still on my report as paid in full will the credit score go up any even though at one time it was a charge-off.
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mkoin
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| Posted: Fri Nov 17, 2006 2:32 pm Post subject: |
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Hi,
| Quote: | | Since its within two years I might pay the remainder if they will remove it from my credit report. |
After paying off the remaining of the charge off amount you can ask them to remove it from your report.
Your credit will start improving after it is report to the credit bureau as paid. |
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Kate Beckinsale
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| Posted: Fri Nov 17, 2006 3:20 pm Post subject: |
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Hi,
You have mentioned that you had settled the account for half of the actual balance and they had given you a account settlement letter then you can dispute the account being reported to the credit bureau as being a charge off.
As after the account is settled it cannot be reported as a charge off. |
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Pelland
Guest
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| Posted: Fri Nov 17, 2006 5:07 pm Post subject: |
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Hi,
| Quote: | | 1. Is this legal ? |
I too agree with Kate, if you got the settlement letter then you would be able to prove that the charge off is not valid & illegal and dispute the charge off with the bureau.
- Jennifer Pelland |
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| Posted: Sat Nov 18, 2006 2:55 pm Post subject: |
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I have just looked at the initial settlement letter and it speaks of no charge offs with a balance but says the account will be settled in full and any outstanding judgments as satisfied and release of any outstanbding liens and garnishments.
I also have the paid letter stating it has been settled but the remainder will still be on my credit report and they will not try to collect it but future creditors might request payment.
Sounds like future collection agencies to me.
I will contact them to see if they will remove the balance but i doubt they will.
I do not know where to go with this.
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tlanum
Joined: 17 Nov 2006
Posts: 7
3.95 Dollars($)
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| Posted: Sat Nov 18, 2006 2:57 pm Post subject: |
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| Thats was ME not logged in |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.11 Dollars($)
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| Posted: Sun Nov 19, 2006 10:46 pm Post subject: RE: remove charge off from credit report |
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Hi Tlanum,
If the report says that your account has been settled in full, well then you may not have any problem with the score. It will go up as you start taking any other credit and pay for it regularly. And, if you think there can be future problems with the unpaid amount, better pay it off right now and request your creditor to report this to the bureau so that they can update your credit report accordingly.
Thanks,
Sara |
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