Hello everyone! This is my first time posting here, and I wish I had found this website sooner. I have a dilemma at the moment, with two questions I would like answers for, that I have not been able to find.
I had an outstanding balance from a local University that was sent to collections and written as a Chargeoff on my credit report. I recently finished paying off the balance in February of 2009. I was told by the collection agency that I would recieve a Paid in Full letter within 60 days, and that it would reflect as such on my credit report. It has been almost 90 days now since my final payment was posted to them (February 20th), and I have yet to receive a letter, or see any change on my credit report other than the balance now reflecting as $0. How long should I wait before I contact someone? And who should I contact? The university? The attorney generals office that it was referred to? The collection agency it was passed to by the AG? The Unversity confirmed to me over the phone that the balance was paid, but would not talk about my credit report.
My second question, which involves the same situation, is this. The reason that I took on the debt, was that I was given conflicting information from one of the Financial Aid officers of the University. I was told to do one thing, and later on told by other representatives that what I did was not allowed, and subsequently my Loans were never paid out, leaving me with a semesters worth of Tuition as debt. I read about PFD items, but did not think that this would be an situation where it would be applicable because University debt was handled by my states Attorney General office. What recourse do I have to attempt to get it removed, and plead my case of being mislead? I asked their office over the phone, and was laughed at, which was rather disheartening and aggrivating, not to mention rude.
Thanks in advance for any help anyone can provide!
-Tony
Hi TBova,
In your second query are you talking about the same University debt that you have already paid off? Do you have a written agreement from the collection agency that they would remove it, once you pay the debt? Or is it that they only mentioned it verbally, that they would remove it within 60 days from the day you pay the debt in full? It is necessary to retain documents of whatever agreement you make with the collection agency.
In most cases, a charge-off remains in your credit report for a period of 7 years, from the day you have become delinquent. Even paying off the debt will not remove the charge-off from your report. You can write a letter to the collection agency, requesting them to report to the credit bureaus that the charged-off account has been paid in full. Negotiate with them, so that you can at least settle for “Paid as agreedâ€.
Yes, it is the same University debt that was already paid off, and no I did not get any sort of oral or written agreement as to it being removed from my credit report. When I inquired about it, they said that any and all reporting was done by the Original creditor, which was the university. They are the ones that I asked, post-payment, about having it removed. I do understand the 7 year wait, but I am hoping I have some recourse due to being misled by them directly. Had that not happened, this would be a regular Stafford loan, and I would not be paying anything until I graduated.
Sorry, that above post was me. I forgot to log in before I replied.
-Tony
Hi TBova,
Your debt account has already been sold off to the collection agency(CA) by the University, your original creditor. So now there is no use contacting the University. You can request the CA to remove "charge-off" from your credit report and list the account as "Settled" or "Accounts closed". Even if they do not agree, as long as your debt account balance shows $0, I do not feel you will have difficulty in getting a new line of credit.
Creditors will be more interested in the fact that you are trying to improve your credit history. As far as the "charge-off" listing in your credit report is concerned, it will cease to affect your credit history with time.
Can a collection agency charge a fee for deletion letters???
I reside in the state of Florida and I'm am trying to pay off a debt in which a creditor claims I owe. They have yet to provide me with evidence of original debt owed. But because I am applying to several key positions which requires me to have a clean credit history I have decided to just pay off the balance in agreement that they provide a deletion letter as confirmation in writing that the debt has been paid in full and that they would remove all negative report to all bureaus that I no longer had a balance. I was told by the agency that an additional fee would be required by me in order to provide a letter with my request. I feel that this additional service fee is unjustified. Can someone please assist me with this matter as I do not know if their actions are legal and binding.