I can't figure out the best way to try to fix a charge-off on my credit report – can anyone advise me?
Three years ago, I got months behind on my main credit card, and the account (balance ~$1000) was sent to collections. That got my attention, so I got my act together and paid the agency in full over the next year, and considered the matter closed (naively perhaps).
Now, years later, my credit report contains a section from the original credit card company, marked "Bad debt/collections," and it seems like there should be some way to improve this.
The collections agency doesn't appear on my credit report – does that mean they were simply "assigned" the debt, rather than bought the debt outright? If so, then I assume they received a lot of the money I paid the agency.
I am thinking of sending them a letter requesting they mark my account "Paid in full". Since I probably made them incur collections costs, and because they probably won't do anything out of the goodness of their hearts, I am thinking of offering to send $100-250 in return.
What do you think? Is there a better way to resolve this?
Perhaps I should call them, but I was hoping to get a more expert perspective on the situation first.
(The second "they" in the fourth paragraph refers to the credit card company – sorry if that was ambiguous)
Usually after you pay off the debt there isn't to much you can do. And it is listed as a bad debt for 7 years on your credit report. You could try calling them and see if they will remove it. But since they have already got their money it seems doubtful.But its worth a try. I don't think I would offer them money.
Nope, there is really no incentive for them to do anything at this point, you are probably going to have to wait out the seven year time frame to get it off your record.
You can try contacting them but it will probably do no good now.
Hi Jack O,
How long has it been that you have cleared the debt amount? Didn't you send them a pay for delete letter before settling the debt? If this item is listed for more than 7 years, then you need to dispute it with the credit bureau. No negative item can stay in your credit report for more than 7 years. If it is not past 7 years, then you can try doing the following things.
I hope you have some kind of proof that you had already settled the debt with the collection agency. If you have that, send a letter to the creditor stating the fact along with the proof. Ask them to change your status since you have already paid the debt. If you are ready to send them that amount, then this time you must send a pay for delete letter requesting them to change the status of your debt.
Hi Justin,
It was about 3 1/2 years ago. I was just out of college and too clueless about credit to know about pay for delete letters at the time.
So you think a belated pay for delete-type letter might still work? It seems like it'd be worth it IF they would totally delete the record or (if they can't do that) change it to something like "pays as agreed". But if they're going to change it to "Charge-off, PAID" it seems like it's not worth it, since it will take 7 years to disappear instead of 3 1/2.
It does not matter if you pay them off or not. y in your negative account even of you pay it off, maybe
you can see if they will do the "pay for delete: You will need to get the agreement in writing, so if they do take you to court, you will have the paperwork to back your claim.
You may want to call the original creditor and see if they recieved any of the money you sent the collection agency. If so you need to see if you can get this debt displayed as Paid as agreed or even paid in settlement. By the way you typed in above it looks like it is still a bad debt. The collection agency did not update or even get on your report to show it was paid.