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3 Bumps

Charged off credit card?

I had a credit card but it was charged off because I lost my job and couldn't pay it. This happened about a year ago. I haven't heard anything from a collection agenecy in quite a while until Friday. I am almost at the point where I am caught up on everything and getting my finances in good shape. The problem is I don't trust collection agencies. I have heard too many horror stories where people would pay and then 5 more collection agencies would come after them for the money even though they already paid. I have tried to contact the credit card company, but no luck. What should I do?

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Anonymous

Asked by Anonymous at 5:11 PM on Oct. 24, 2010 in Money & Work

Answers (6)
  • Keep proof of your payments.. Tell them to send you a letter when you have finished paying your dept saying you payed it off.
    louise2

    Answer by louise2 at 5:16 PM on Oct. 24, 2010

  • A lot of times when someone charges something off AND you don't hear any more from the collection agency, it means they truly wrote off the debt BUT they also reported it to the credit bureaus and it's now on your credit, which brings it down - that's the only reason a collection agency would stop, is because the cc company told them to forget it. You can still go back to the cc company and try to pay it off which in turn would make them have to take it off your credit report, but it takes a LOT of work and a LOT of time - do NOT try to go through the collection agency at all - go straight to the cc company if you want to take care of it. Double check your credit score/history too beforehand just to see what they put on it.
    Anonymous

    Answer by Anonymous at 5:20 PM on Oct. 24, 2010

  • Charged off is an accounting term which means that they can no longer count the debt as an asset so to speak. But only on the books. In reality they can still try to collect.

    If I were you I would start collecting money until you have about 50% of what you owe saved up. Then you can call them and try to settle the debt. If they won't accept it, save up a little more and call them next month and see if they will take it. Get it in writing that "x" amount will settle such and such debt (account # included) and then send them a cashiers check certified mail return receipt requested. Then you'll have their letter, a copy of the cashiers check, and a receipt saying they got the check. If anyone else tries to collect on it, you can send them copies of those three things. Keep them with you the rest of your life. They probably will try to collect again. Be polite at first, then I would threaten to sue if they keep harassing you.
    Erica_Smerica

    Answer by Erica_Smerica at 7:37 PM on Oct. 24, 2010

  • Good luck!
    Erica_Smerica

    Answer by Erica_Smerica at 7:37 PM on Oct. 24, 2010

  • Once you pay it off, report it to the credit bureaus yourself. The bureaus have to investigate it & report back to you within 30 days. This way you can be sure it gets updated on your credit report in a timely matter.
    motherofhope98

    Answer by motherofhope98 at 7:11 AM on Oct. 25, 2010

  • Keep continuing to contact the credit card company. Do it in writing (so you have proof) and over the phone. Write who you talk to, when and what they said. Ask to talk to a manager if you have no luck with the regular customer service reps.
    HotMama330

    Answer by HotMama330 at 1:55 PM on Oct. 25, 2010

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