Posted on: 19th Apr, 2007 01:31 pm
I needed some advice on if it would be good to pay full but a reduced amount on a charged off account or should I rather pay the full amount & if I do pay the full amount how would it affect my report. Few days back I received one letter from capitol one, which showed it as being paid in full. They said in the letter that as I have paid in full it will be reported so to the bureaus but with a R9 rating!! will that make the score drop or as I have paid the charge off in full it would be of help?
Hi Magnor,
Welcome to Mortgagefit forum.
As compared to a paid in full account any paid charge off account will not help in increasing your score. An R-9 rating is not regarded as good and it basically stands for collections, charge offs and repossessions and it affects negatively. You should contact them to request it being reported to bureaus as paid in full instead of "charge off paid".
You must have paid a settlement amount instead of actually paying the account in full and because of that is being informed that it will be reported as R-9. Like if you owe $3000 and as per settlement agreement paid only $2300, they will report the account with an R-9 rating.
Colin
Welcome to Mortgagefit forum.
As compared to a paid in full account any paid charge off account will not help in increasing your score. An R-9 rating is not regarded as good and it basically stands for collections, charge offs and repossessions and it affects negatively. You should contact them to request it being reported to bureaus as paid in full instead of "charge off paid".
You must have paid a settlement amount instead of actually paying the account in full and because of that is being informed that it will be reported as R-9. Like if you owe $3000 and as per settlement agreement paid only $2300, they will report the account with an R-9 rating.
Colin
"]I needed some advice on if it would be good to pay full but a reduced amount on a charged off account or should I rather pay the full amount & if I do pay the full amount how would it affect my report."
One advice for you Magnor, you should always ask them to agree on payment for deletion of the account from your report. Negotiate to make them agree to remove the account from report by accepting a reduced paid in full. And only pay them this amount when they send you in writing that they agree to have it removed by receiving the amount. Most do agree after you negotiate properly.
Miller
One advice for you Magnor, you should always ask them to agree on payment for deletion of the account from your report. Negotiate to make them agree to remove the account from report by accepting a reduced paid in full. And only pay them this amount when they send you in writing that they agree to have it removed by receiving the amount. Most do agree after you negotiate properly.
Miller
Magnor,
"
I needed some advice on if it would be good to pay full but a reduced amount on a charged off account or should I rather pay the full amount & if I do pay the full amount how would it affect my report.
One point to note is that how long the debt has been charged off. If the SOL period on the debt is close to be what it is in your state then the account will be off your report soon and you need not pay any amount on it to get it removed from your report."
"
I needed some advice on if it would be good to pay full but a reduced amount on a charged off account or should I rather pay the full amount & if I do pay the full amount how would it affect my report.
One point to note is that how long the debt has been charged off. If the SOL period on the debt is close to be what it is in your state then the account will be off your report soon and you need not pay any amount on it to get it removed from your report."
my credit card account was sold to ca after being charged off, after that I settled the amount with the ca and paid off but what I see on my cr is that the creditor is reporting it as charge off while ca is also reporting the same debt as a paid collection. shouldn't it be just 1 negative entry on the report instead of both being reported.
Hi Diane,
Welcome to Mortgagefit forum.
This is what happens when the creditor charges off the debt and it is sold to collection agency.
After your account is charged off and placed in collection, they will report the account to the bureaus as charged off with 0 balance. Collection agency on the other hand will report the account as paid charge off.
Creditor here is not reporting to bureaus that you still owe them some amount but it is reported that you didn't pay the actual sum and they had taken help of some collection agency to make the collection. Even after you have paid off the collection as agreed with the collection agency, it will still show up on your CR as collection account. So both the reporting is correct actually.
Colin
Welcome to Mortgagefit forum.
This is what happens when the creditor charges off the debt and it is sold to collection agency.
After your account is charged off and placed in collection, they will report the account to the bureaus as charged off with 0 balance. Collection agency on the other hand will report the account as paid charge off.
Creditor here is not reporting to bureaus that you still owe them some amount but it is reported that you didn't pay the actual sum and they had taken help of some collection agency to make the collection. Even after you have paid off the collection as agreed with the collection agency, it will still show up on your CR as collection account. So both the reporting is correct actually.
Colin