Charged Off Accounts

[dwd05]

I had a creditor charge off an account 5 years ago as bad debt. Two years later I paid it off (at a discount) through a debt collector. But it still shows on my credit report as a charge off/bad debt. Is there anything I can do about this? Another card I had with the same situation -- I started paying it off 2 years ago through a collection agency and have made my payment on time every month. But it is still on my credit report as a charge off/bad debt. What can I do since it is not all paid back yet? Last, is it worth cooperating with a collection agency for an old charge off since it doesn't seem to affect the credit report at all?

[cercis]

Ask the collection agency to remove it. Ask nicely. If they won't, ask why you should pay it.

Tell them if they won't, you won't pay. Be prepared for threats of a lawsuit (which does occasionally happen, I used to garnish wages and accounts for a debt collector)

[Bluezy]

Originally Posted by dwd05

I had a creditor charge off an account 5 years ago as bad debt. Two years later I paid it off (at a discount) through a debt collector. But it still shows on my credit report as a charge off/bad debt. Is there anything I can do about this? Another card I had with the same situation -- I started paying it off 2 years ago through a collection agency and have made my payment on time every month. But it is still on my credit report as a charge off/bad debt. What can I do since it is not all paid back yet? Last, is it worth cooperating with a collection agency for an old charge off since it doesn't seem to affect the credit report at all?

Paying off a bad debt does not make it a good debt. It went unpaid for a considerable amount of time before it was paid. Therefore, it was originally a bad debt, and it is being reported as such.

Once the debt is paid off, have the collection agency report it as satisfied to the CRA's. But know that the original debt was charged off and that fact will stay on your report for the amount of time allotted by law.

You might consider submitting a statement to the CRA about the debts, stating your circumstances that led you to not paying what you owed.

Best of luck to you!

[akaivyleaf]

I would concur with Bluezy. You should expect your report to reflect that is was a bad debt, but it now has a zero balance, and paid by the consumer on the date they received your last payment.

If the creditor won't make note of this, then you have a right to amend your report with a 100 word statement.