should the charged of credit card be paid?

Question

i have a charged off credit card from 5 years ago. when i first tried to make payment arrangements the agency told me that i could only either make the full payment, pay half then the other half at a scheduled time, or pay it in three payments. it was still too much for me at the time and i couldn't find enough funds for any of those options. due to not making much money at the time, i didn't try again to pay it. i spoke to a new agency recently that told me i can now make monthly payments (which will still take a few years to pay off). however, it's been five years now and i have actually been able to rebuild my credit score which is around 650 now. is it worth it to do the monthly payments for a few years or should i wait another 2 years for it to fall off my report? i can do the monthly payment but i am also a full time student still struggling. any advice?

Answer 1

As far as the 7 year reporting period, it has nothing at all to do with your states collecting SOL.

If you are still within the collecting SOL the collection agency does have a legal right to try to collect even if it means filing suit.

If you are past the collecting SOL, the collection agency still has a legal right to try and collect but "does not" have a legal right to sue. One thing to keep in mind is that even though it would be illegal to sue, it does not stop them.

If you are past the collecting SOL you do have a legal right to send the collector a SOL letter informing them the debt is no longer legally collectible. Should they be stupid enough to file suit after receiving that letter, the judge would not look to kindly on them and you could possibly receive up to $1000 for that violation if you file a counterclaim.

If you are past the collecting SOL and they file suit, you have a legal right to claim affirmative defense of SOL and file a counterclaim against them for filing on a time barred debt.

If you plan on paying you should sent them a validation request before you start talking payment. Among other things, make them prove that they have a legal right to collect on that debt.
If they properly validate, you should send them a letter requesting that they delete from your reports and that they agree to take a lesser amount as "payment in full". Be sure that you have that agreement in writing (with their signature) before you send them a cent. (otherwise you may find that agency or another trying to collect on the full amount or remaining portion)

You should never speak to a collector on the phone
You should always correspond by mail.
You should never sign anything you send to a collector, only print your initials or type your name.
You should always send your letters, to a collector, certified mail return receipt.
If you pay, you should never pay by personal check, only use money orders or cashiers checks.

You might click on my profile and click on the last link I have listed. It is a free site where you will be able to find sample letter templates for validation and SOL. You will also be able to find the collecting SOL for your state.

Answer 2

Scrape up 50% of what you owe. Call them, and offer them 50% of the balance as a settlement in FULL. (dont call until you have the funds to pay the 50%)

If they agree (which they will), get it IN WRITING before you send them a dime.... and send them A CHECK (no drafts). Save letter and proof of payment for the rest of your life.

If you dont pay this... it will come up later... maybe in 10 years when you get served with a lawsuit. Maybe in a few years when you are trying to get a mortgage.

Yes, it is 7 years for your credit report... but they can sue you anytime, and get a judgment against you as well. Who knows what will happen in your life over the next several years, and you dont want this crap coming up at a bad time, which Murphy's law gurantees.

Answer 3

Regardless if you pay it off or not. Your credit score doesn't change. I wouldn't worry about it and wait for it to fall off. As long as you are keeping up with payments and are in good standing now, it shouldn't hurt you too much. Usually when there is a charge off that old, Most creditors don't even look at them...

Answer 4

do not open the letters. simply write on the outside of the envelope, "addressee no longer at this address," and leave it for the postman to pick up. The letter will be returned to the credit card company, which will then adjust its database accordingly and write off the account as a loss.

Answer 5

dont pay a dime. they are past the statue of limit. wait for 7 year mark