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Author: Guppy738 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308557  
Subject: Paid Charge Off Rant Date: 1/8/2001 4:41 PM
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I hope someone can help me with this question. My credit report shows an account that is I-9 with the comments Paid-Charge off. I am confused why this account would be considered a charge off if it has been paid. The I-9 in the legend shows the account as being an Individual account charged off to bad debt. The account was in collections when I finally was able to pay it, but I thought that it should show as an I-5 which would be Individual account in collections.

Both are obviously bad, but I would receive an I-9 if I did not pay a penny. I don't feel I should receive this notation since I have paid it off. I have talked to the company and they told me that since it was in collections the account was considered a charge off. The will not budge on changing it.

Oh well, the whole thing will be off my credit report in 4 years anyway and I will not need any loans between now and then, since I just purchased a home. It is just that I am in the process of trying to repair my credit report and it is very frustrating trying to get accounts that have been closed for years to reflect that they are closed in the report.

Enough ranting. On a positive note, I just sent my check to Sears to pay them off. Once I receive a zero balance statement I will close that account. Next month, I will pay off my MBNA card, I plan to pay off my truck in May and my fiancee's Jeep in 2002. The snowballing method I learned on this board is working much faster than I anticipated. I and my fiancee hope to have only the mortgage/utilities to pay by June 2002.

Thanks for all the support and advice on this board...

Fool On!!
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Author: dollarbill65 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53518 of 308557
Subject: Re: Paid Charge Off Rant Date: 1/9/2001 12:28 PM
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<Both are obviously bad, but I would receive an I-9 if I did not pay a penny. I don't feel I should receive this notation since I have paid it off. I have talked to the company
and they told me that since it was in collections the account was considered a charge off. The will not budge on changing it. >

I agree with this completely. Once a charged off account is paid then paid is all the creditor should report to the agencies, especially if it has been off fairly quickly and with large sums. This fulfills your obligation to them in full. I think that many of these rules and laws work unfairly against the consumer and should be changed. Paid accounts should not be penalized with such derogatory data as an I-9.

Like you I have a charged off account that I am paying off fairly fast. But I go back and forth some times about whether it's worth it do if this derogatory data will remain in my file for x number of years and affect everything from apartment rentals to opening up new savings accounts even after it has been paid off!

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Author: nomorecards Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53520 of 308557
Subject: Re: Paid Charge Off Rant Date: 1/9/2001 12:42 PM
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"Like you I have a charged off account that I am paying off fairly fast. But I go back and forth some times about whether it's worth it do if this derogatory data will remain in my file for x number of years and affect everything from apartment rentals to opening up new savings accounts even after it has been paid off! "

dollarbill65,
It may seem like it's not worth the trouble of paying it off But, think about this....

The only thing that will secure a mortgageor any future is the bottom line which is a "0" balance
make a deal with the creditor that if you want my money then I want it reported as a paid charge off...

My 2 cents FWIW
and remember free advice worth every penny!

nomorecards!




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Author: EditorialWe Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53575 of 308557
Subject: Re: Paid Charge Off Rant Date: 1/9/2001 6:08 PM
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I think the confusion arises when we talk about being 'in collections.'

Sometimes, this means that a company has transferred your debt to an in-house collections department. Or, it could mean that a company has sold your debt to a collection agency. Once that has happened, the original lender does not 'own' that debt any more. Whether or not it is paid off in the future is not a concern to them.

The debt collection agency buys these debts at a discount in the hope that they, with their lovely, more-aggressive tactics, will be able to collect some portion of what is owed. Legally, they are now your creditor and you must deal with them and not the original creditor.

I am not completely certain of the implications of this for your credit report, but if the original creditor regards selling your account as a 'charge-off', then nothing you subsequently do to pay the account will affect how the original creditor reports it. The original creditor has, in effect, washed its hands of you. I would check with the original creditor to make sure about this, though, as I'm just guessing.

EditorialWe

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Author: Guppy738 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53628 of 308557
Subject: Re: Paid Charge Off Rant Date: 1/10/2001 9:49 AM
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The collections were actually a deptartment of the company, so they did not sell my debt to a collections agency. I would be more understanding of the report if this had happened.

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