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A friend was able to rehab and once they paid off the balance they got their account restored with a spend limit.

I got the same notice and it said to call CS to opt out of the review.

There are two types of collections: 1) the original creditor assigns the debt for collection to an agency and 2) the original creditor sells the debt to a JDB. Either way you send a debt validation letter and they have to respond. The main issue with your relatives is they have this debt they need to figure out how to take care of before it gets worse. You can negociate a settlement and payment terms or file a BK. Leaving it alone and risking a lawsuit is only going to make things worse.

You don't have to be the original creditor to validate the debt.

I would call and ask them to either reinstate your account or offer you the Optima Account. If they reject your request you can apply for a new account. As long as you paid them in full (and there records are updated to reflect that) and your credit has improved, chances are you would be approved. Doesn't hurt to apply since its a SP for denials. They key is to make sure their records are updated to reflect the payoff.

Yup. I believe she was in on the scam from the start.

Depending on what state you live in you can get your record expunged after 5-7 years.

Have you looked into a non profit debt management plan (DMP). They can consolidate your payments and have your interest rate reduced to zero, in most cases. It also has little impact on your credit. https://www.nfcc.org/resources/debt-management-plans/

I would contact EO (Executive Office) and let them know your situation. I think this is something they can help resolve. Also, if your account was pre charge off, they should have offered you reinstatement of your account.

Here is a link with more specifics regarding late payments during CV19: https://www.nolo.com/legal-encyclopedia/credit-protections-under-the-coronavirus-cares-act.html

I was told Amex's BK policy is 5 years and 1 month from the filing date if Amex was not included in the BK.

It's been my experience with Experian that it will automatically delete around the time of the estimated date listed. I recommend calling the dispute department directly to see when an item can be removed. 95% of the time I called, they have been helpful. The other 5%, I HUCA. TU will delete up to 6 months early. I would call and the rep will file the dispute and their back office will take care of the rest.

FYI- Portfolio Recovery is one of the collection agencies that will automatically delete once you pay/settle the collections.

Citibank makes you wait 2 years from filing date before they will approve you for a secured card.

I called about the extended wait time and they told me when you generate an ACH from the Amex side it takes and additional 4-5 days to release those funds.