Settling/Paying a charge off after SOL?

[themrbuns]

Good Morning, Newbie here.. Found this site last night, and have been reading for hours trying to gather all the information I need. Lot's of good info, very overwhelming I may add. lol

 

Here's my situation, hoping someone can help.

I've got two CC that are CO. One being with Capital one, who still holds the account. And the other with FFBUSA who have since sold it to a Debt Collector. I'm in the process of rebuiling my credit. Both account show that they will be removed from my credit in Dec 2015.. (almost there) I originally convinced myself I would just wait and wait and wait until they disappear, but now that i'm older it's a lot harder to deal with. (buying cars, homes, being approved to rent, being approved for CC, etc)

 

So I get fed up.. For months I've been disputing some of my accounts, and have successfully been able to delete or update certain items. BUT decided to pay some of my bad debt, starting off with dilenquent accounts and starting with the lowest account of $25. I spoke with a Debt collector about a pay for delete on this account but they wouldn't do it. They told me if i paid it would show paid satified, and I thought that would be a positive outcome.. Little did I know it surely wasn't. I paid this $25 account and my score dropped 11 pts. With that being said I'm nervous to start paying other delinquent accounts because I don't want my score to drop..

 

My main question is - The account I have with Capital one is what i'm working on currently. I spoke to them on the phone, again asking for a pay for delete and they denied, but I was able ot get a settlement from $3265 down to $1399 for 3 payments, and then even $1200 if paid in full. Now

 

(1) will paying this account have a negative effect on my credit report because it will show PAID/CLOSED?

 

(2) Because I already spoke about a settlement, and demanded them to mail me the settlement offer, does that restart the SOL (It's a Florida account that became delinquent in June 2008, however I now live in CA)?

 

(3) Will I be able to go back on my word to settle the debt, now knowing about SOL and it being after the 4 years, or does SOL restart, and then they have the ability to sue If I don't pay??

 

(4) And finally, Do i have the upper hand here if I explain to them that I no longer am entitled to pay them since it's after the SOL. And try and settle at the $1200 ONLY if they all for a Pay to Delete??

 

Sorry so many questions... I'm supposed to call them today.. Someone PLEASE shed light on this for me.. I have no idea what to do, and I don't want to screw this up anymore..

Thanks in advance....

 

 

[themrbuns]

**bump**

 

Recent update!! It now shows on my report as charged off FEB 2013.. Originally SEPT 2008. Is this bad? I feel as though if i'm applying for credit or someone see's my report they will show a recent CO??

Thanks in advance

[themrbuns]

bump

[ICANHASMUNY?]

a payment on an account in California will not restart the SOL.

 

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=ccp&group=00001-01000&file=350-363

 

have any agreement with Crap one in writing

 

crap one witl never settle for less and if they do, they will mark it so on you credit report - which is just as bad as a collection

 

thier CSR's are not to be trusted.

 

in florida, Crap one SOL is three years becuase in Florida the choice of law of Virgina in the card agreemenet rules the day.

 

Florida borrows Virgina's 3 year SOL

 

but that card agreement was subsequently changed in 2011,

[mrsobrien]

This is an interesting question, I'm eager to read more replies! I also have a CO that will be falling off in about a year. I do want to settle it, but I don't want to restart the reporting clock! Advice for me will be appreciated as well. Good luck!

[themrbuns]

Thank you for the response. I have yet to call them back because I didn't know what to do.

 

Since the SOL is 3 years not 4 (it's definitely 3 years since last late payment) should I call/write a letter stating so? I tried to argue with them the SOL originally but they didn't seem to understand what I was talking about, and kept repeating that it will fall off after 7 years.

 

PFD it out of the question with this CRAP ONE. People. Can I call the CRA and argue my rights with them?

HELP!! What should I do. Where do I stand at this point.

 

Thank you credit gods

[12punch]

Did you have any luck with crap one? Im in the same boat..

[jflora80]

• Everything I have read shows that paying off old CO will hurt your present day score by a little but will help for the future.

[LKH]

This is an interesting question, I'm eager to read more replies! I also have a CO that will be falling off in about a year. I do want to settle it, but I don't want to restart the reporting clock! Advice for me will be appreciated as well. Good luck!

 

Paying a collection or charge off can NEVER reset the reporting time limit.

[themrbuns]

Did you have any luck with crap one? Im in the same boat..

Nope no luck as of yet.. They ABSOLUTELY will not agree to a charge off.. And they are now saying if I don't settle for the 1200 I verbally agreed on they will send me a 1099. But since I now know the SOL is 3 years for florida I will write them a letter stating that, and tell them I am not liable to have to pay anymore. Hopefully this helps.

[ICANHASMUNY?]

wont 'agree to a charge off? I think you mean a PFD.

 

and paying them less than the full amount at this stage isn't going to help - they just report it as settled for less than the full amount, and it's just as bad a collection.

[themrbuns]

Yes, sorry that's what I meant. They won't agree to a PFD.. Should I just bite the bullet and take the hit with the 1099? I haven't ever been sent one before. And should I still write them in regards to the SOL?

Thanks again for help

[ICANHASMUNY?]

I would just cease communicating with them. unless they are actively calling you.

[SteveinWa]

I had a CA send a 1099 in on me, and I had no idea about it until the IRS contacted me to say that I owed an additional $250 for the taxes on this 1099.

 

I wondered at the time if I should dispute the 1099 with the IRS, or even if I had the right to.

 

Anyone know the rules on them being able to issue a 1099?

[ICANHASMUNY?]

all sorts of posts on that here, on google.

 

yes you can fight it out depending on who and when the 1099C was issued.

[themrbuns]

I would just cease communicating with them. unless they are actively calling you.

Yes, they are calling me now that I had suggested a settlement... Now that you mentioned florida borrows virginias 3 year SOL, should I return the call and explain that to them? How can I convince CAP1 to either stop reporting, or stop harassing? The harassing really never bothered me before, just the hit on my credit. BTW it's suppose to clear off DEC 2015. Thanks again for the help

[mrdoon]

A few things to keep in mind...

• Either settlement offer you mention ($1399 for 3 payments or $1200 for a single payment) results in a write-off of more than $600 so they're going to issue the 1099-C regardless.
• If they issue you a 1099-C, don't ignore it as the IRS will also receive a copy. Look at the other forums about how to deal with a 1099-C - the best option is to show that you were insolvent immediately prior to the discharge. (Do a Google search for IRS Form 982.)
• The 1099-C is not avoided because the debt is past the SOL. The SOL just means that they have limited options for collecting the debt - they can call and write you letters (unless you ask them in writing to stop) but cannot sue you. If they do sue you, you can raise the SOL in court as your defense.
• The date on your credit report is probably the date of last activity - not the date of first default. The date of first default is the one that is important in determining if the debt is past SOL.
• If you want to stop the phone calls, you can send them a limited cease communications letter stating that all calls are inconvenient and that they are only to communicate with you via USPS. This way, you don't shut down all communications but you don't have to deal with the phone calls.

Check out this site for more helpful info: http://www.consumer.ftc.gov/topics/money-credit

 

By the way, just in case they want to claim Florida jurisdiction, a payment should not restart the clock in Florida either - state law requires a written agreement.

Edited March 11, 2013 by mrdoon