7 CC Chargeoffs - How to approach?

[Norcal1916]

In my second year of graduate school, I let seven credit cards charge off. The charge off dates are all between April and June 2013. I had no income at the time other than student loans and, with everything on my plate, I let them go without much thought to the consequences. I'm now done with school and will finally have an income for the first time in three years starting in mid-September. All of my loans are in good standing as well as nine other revolving accounts with low utilizations and low limits (six of those opened since May 2014).

 

I would appreciate advice on how to approach these charged off accounts. Two of them have since been sold to JDB's, but only one has appeared on my credit report with a collection agency (HSBC account sold to The Bureaus/Stoneleigh Recovery). The other five are still reporting balances with the OCs. I have not spoken with any of the original creditors or collection agencies.

 

My accounts are as follows:

 

B of A: ~ $2500 C/O 6/2013

Collection Agency: Client Services, Inc.

 

B of A: ~ $2500 C/O 6/2013

Collection Agency: Client Services, Inc.

 

Chase: ~$3500 C/O 6/2013

Collection Agency: United Collection Bureau

 

Citicards: ~$2600 C/O 7/2013

Collection Agency: Global Credit Collection

 

Citicards: ~$3400 C/O 6/2013

Collection Agency: Northland Group

 

HSBC: ~$3000 (original), now $3100 C/O 6/2013

HSBC Reporting $0 balance

Collection agency: Stoneleigh Recovery Associates

Current Creditor: The Bureaus (reporting to CRAs) since 6/2013

 

Wells Fargo - $1600 C/O 6/2013

Reporting $0 balance

Collection Agency: Portfolio Recovery Associates

 

Due to the ethical requirements of my profession, I cannot leave these accounts unpaid and on my credit reports without settling them or, preferably, having them removed entirely. How would you recommend I proceed with these?

 

Other info: TU and Experian Ficos are 615 and 610, respectively.

 

Thanks in advance for any advice!

 

 

[Grnbeano]

Damn..

 

Why did you burn up all these credit lines ?

 

You have 7-1o awaiting you and collection calls coming.

[Grnbeano]

Portfolio will burn you down unless you settle with them.

 

There is a trick, but you must pay your dues first ..

[Grnbeano]

Advice:

 

Talk to the ORIGINALS First, get it handled FAST

[Grnbeano]

You need to "Especially" deal with Citi

[Norcal1916]

Damn..

 

Why did you burn up all these credit lines ?

 

You have 7-1o awaiting you and collection calls coming.

 

I really had no income at all at the time. My student loans covered only housing, food, and a little extra. When I let them go, I was paying ~$500-600/month in minimums and I just couldn't keep it up.

 

What do you mean by 7-10 coming?

 

The collection calls have stopped for the most part. I received a lot when I originally let the accounts fall behind, but I haven't received many at all in the past six months.

Portfolio will burn you down unless you settle with them.

 

There is a trick, but you must pay your dues first ..

 

Could you elaborate?

[Norcal1916]

You need to "Especially" deal with Citi

 

Because they are particularly litigious? Both Global and Northland have been sending me settlement offers for the last six months and I've read that they will both settle for relatively low % of the amount owed. I just haven't had the money to accept these offers and I will not for another month or two.

[Grnbeano]

Once these accounts go 180 days late, they get charged off as bad debt.

 

Thus the 7 to 10 year "clock" starts to get them settled or perhaps removed.

 

You need to call all the original creditors and work out a payment arrangement. Just call them. I am 46 now and have perfect credit after only going through the spending binge, or whatever.

 

You do not need the "debt buyers" harassing you over "open" accounts accruing interest.

[FromGoodtoGreat]

In my second year of graduate school, I let seven credit cards charge off. The charge off dates are all between April and June 2013. I had no income at the time other than student loans and, with everything on my plate, I let them go without much thought to the consequences. I'm now done with school and will finally have an income for the first time in three years starting in mid-September. All of my loans are in good standing as well as nine other revolving accounts with low utilizations and low limits (six of those opened since May 2014).

 

I would appreciate advice on how to approach these charged off accounts. Two of them have since been sold to JDB's, but only one has appeared on my credit report with a collection agency (HSBC account sold to The Bureaus/Stoneleigh Recovery). The other five are still reporting balances with the OCs. I have not spoken with any of the original creditors or collection agencies.

 

My accounts are as follows:

 

B of A: ~ $2500 C/O 6/2013

Collection Agency: Client Services, Inc.

 

B of A: ~ $2500 C/O 6/2013

Collection Agency: Client Services, Inc.

 

Chase: ~$3500 C/O 6/2013

Collection Agency: United Collection Bureau

 

Citicards: ~$2600 C/O 7/2013

Collection Agency: Global Credit Collection

 

Citicards: ~$3400 C/O 6/2013

Collection Agency: Northland Group

 

HSBC: ~$3000 (original), now $3100 C/O 6/2013

HSBC Reporting $0 balance

Collection agency: Stoneleigh Recovery Associates

Current Creditor: The Bureaus (reporting to CRAs) since 6/2013

 

Wells Fargo - $1600 C/O 6/2013

Reporting $0 balance

Collection Agency: Portfolio Recovery Associates

 

Due to the ethical requirements of my profession, I cannot leave these accounts unpaid and on my credit reports without settling them or, preferably, having them removed entirely. How would you recommend I proceed with these?

 

Other info: TU and Experian Ficos are 615 and 610, respectively.

 

Thanks in advance for any advice!

 

 

It is more than likely too late to deal with the OC's directly since they have been sold to CA's. I would still try and see if they can pull it back from the CA if you pay them directly. Long shot at best.

 

Take a look at this thread that was started by Mendelsohnn for the HSBC TL

http://creditboards.com/forums/index.php?showtopic=532427&hl=%2Bhsbc+%2Bremoved

 

If you deal with the CA's you need to negotiate PFD's if you are going to pay them. By you still owing the debt you do have some sort of bargaining leverage. You need to be decisive and request what you want when you deal with them. Be very careful because you are still within the SOL on these.

[Grnbeano]

Careful walk indeed..

[Grnbeano]

He will be for some time.. Get the original Creditors to examine your account issues, maybe retract their charge-off to the bottom feeders, make payment arrangement(s)

[Norcal1916]

FromBadToGood: I don't believe all of my accounts have been sold to the CA's.

 

Maybe, though, I do not understand the difference between accounts which have been sold to CAs and accounts which are using CAs to recover their debts. My understanding is that only two of my accounts (HSBC and Wells Fargo) have been sold to CA's -- the others are still reporting balances from the original creditors and some of their letters state that I should make payment to Citi/Bank of America, etc.

 

If I write to say, Global, and offer a PFD on my Citi account, will that remove the charge off notation from Citi? Global is not showing on my credit reports anywhere. For that matter, neither is Client Services, United Collection Bureau, Northland, or Portfolio Recovery. My DOFDs on these accounts were between August - December 2012.

[FromGoodtoGreat]

He will be for some time.. Get the original Creditors to examine your account issues, maybe retract their charge-off to the bottom feeders, make payment arrangement(s)

^^ This has worked for me. I had for chargeoffs removed by dealing with the OC's.

[FromGoodtoGreat]

FromBadToGood: I don't believe all of my accounts have been sold to the CA's.

 

Maybe, though, I do not understand the difference between accounts which have been sold to CAs and accounts which are using CAs to recover their debts. My understanding is that only two of my accounts (HSBC and Wells Fargo) have been sold to CA's -- the others are still reporting balances from the original creditors and some of their letters state that I should make payment to Citi/Bank of America, etc.

 

If I write to say, Global, and offer a PFD on my Citi account, will that remove the charge off notation from Citi? Global is not showing on my credit reports anywhere. For that matter, neither is Client Services, United Collection Bureau, Northland, or Portfolio Recovery. My DOFDs on these accounts were between August - December 2012.

Then it sounds like they are 3rd party collectors for the OC's. Just make sure they do not put a collection TL on your reports. I had to deal with United Recovery Systems for Capital One on my wife's report and I got it in writing.

[Grnbeano]

Tread lightly, let me know within a month what shows on your CRA's.

 

 

I still would refer to OC if you have income coming in.

 

 

You will thank me later ..

[Norcal1916]

 

FromBadToGood: I don't believe all of my accounts have been sold to the CA's.

 

Maybe, though, I do not understand the difference between accounts which have been sold to CAs and accounts which are using CAs to recover their debts. My understanding is that only two of my accounts (HSBC and Wells Fargo) have been sold to CA's -- the others are still reporting balances from the original creditors and some of their letters state that I should make payment to Citi/Bank of America, etc.

 

If I write to say, Global, and offer a PFD on my Citi account, will that remove the charge off notation from Citi? Global is not showing on my credit reports anywhere. For that matter, neither is Client Services, United Collection Bureau, Northland, or Portfolio Recovery. My DOFDs on these accounts were between August - December 2012.

Then it sounds like they are 3rd party collectors for the OC's. Just make sure they do not put a collection TL on your reports. I had to deal with United Recovery Systems for Capital One on my wife's report and I got it in writing.

 

 

So in that case, should I still deal directly with the OCs or with the third party (TP) collectors? Which is more likely to offer the better settlement or PFD? (I know this question is asking for a crystal ball, but I mean generally). Does a TP collector even have the authority to remove an OC's charge off notation?

[FromGoodtoGreat]

 

 

FromBadToGood: I don't believe all of my accounts have been sold to the CA's.

 

Maybe, though, I do not understand the difference between accounts which have been sold to CAs and accounts which are using CAs to recover their debts. My understanding is that only two of my accounts (HSBC and Wells Fargo) have been sold to CA's -- the others are still reporting balances from the original creditors and some of their letters state that I should make payment to Citi/Bank of America, etc.

 

If I write to say, Global, and offer a PFD on my Citi account, will that remove the charge off notation from Citi? Global is not showing on my credit reports anywhere. For that matter, neither is Client Services, United Collection Bureau, Northland, or Portfolio Recovery. My DOFDs on these accounts were between August - December 2012.

Then it sounds like they are 3rd party collectors for the OC's. Just make sure they do not put a collection TL on your reports. I had to deal with United Recovery Systems for Capital One on my wife's report and I got it in writing.

 

 

So in that case, should I still deal directly with the OCs or with the third party (TP) collectors? OC if you can. Which is more likely to offer the better settlement or PFD? OC may do a PFD, not likely. The CA will take a settlement for less. (I know this question is asking for a crystal ball, but I mean generally). Does a TP collector even have the authority to remove an OC's charge off notation? NO!

 

[nysbadmk8]

Start by calling all your past creditors and seeing if the debt can be recalled from the CA's

 

If Not, start calling/Writing Ca's and getting PFD's lined up...

 

Read all the information available to you on this board. Credit repair is LONG term, you wont be able to solve these in 3 days/weeks/months...

[Norcal1916]

Start by calling all your past creditors and seeing if the debt can be recalled from the CA's

 

If Not, start calling/Writing Ca's and getting PFD's lined up...

 

Read all the information available to you on this board. Credit repair is LONG term, you wont be able to solve these in 3 days/weeks/months...

 

Would I do a PFD even if the third party collector hasn't reported to the credit bureaus?

[nysbadmk8]

 

Start by calling all your past creditors and seeing if the debt can be recalled from the CA's

 

If Not, start calling/Writing Ca's and getting PFD's lined up...

 

Read all the information available to you on this board. Credit repair is LONG term, you wont be able to solve these in 3 days/weeks/months...

 

Would I do a PFD even if the third party collector hasn't reported to the credit bureaus?

 

 

Thats a tricky question... I will say yes for now.. Since they *can* report it, and they *can* sell it.

 

But if you catch it before it hits your reports, you have a great chance of keeping it off your reports.

 

The C/O's are going to be your hardest nut to crack. But It can be done.

[Norcal1916]

Update:

 

I have now settled three of the accounts: 2 Citi cards and 1 Chase card.

 

The Wells Fargo account is now with Portfolio Recovery, but I haven't heard much from them (possibly because my credit profile is so bad).

 

The settlements haven't shown up on my reports yet and I'm wondering what my next steps should be. The two BofA accounts are now with Global Collection, which was willing to settle one of my Citi accounts for very little.

 

The HSBC account is now with The Bureaus, which I haven't heard much from but I can see they are tacking on interest pretty quickly.

 

So I have four outstanding charge offs: the two BofA accounts are with Global and they are not listed as a collection on my credit reports. (Global didn't report the Citi account with the CRAs either). WF and HSBC have reported as in collections.

 

What is my next step? The two BofAs?

 

 

 

 

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[Norcal1916]

Anyone?

 

 

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[tobettercredit]

Call/write to bank of America, let them know you want to settle with them. Explain your circumstances but do no beg. If you're not in a rush to increase your Fico scores for mortgage or car loan, take some time to fix your credit report(by settling with OCs, not CAs or JDBs). Once that's done you'll learn here some things you need to do to increase Fico fast.

 

I have a charge-off with Citi and Global sent me letters many times but I chose not to respond due to SOL. Now I've sent a 623 to Citi. If it does not delete from my CR, my next move if to settle (maybe through Global) since no JDB has ruined my credit over that debt. As long as there is a chance to settle with OC, please seize it.

 

How did you specifically settle with Citi? Through Global?

 

As I said I am trying to do the same thing with Citi( the only one of my 4 charge-offs still showing a balance.) Global did not appear on my CR either.

 

The Bureaus will eventually sale the account to another CA. They did just that with my HSBC Charge-off. If HSBC is showing zero balance, wait for the dunning letter from the CAs(Bureaus or another). At that time you will deal with the situation before the Collection tradeline is inserted to your credit report by the collection agency. There are many threads here that address that situation.

[Norcal1916]

I settled one Citi account through Global and one through Northland.

 

What about Portfolio?

 

Unfortunately, I am in a bit of a rush to deal with these because I need to have all unpaid debts settled/paid for a certain clearance.

 

 

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[tobettercredit]

Wells Fargo - $1600 C/O 6/2013

Reporting $0 balance

Collection Agency: Portfolio Recovery Associates

 

Ok, it looks like WF sold your account to Portfolio. So Portfolio is here a JDB, not really a CA. Call/write to them(better). Study here how you can craft a settlement letter offering 25 to 35 cents on the dollar. Your goal is not to pay more than 50 cents. Try PFD. If that does not work, go for Paid in Full/in Settlement. That will suit your purpose for now. Later you may try to delete by disputing/ D.V'ing when trying to increase score.