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Should I just payoff Credit One CO?????

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Need advice on what I should do.

 

Account opened 2/16 delinquent 5/16 

 

I ordered my hard copies of all reports and I just noticed they have been recently doing soft pulls 😒 Those pulls were probably triggered by my disputes. I live in GA so I'm still within the SOL. What my concern is that they will sell it off to a collection agency and then I'll have that ding on my credit as well. I only have one collection and its on TU from a company that's trying to collect on a 2018 ATT bill that I'm in the process of doing the 1-2 punch on. So I definitely don't want a new collection added.

 

The limit was small, only $300 but of course it's showing like $604. So, should I just contact them and try to settle for pennies with a PFD at best or settle for a little more with one less stress about new collection at worst?   

 

Or is there something else that I may want to consider? I have already disputed this account once and EQ is redisputing (I won't make a move until they finish their dispute) while TU updated it to show "charged off as bad debt purchased by another lender" 

 

Thanks for any guidance you can give with this, its greatly appreciated! 

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Who is the entity in question that you defaulted upon?  What other collection activities have occurred across the past four years? 

 

It is a hugely held misnomer that entities will always settle for "pennies" much less that they will engage in an agreement to delete upon payment.  This is why the entity in question becomes so essential to these sorts of discussions, because there ARE some entities that you can swing a deal with while others have zero compunction about kicking the can down the street and selling the account (meanwhile taking advantage of the tax write-down for the full amount). 

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58 minutes ago, centex said:

Who is the entity in question that you defaulted upon?  What other collection activities have occurred across the past four years? 

 

It is a hugely held misnomer that entities will always settle for "pennies" much less that they will engage in an agreement to delete upon payment.  This is why the entity in question becomes so essential to these sorts of discussions, because there ARE some entities that you can swing a deal with while others have zero compunction about kicking the can down the street and selling the account (meanwhile taking advantage of the tax write-down for the full amount). 

It was a credit card for Credit One - i don't have any correspondences from them and Im assuming thats because they dont have my current address and I hadnt lived at that address since 2016.

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3 hours ago, Theirmomma said:

What my concern is that they will sell it off to a collection agency and then I'll have that ding on my credit as well.

If TU said this:  "TU updated it to show "charged off as bad debt purchased by another lender" 

then it has already been sold to a JDB.  Credit One is owned by the Sherman Group. They typically sell their debts to either LVNV (also owned by the Sherman Group) or Midland.

 

Most likely they are not reporting yet because they are gearing up to sue you and want to eliminate the chance of a counter claim.

3 hours ago, Theirmomma said:

The limit was small, only $300 but of course it's showing like $604.

They charge almost 30% interest.  Add on late fees and over the limit fees for 6 months from default to charge off and the balance easily doubles.

3 hours ago, Theirmomma said:

I have already disputed this account once

BIG mistake to dispute this when the SOL was very much alive.  You most likely woke a sleeping bear and will be facing a collection suit.

3 hours ago, Theirmomma said:

Or is there something else that I may want to consider?

Watch the Magistrate Court docket in your county.  Most are on line.  They will sue you.  If you can settle BEFORE they sue your chances of getting a better number are higher.  Once they sue they know GA is a creditor friendly state and they will easily get a judgment.  Your chances of a lower number are better if you have a lump sum amount.  Get ALL terms in writing before paying.  ANYTHING promised verbally cannot be enforced.

 

Credit One has a carve out for small claims debt cases and arbitration.  Magistrate Court in GA IS small claims.  You will not be able to use the arbitration strategy to defeat the suit once it is filed.

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2 hours ago, CreditSucksNot said:

If TU said this:  "TU updated it to show "charged off as bad debt purchased by another lender" 

then it has already been sold to a JDB.  Credit One is owned by the Sherman Group. They typically sell their debts to either LVNV (also owned by the Sherman Group) or Midland.

 

Most likely they are not reporting yet because they are gearing up to sue you and want to eliminate the chance of a counter claim.

They charge almost 30% interest.  Add on late fees and over the limit fees for 6 months from default to charge off and the balance easily doubles.

BIG mistake to dispute this when the SOL was very much alive.  You most likely woke a sleeping bear and will be facing a collection suit.

Watch the Magistrate Court docket in your county.  Most are on line.  They will sue you.  If you can settle BEFORE they sue your chances of getting a better number are higher.  Once they sue they know GA is a creditor friendly state and they will easily get a judgment.  Your chances of a lower number are better if you have a lump sum amount.  Get ALL terms in writing before paying.  ANYTHING promised verbally cannot be enforced.

 

Credit One has a carve out for small claims debt cases and arbitration.  Magistrate Court in GA IS small claims.  You will not be able to use the arbitration strategy to defeat the suit once it is filed.

Thanks so much for the feedback.

 

I was being lazy and let someone do this for me... I should have known better 😢

 

Now that I have more free time I've decided its best to fix my credit myself. 

 

I'm on hold with them now trying to see if I can get them to settle this. 

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16 hours ago, Theirmomma said:

I'm on hold with them now trying to see if I can get them to settle this. 

Front-line phone jockeys generally lack the ability to resolve matters via settlement.  As such, I hope you are actually on hold for someone in the Executive Offices...but the offer would have been better to be made IN WRITING and then sent to the address appearing in the various corporate filings (NOT a post office box).  The written offer allows one to spell out the terms and forms a basis upon which actual negotiations may be had.

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