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Creditors Removing Charge Off — What to Get in Writing

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I’m dealing with an older Ally Financial charge off. After speaking with a dozen reps, I emailed a higher up. Today, I received a call from a manager — he said that they were willing to accept 40% of the charges off amount, and they would update the trade line as paid in full, and remove any reporting of the charge off status.

 

I asked the manager if he would provide it in writing, and he agreed. 

 

I have to wait at least 24 hours before a payment can be accepted because the account has to be updated internally. I’m not going to pay it without a written agreement. What points ex’s rly should the written agreement state?

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You need writing from dirty CAs. With a OC you're asking for a favor. Anything in writing is a bonus. But you would never send that letter to a CRA, it would only be useful to email and even further higher up later if it's not removed. 

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58 minutes ago, shifter said:

You need writing from dirty CAs. With a OC you're asking for a favor. Anything in writing is a bonus. But you would never send that letter to a CRA, it would only be useful to email and even further higher up later if it's not removed. 

The OC is the only one reporting the account. They’ve agreed to report the account as paid - satisfactory, so stop reporting as charged off. They agreed to provide me something in writing prior to me sending them a payment— I’m asking what exactly should be included in the written agreement?

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make sure it says they will delete from all consumer credit depositories and NOT sell any remainder AND not issue a 1099.

 

and by older do you mean it is out of SOL?

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5 hours ago, hegemony said:

make sure it says they will delete from all consumer credit depositories and NOT sell any remainder AND not issue a 1099.

 

and by older do you mean it is out of SOL?

No, it’s still within the SOL. I plan on adding some verbiage regarding not being able to sue me, anything else specific I should include?

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13 hours ago, seanote said:

I’m dealing with an older Ally Financial charge off. After speaking with a dozen reps, I emailed a higher up. Today, I received a call from a manager — he said that they were willing to accept 40% of the charges off amount, and they would update the trade line as paid in full, and remove any reporting of the charge off status.

 

I asked the manager if he would provide it in writing, and he agreed. 

 

 

The "gold standard" in such an agreement is "pay for delete" ... the issuer agrees to delete the tradeline in exchange for the promised payment.

 

In your case, I'm not 100% confident I understand what is being promised.  Taken at face value, the "charge off" notation may be removed, but other earlier delinquency notations may remain in place.  This means that tradeline continues to report adverse information with a continue credit score hit.

 

I advise posting back the specific verbiage of the agreement once it's received for direct comment.

 

(I'll chime in with @shifter and confirm his observation that the letter isn't beneficial as a means to enforce the tradeline adjustment by submitting it as a document to the CRA's.  By subscriber agreement, CRA's require that tradelines reflect actual credit history.  While a creditor may agree to a "goodwill" adjustment, the CRA's will never enforce such an agreement.  In fact, submission of such a document to the CRA's can "cement" the adverse information to your credit file.

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