Jump to content

I have these 6 Charge Offs, Settle vs PIF before I get their CA's?


Recommended Posts

I have the following charge offs  fairly recent under 2 years ago lost job and some due to covid:

 

US BANK  $2385 

KOHL $369

DISCOVER $293

 

Then I have these that are charged off with a zero balance that I DID NOT pay. Does this mean the debt was sold?

Indigo  

Fingerhut 

 

I also have a First Premier from 2014  for $545

 

Do I settle or pay in full? Also will I be black listed? Should I take care of this before  I get collection accounts? None of these accounts are associated with a CA on my report.

 

Trying to rebuild my credit! Thank you

 

 

 

Link to post
Share on other sites

Arguably the two main reasons to pay/settle are to prevent being sued and to prevent a second negative TL (CA/JDB) for each of the same accounts from landing on  your reports and making it even harder to get new credit.

 

Do you have the means to settle the freshest ones without putting some other financial aspect of your life at risk?

 

Also, please look at this objectively.  The root cause of these charge-offs isn't losing a job or covid, it's insufficient savings relative to what was being spent (and presumably revolved). 

 

I'm not moralizing; I'm trying to shine the light on a prevention plan for the future, and wish you good luck.  :)  

Link to post
Share on other sites

US BANK  $2385 

KOHL $369

DISCOVER $293

 

All three have arbitration. It will cost you $600 to file 3 cases, but highly unlikely they will arbitrate because the cost is five times what they can get if they win.

 

Then I have these that are charged off with a zero balance that I DID NOT pay. Does this mean the debt was sold?

Indigo  

Fingerhut 

 

Yes. They have arbitration, no JDB will pay 6K to chase small amounts.

 

I also have a First Premier from 2014  for $545

 

That one is beyond the statute of limitations in Michigan.

Link to post
Share on other sites
6 hours ago, cv91915 said:

Arguably the two main reasons to pay/settle are to prevent being sued and to prevent a second negative TL (CA/JDB) for each of the same accounts from landing on  your reports and making it even harder to get new credit.

 

Do you have the means to settle the freshest ones without putting some other financial aspect of your life at risk?

 

Also, please look at this objectively.  The root cause of these charge-offs isn't losing a job or covid, it's insufficient savings relative to what was being spent (and presumably revolved). 

 

I'm not moralizing; I'm trying to shine the light on a prevention plan for the future, and wish you good luck.  :)  

I tried my best honestly. The last thing I wanted was to bomb my credit. Thanks for your input.  

Link to post
Share on other sites
4 hours ago, legaleagle2012 said:

US BANK  $2385 

KOHL $369

DISCOVER $293

 

All three have arbitration. It will cost you $600 to file 3 cases, but highly unlikely they will arbitrate because the cost is five times what they can get if they win.

 

Then I have these that are charged off with a zero balance that I DID NOT pay. Does this mean the debt was sold?

Indigo  

Fingerhut 

 

Yes. They have arbitration, no JDB will pay 6K to chase small amounts.

 

I also have a First Premier from 2014  for $545

 

That one is beyond the statute of limitations in Michigan.

Should I try to settle or pay in full ?  Thank you. 

Link to post
Share on other sites
6 hours ago, Help1285 said:

I tried my best honestly. The last thing I wanted was to bomb my credit. Thanks for your input.  

 

Completely get it, and like I said, I wasn't moralizing... but rather trying to redirect the analysis to the actual root cause. 

 

If it makes you feel any better, the root cause of what led me to find CB was reckless disorganization and complete apathy.  In other words, I invented my own problems.  :)  

Link to post
Share on other sites

FP is a turd that likely comes off with early exclusion at this point given your claim that the delinquency dates to 2014.

 

Kohls likely does not issue their own card, so you need to determine which bank DID underwrite the account.  If they still report a balance and recently updated, then they still own the paper.  If they have not reported in several years, the situation changes somewhat...

 

Discover is not something you should expect a discount on but for that amount, pay it and be done with it. 

 

US Skank will also not be one that is apt to discount but they DO blacklist.  Sadly, they have the Elan unit that underwrites a lot of other products, which means a Skank blacklist could keep you from a lot of other cards.

 

I have no idea who Indigo is but the reporting of a zero balance with them and Fingerslut, yes both have probably been sold.  A tailored letter to the entity currently collecting should help with closing the matter and getting any third-party off of the reports.

 

And, BTW...who cares if you get blacklisted by a turd.  You NEVER want FP or other subprime offering again to begin with...but turds usually don't blacklist.  They make their money on the fees they gouge those who get a turd, walk it and keep coming back to pay more fees. 

Link to post
Share on other sites
10 hours ago, centex said:

FP is a turd that likely comes off with early exclusion at this point given your claim that the delinquency dates to 2014.

 

Kohls likely does not issue their own card, so you need to determine which bank DID underwrite the account.  If they still report a balance and recently updated, then they still own the paper.  If they have not reported in several years, the situation changes somewhat...

 

Discover is not something you should expect a discount on but for that amount, pay it and be done with it. 

 

US Skank will also not be one that is apt to discount but they DO blacklist.  Sadly, they have the Elan unit that underwrites a lot of other products, which means a Skank blacklist could keep you from a lot of other cards.

 

I have no idea who Indigo is but the reporting of a zero balance with them and Fingerslut, yes both have probably been sold.  A tailored letter to the entity currently collecting should help with closing the matter and getting any third-party off of the reports.

 

And, BTW...who cares if you get blacklisted by a turd.  You NEVER want FP or other subprime offering again to begin with...but turds usually don't blacklist.  They make their money on the fees they gouge those who get a turd, walk it and keep coming back to pay more fees. 

 

Thank you

I just received an email from Cascade Capital they are collecting on that Fingerhut account. It hasn't reported to the CRA's. What should I do at this point to keep them from reporting it?

And Ok, I will call Discover and pay them 

Link to post
Share on other sites
16 hours ago, Help1285 said:

Cascade capital is collecting for that Finger hut account.  They haven’t reported to the CRA’s. How do I pay this and get them to not report ?

 

Generally speaking, paying a collection that isn't reporting isn't going to cause the collector to report.  It costs a data furnisher money to report a trade line, and if they have your money, why would they pay a credit bureau to tell them you no longer owe them anything?

Link to post
Share on other sites
On 5/17/2021 at 5:10 AM, Help1285 said:

Should I try to settle or pay in full ?  Thank you. 

 

For those amounts, pay them off if you can and avoid the hassle of fighting with them. If they sue, you'll lose and get stuck with atty fees and court costs. Arbitration is usually used for bigger amounts.

Link to post
Share on other sites
12 hours ago, legaleagle2012 said:

 

For those amounts, pay them off if you can and avoid the hassle of fighting with them. If they sue, you'll lose and get stuck with atty fees and court costs. Arbitration is usually used for bigger amounts.

  Ok I will pay them off. Should I pay off a collection agency that still hasnt reported? Any idea what I should write to them If they haven't reported? I feel like they may report after I pay them

Link to post
Share on other sites
14 hours ago, cv91915 said:

 

Generally speaking, paying a collection that isn't reporting isn't going to cause the collector to report.  It costs a data furnisher money to report a trade line, and if they have your money, why would they pay a credit bureau to tell them you no longer owe them anything?

 I just dont trust them. Dont CA do sneaky things just to make it hard on people?  

Link to post
Share on other sites
5 hours ago, Help1285 said:

 I just dont trust them. Dont CA do sneaky things just to make it hard on people?  

In a word...no.

 

Are there some that engage in questionable and, yes, even occasionally illegal tactics?  Sure.  That does not mean they all do so.  It is no different than claims some make about law enforcement...bad actors exist, but it does NOT mean they all go out of their way each and every day trying to figure out how to violate civil rights or have an excuse to use force. 

Link to post
Share on other sites
4 hours ago, centex said:

In a word...no.

 

Are there some that engage in questionable and, yes, even occasionally illegal tactics?  Sure.  That does not mean they all do so.  It is no different than claims some make about law enforcement...bad actors exist, but it does NOT mean they all go out of their way each and every day trying to figure out how to violate civil rights or have an excuse to use force. 

I see thanks. So I should just pay them in full and hope they don't  report it?

Link to post
Share on other sites
18 hours ago, Help1285 said:

I see thanks. So I should just pay them in full and hope they don't  report it?

I would have called...but I am not afraid of my phone.  Negotiations over the phone form the basis of an agreement that can then be memorialized through payment of the agreed upon amount.  I am also not afraid of speaking to executives...I don't deal with front-line phone drones. 

Link to post
Share on other sites
10 hours ago, centex said:

I would have called...but I am not afraid of my phone.  Negotiations over the phone form the basis of an agreement that can then be memorialized through payment of the agreed upon amount.  I am also not afraid of speaking to executives...I don't deal with front-line phone drones. 

Ok I will do that. I just paid Discover in full and US bank was willing to settle for $1700 on the $2400 debt. I asked them if they will report to the CRA that the balance is zero after I pay the full settlement amount of $1700 and they that the balance may not be reported as zero because the rest of the debt was canceled and not paid and that I would no longer owe them the balance . They confused me, I thought if I settled in full that they write off the remaining balance and report is as zero. 

Link to post
Share on other sites

I called Kohls /Capital one. They said they no longer service the account and the account is with DCM services a CA. They said I can not make a payment to them. What I did was login to my Kohls account and made a full payment in the amount of $400. 😂 That CA isn't even on my report yet so if they report anything its going to be false.

Link to post
Share on other sites
4 hours ago, Help1285 said:

Ok I will do that. I just paid Discover in full and US bank was willing to settle for $1700 on the $2400 debt. I asked them if they will report to the CRA that the balance is zero after I pay the full settlement amount of $1700 and they that the balance may not be reported as zero because the rest of the debt was canceled and not paid and that I would no longer owe them the balance . They confused me, I thought if I settled in full that they write off the remaining balance and report is as zero. 

Except you didn't settle in full with US Skank.  SIF would have been AT LEAST the $2400.  The fact that they only wrote down $700 may keep you from getting a 1099-C though...

Link to post
Share on other sites
3 hours ago, centex said:

Except you didn't settle in full with US Skank.  SIF would have been AT LEAST the $2400.  The fact that they only wrote down $700 may keep you from getting a 1099-C though...

Okay I thought that settling means that they would zero out the balance. Is it worth just paying them the $2400?

Link to post
Share on other sites
Posted (edited)
14 hours ago, Help1285 said:

Okay I thought that settling means that they would zero out the balance. Is it worth just paying them the $2400?

 

They will zero out the balance either way.  

 

What's different is how the account will report.  If they accept less than the full balance, the account will be noted as a charge-off + settled for less than the total amount owed.  

 

Settled for less... will look (marginally) worse when a human does a manual review of your credit report in response to a future credit application... as this created an even larger loss for the bank than if you'd settled in full.  

 

Edited by cv91915
Link to post
Share on other sites
11 hours ago, cv91915 said:

 

They will zero out the balance either way.  

 

What's different is how the account will report.  If they accept less than the full balance, the account will be noted as a charge-off + settled for less than the total amount owed.  

 

Settled for less... will look (marginally) worse when a human does a manual review of your credit report in response to a future credit application... as this created an even larger loss for the bank than if you'd settled in full.  

 

Does it effect Fico or just a manual review? Thanks 

Link to post
Share on other sites
Posted (edited)
22 hours ago, Help1285 said:

Does it effect Fico or just a manual review? Thanks 

 

No difference for FICO.  A CO is a CO.

 

 

 

Edited by cv91915
Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Member Statistics

    • Total Members
      183,036
    • Most Online
      2,046

    Newest Member
    PhDScholar
    Joined
×
×
  • Create New...

Important Information

Guidelines