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Removing Charge Off Question


CR2016
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Hi did a search but didn't see an answer to my question.  there is a guy on the internet saying you can write the 3 CRA and remove charge off items. Is this possible? A friend told me that if it is charged off the creditor has received the tax write off and you no longer owe it to them? Is this accurate?  The guy  on the internet has a formed letter on what to say to get it removed. Does this work? here is what he suggests. He also said remove old addys and opt out first. His letter doesn't make sense but he had some of it blocked out bc it had personal info. I can provide you his link if you need it. My question is it is possible to get a recent charge off removed and what is the proper formality? Thank you. 

 

Date
Re letter to remove inaccurate credit information
 
To whom it may concern:
 
I received a copy of my credit report and the following items to be in error :
 
I need to see
 
Report. You didn't send anything to prove ownership
 
  1. Name
  2. acct num
  3. why am i seeing a balance after it was a collection/charge off? Please delete this immediately.
 
By the provisions of the fair credit reporting act, I demand that these items be investigated and removed from my report. It is my understanding that you will recheck these items with the creditor who has posted them. Please remove any information that the creditor cannot verify. I understand it under 15 U.S.C. Sec. 1681(a), you must complete this reinvestigation within 30 days of receipt of this letter.
 
Please send an updated copy of my credit report to the above address. According to the act, there will be no charge for this updated report. I also request that you please send notices of corrections to anyone who received my credit report in the past six months.
 
Thank you for your time and help in this matter. Sincerely,
 
 
 
 
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You can start by asking the lender to send a deletion letter to the bureaus.  Especially if you  were engaged in some formal agreement with them to resolve any any financial disputes. 

 

If this CO went through the court system, I would certainly ask for them to dismiss it with prejudice. It should automatically fall off if they agreed to it. The most the CRAs can do is to to have the lenders send them that deletion letter or you file a dispute against them. However, since this does not likely fall under any compromised identity circumstances, you'll likely have to do the former.

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Hi did a search but didn't see an answer to my question.  there is a guy on the internet saying you can write the 3 CRA and remove charge off items. Is this possible? A friend told me that if it is charged off the creditor has received the tax write off and you no longer owe it to them? Is this accurate?  The guy  on the internet has a formed letter on what to say to get it removed. Does this work? here is what he suggests. He also said remove old addys and opt out first. His letter doesn't make sense but he had some of it blocked out bc it had personal info. I can provide you his link if you need it. My question is it is possible to get a recent charge off removed and what is the proper formality? Thank you. 
 
Date Re letter to remove inaccurate credit information   To whom it may concern:   I received a copy of my credit report and the following items to be in error :   I need to see   Report. You didn't send anything to prove ownership  
  1. Name
  2. acct num
  3. why am i seeing a balance after it was a collection/charge off? Please delete this immediately.
  By the provisions of the fair credit reporting act, I demand that these items be investigated and removed from my report. It is my understanding that you will recheck these items with the creditor who has posted them. Please remove any information that the creditor cannot verify. I understand it under 15 U.S.C. Sec. 1681(a), you must complete this reinvestigation within 30 days of receipt of this letter.   Please send an updated copy of my credit report to the above address. According to the act, there will be no charge for this updated report. I also request that you please send notices of corrections to anyone who received my credit report in the past six months.   Thank you for your time and help in this matter. Sincerely,        





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15 hours ago, CR2016 said:

Hi did a search but didn't see an answer to my question.  there is a guy on the internet saying you can write the 3 CRA and remove charge off items. Is this possible? A friend told me that if it is charged off the creditor has received the tax write off and you no longer owe it to them? Is this accurate?  The guy  on the internet has a formed letter on what to say to get it removed. Does this work? here is what he suggests. He also said remove old addys and opt out first. His letter doesn't make sense but he had some of it blocked out bc it had personal info. I can provide you his link if you need it. My question is it is possible to get a recent charge off removed and what is the proper formality? Thank you. 

 

Date
Re letter to remove inaccurate credit information
 
To whom it may concern:
 
I received a copy of my credit report and the following items to be in error :
 
I need to see
 
Report. You didn't send anything to prove ownership
 
  1. Name
  2. acct num
  3. why am i seeing a balance after it was a collection/charge off? Please delete this immediately.
 
By the provisions of the fair credit reporting act, I demand that these items be investigated and removed from my report. It is my understanding that you will recheck these items with the creditor who has posted them. Please remove any information that the creditor cannot verify. I understand it under 15 U.S.C. Sec. 1681(a), you must complete this reinvestigation within 30 days of receipt of this letter.
 
Please send an updated copy of my credit report to the above address. According to the act, there will be no charge for this updated report. I also request that you please send notices of corrections to anyone who received my credit report in the past six months.
 
Thank you for your time and help in this matter. Sincerely,
 
 
 
 

 

Lets start at the top:  first if it is something you read on the internet with a cut and paste letter guaranteeing to remove accurate information from your reports to improve your score to 800:  IT IS FALSE.  Next:  "charge off" is merely an accounting term.  As long as the creditor reports the account as charged off with a zero balance it is accurate and it can/will stay reporting.  There is absolutely NO requirement they remove an account from a consumer report simply because it is no longer considered an asset i.e. has been charged off.

 

Last:  you used the phrase "recent charge off" in your post.  How recent is this charge off?  Since banking regulations require that a defaulted account be charged off at 180 days maximum from the DOFD that would make the account approximately 6-12 months old.  Most states have a statute of limitations way longer than that.  The minimum SOL for lawsuit is 3 years on debts some states are as long as 10 years.  Engaging in credit repair on a recent charge off that is still ripe for a lawsuit to collect will likely only fast track the creditor straight to the clerk's office to file against you.  Without knowing when you defaulted, who the creditor is that is reporting, and the state you reside in the best advice right now is DO NOT SEND THAT LETTER. (or any other attempting removal)

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Your friend is an idiot. 

 

While there are a few well-written letters that have helped to get certain fields corrected once the 1099-C issued, they are few and far between.  Matters are not deleted or incorrect just because the entity MAY have taken a tax write down, something which may or may not have occurred.  The term chargeoff is something required by regulators at a particular point in time. 

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Thank you everyone 😃

8 hours ago, CreditSucksNot said:

 

Lets start at the top:  first if it is something you read on the internet with a cut and paste letter guaranteeing to remove accurate information from your reports to improve your score to 800:  IT IS FALSE.  Next:  "charge off" is merely an accounting term.  As long as the creditor reports the account as charged off with a zero balance it is accurate and it can/will stay reporting.  There is absolutely NO requirement they remove an account from a consumer report simply because it is no longer considered an asset i.e. has been charged off.

 

Last:  you used the phrase "recent charge off" in your post.  How recent is this charge off?  Since banking regulations require that a defaulted account be charged off at 180 days maximum from the DOFD that would make the account approximately 6-12 months old.  Most states have a statute of limitations way longer than that.  The minimum SOL for lawsuit is 3 years on debts some states are as long as 10 years.  Engaging in credit repair on a recent charge off that is still ripe for a lawsuit to collect will likely only fast track the creditor straight to the clerk's office to file against you.  Without knowing when you defaulted, who the creditor is that is reporting, and the state you reside in the best advice right now is DO NOT SEND THAT LETTER. (or any other attempting removal)

Be back later with the info and thank you.

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So in other words something that is legally a charge off cannot be removed and potentially can be bought by JDB and I have to deal with them and removing it? If it was charged off by the original Creditor they are not expecting to be paid back, correct? They received the tax write off and I realize I owe it ($610.00 to NFCU) but my credit is being affected and I cannot move into a rental apartment without good credit and do not wish to be homeless. It was opened 6/20/18 and this is what it reads on TU "Account charged off. $610.00 charged off. $610.00 past due as of Oct. 2021." so how can it be past due if it is charged off? Isn't that reporting incorrectly and can be removed? It shows a balance due yet says it's charged off. 

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Just now, CR2016 said:

So in other words something that is legally a charge off cannot be removed and potentially can be bought by JDB and I have to deal with them and removing it? If it was charged off by the original Creditor they are not expecting to be paid back, correct? They received the tax write off and I realize I owe it ($610.00 to NFCU) but my credit is being affected and I cannot move into a rental apartment without good credit and do not wish to be homeless. It was opened 6/20/18 and this is what it reads on TU "Account charged off. $610.00 charged off. $610.00 past due as of Oct. 2021." so how can it be past due if it is charged off? Isn't that reporting incorrectly and can be removed? It shows a balance due yet says it's charged off. 

Charge off is an account term required under federal regulations...but it does not alter the fact that you still stiffed the lender and the amount is past due. 

 

Many credit unions don't sell their paper.  They ALSO are not as likely to enter into any manner of PFD, but if you are needing it zeroed for the purposes of housing, then you suck it up and deal with the lender and hope they update in a prompt fashion.  Since they are still current in their reporting, it is not as though the zeroed out amount with a newish date is going to hurt you...the ones that get stung have something that has just been sitting dormant for years and THEN becomes a current date for the data. 

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37 minutes ago, centex said:

Charge off is an account term required under federal regulations...but it does not alter the fact that you still stiffed the lender and the amount is past due. 

 

Many credit unions don't sell their paper.  They ALSO are not as likely to enter into any manner of PFD, but if you are needing it zeroed for the purposes of housing, then you suck it up and deal with the lender and hope they update in a prompt fashion.  Since they are still current in their reporting, it is not as though the zeroed out amount with a newish date is going to hurt you...the ones that get stung have something that has just been sitting dormant for years and THEN becomes a current date for the data. 

Well circumstances were not in my favor my mom dropped a bomb that her house (in another state) was in foreclosure and I spent all my savings trying to (successfully) save her home but my hubs walked out and I now need a place to live and good credit to get it and my credit suffered so I could save my moms house. Not looking for sympathy these are facts. So I've been turned down bc "bad credit" when literately there is just this one thing and one other for 2400.00 that was charged off while I was helping mom. I cant pay them right now bc I need all I have to move. Yes it is hurting my credit the apartment rental lady told me I was not approved due to two recent charge offs. 

 

So, if the CU wont pay for delete then what to do if not try and get it removed? I don't know I came here for help not to be accused of stiffing a bank for 600 when I saved my moms house for 300K. Thank you. 

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2 hours ago, CR2016 said:

Well circumstances were not in my favor my mom dropped a bomb that her house (in another state) was in foreclosure and I spent all my savings trying to (successfully) save her home but my hubs walked out and I now need a place to live and good credit to get it and my credit suffered so I could save my moms house. Not looking for sympathy these are facts. So I've been turned down bc "bad credit" when literately there is just this one thing and one other for 2400.00 that was charged off while I was helping mom. I cant pay them right now bc I need all I have to move. Yes it is hurting my credit the apartment rental lady told me I was not approved due to two recent charge offs. 

 

So, if the CU wont pay for delete then what to do if not try and get it removed? I don't know I came here for help not to be accused of stiffing a bank for 600 when I saved my moms house for 300K. Thank you. 

I'm not trying to sound flippant but can mom help you now?

 

do you have paper copies of your reports?

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So in other words something that is legally a charge off cannot be removed and potentially can be bought by JDB and I have to deal with them and removing it? If it was charged off by the original Creditor they are not expecting to be paid back, correct? They received the tax write off and I realize I owe it ($610.00 to NFCU) but my credit is being affected and I cannot move into a rental apartment without good credit and do not wish to be homeless. It was opened 6/20/18 and this is what it reads on TU "Account charged off. $610.00 charged off. $610.00 past due as of Oct. 2021." so how can it be past due if it is charged off? Isn't that reporting incorrectly and can be removed? It shows a balance due yet says it's charged off. 


Q1. Yes, you have to deal with it. Their reporting is correct and, whether you like it or not, it can remain on your credit reports for up to 7.5 years. A charge-off does not mean they aren't entitled to their money.

Q2. False. They are expecting to get their money back. You obviously fail to understand what a charge-off is. It is an accounting device designed to remove an asset from their books. When they lend you money, that is the bank's asset. When you stiff them, they need to remove that from their list of assets. That they may or may not get a tax write-off is irrelevant. Also, if they do collect from you, then they will report that on their taxes and whatever write-off they received previously will be adjusted. And, by the way, the write-off they received is not 100% of what you stiffed them for.

Q3. It can remain on your credit reports for 7 and 1/2 years from the date of first delinquency. Whining about it can never -- yes, never -- change that fact.


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Well circumstances were not in my favor my mom dropped a bomb that her house (in another state) was in foreclosure and I spent all my savings trying to (successfully) save her home but my hubs walked out and I now need a place to live and good credit to get it and my credit suffered so I could save my moms house. Not looking for sympathy these are facts. So I've been turned down bc "bad credit" when literately there is just this one thing and one other for 2400.00 that was charged off while I was helping mom. I cant pay them right now bc I need all I have to move. Yes it is hurting my credit the apartment rental lady told me I was not approved due to two recent charge offs. 
 
So, if the CU wont pay for delete then what to do if not try and get it removed? I don't know I came here for help not to be accused of stiffing a bank for 600 when I saved my moms house for 300K. Thank you. 

There are many reasons why an individual does not / cannot pay their debts. Life's a biatch. We all know that.

But if someone borrows money from me and doesn't pay it back, I don't give a flying fvk why. I want / need my money. As it stands, the law allows a creditor to report your past behavior for, in the case you described, 7.5 years. There's nothing you can do about it and whining won't change things.

Navy Federal will never -- yes, never -- agree to a pay-for-delete. Get that idea out of your head. What they will agree to, however, is a payment plan and, upon successful completion, they will mark the debt paid. There's a chance that a potential landlord / creditor will view a paid collection more favorably than an unpaid one.

Another option is to file bankruptcy. I have no idea how a potential landlord views a tenant with a recent bankruptcy on their credit reports.

There are millions of people with credit problems -- some people they did a piss poor job of managing their finances and others, like you, through no fault of their own. Life's a biatch. Your only recourse now is to either live with it or try to deal with it. The garbage you read about getting things removed might work for some lenders, but never -- yes, never -- with Navy Federal. They are meaner than a junkyard dog and they know & follow the law when it comes to credit reporting.

It seems like you either need to start pooping money or else find somewhere to live where the landlord either doesn't do a credit check or doesn't mind blemishes on credit reports.


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...
So, if the CU wont pay for delete then what to do if not try and get it removed? I don't know I came here for help not to be accused of stiffing a bank for 600 when I saved my moms house for 300K. Thank you. 


Nobody is accusing you or judging you because you "stiffed a bank". We are simply pointing out the cold, hard facts.

Every creditor is different. Navy Federal Credit Union will never -- yes, never -- accept a pay-for-delete. They are well-known for this.

Getting the derogatory tradeline removed would be nice, but legally they are 100% correct in their reporting. Whether you like it or not, it can remain for 7.5 years and there's nothing that can be done about it unless Navy Federal decides to change it.

You need to start thinking of different solutions to the issue.


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11 hours ago, CR2016 said:

if the CU wont pay for delete then what to do if not try and get it removed?

 

There isn't much if about it.  They aren't going to voluntarily remove this from your reports, even if you pay them.

 

If you can find something wrong with how it's reporting, you may have a chance.  

 

9 hours ago, hegemony said:

the apartment rental lady

 

You will have better luck finding rental housing with damaged credit from smaller investors (a neighbor who owns a rental house, friend of a friend, or just a guy who posts an ad online) than you will with large rental firms.  If your laws allow it, larger leasing entities may take you with a large security deposit, but that doesn't sound viable based on the rest of your situation.

 

You may also consider sharing a place with someone who's renting out a room in their home.  Ideal?  No, but as a temporary solution...

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18 minutes ago, hegemony said:

WTH?  @cv91915

 

That's REALLY bizarre.  I posted that in a thread about someone who'd exhausted financial resources helping her mom save her house from foreclosure.

 

Sometimes weird things happen if I start a post but don't finish it, and then resume browsing CB on another device, but this is a first.  

 

COMPUTER GLITCH??   

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5 hours ago, cv91915 said:

You will have better luck finding rental housing with damaged credit from smaller investors (a neighbor who owns a rental house, friend of a friend, or just a guy who posts an ad online) than you will with large rental firms.  If your laws allow it, larger leasing entities may take you with a large security deposit, but that doesn't sound viable based on the rest of your situation.

 

You may also consider sharing a place with someone who's renting out a room in their home.  Ideal?  No, but as a temporary solution...

 

Without knowing what state/area the OP is looking for housing in it is hard to say what tactic might work to secure a rental.  Unfortunately in many places now what used to be effective for credit issues in renting no longer is due to sky rocketing demand and low to no inventory.  Here in Las Vegas after 2012 if you paid a larger deposit to ANY landlord you could get a great place with decent rent and horrid credit.  They over looked a LOT after the housing melt down and recession.  Today:  ain't gonna happen.  The demand is SO high that they can pick and choose who they want to rent to and ANY credit blemish gets you tossed aside for the 6-12 applicants with stellar credit who were unable to buy a house due to the competition in that market.  The apartment I left back in March when I bought my house had a 60 day notice.  My unit was re-rented within 3 days of turning in notice.  They are at 100% occupancy and have a waiting list.

 

Worse:  some states like NV do not have laws on the books limiting what they can charge for application fees or how many applications they can take.  I read an article yesterday about how it is becoming a major problem here and in other states with landlords taking multiple applications for the same unit at a cost of $50-200 per application knowing the unit is already rented or that the person won't qualify.  Few states have laws that do not allow a landlord to continue taking application fees like that and let them line their pockets.  Some recent renters reported spending $800-2000 just in application fees alone before getting locked into a lease.

 

I am going to go with the suggestion that you put your belongings in storage and rent a room until you can work this out.  Not only could you get a better place to live without the credit worry while you deal with it but could actually save some money up again too.

 

Edited to add:  also the small landlord market is drying up in many areas due to the moratoriums on evictions making it no longer financially sound to remain a small landlord and/or the demand for sales with lofty sales prices making selling way more attractive than renting.  Getting a work around on renting a place isn't as easy as it used to be with the demand on both markets.

Edited by CreditSucksNot
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On 11/11/2021 at 5:03 PM, hegemony said:

I'm not trying to sound flippant but can mom help you now?

 

do you have paper copies of your reports?

She isn't able to and she moved out into a small apartment for seniors so I am not able to live there. I do have paper copies of the CR, why?

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