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NewCreditGardener

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Charge Off/Collections
I have a credit card opened on May 2014 that's reporting as Closed and Charge Off/Collections. It has 7 missed payments on it. Do you think that it would be in my best interest to ask for a pay to delete? Not sure if it would hurt my credit history since it is already being reported as closed.

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Correction

Correction: Account was opened on December 2011.

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You should check to see if the account is in the "statute of limitations" in your state to be sued for it. If you can still be sued, it may be best to wait it out and not contact anyone regarding it. If the "sol" has expired on the debt, then you can try to get a "pay for delete" as it is always worth a try, but you will have better luck getting payfordeletes with debt collectors rather than credit card companies.

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Word of advice

If the account is in charge off/collection status whether or not you pay it , it will still remain negative. What will most likely happen... they will accept your money and sell your account before the money is received. I have seen this happen so many times. They are legally not supposed to do so but it happens more often than you think.

I would first challenge the verification. Do not make any indication that the debt is actually yours. Always speak hypothetically when on the phone with these slicksters. I would advise speaking to them over the phone and seeing if they even can prove the account is yours.  Just because they have your name address and ssn doesnt mean its yours. Identity theft is a hell of a crime. Once you speak to them on the phone give it 3-5 days and call back. By then you will know if they can validate it or not. What they do when they cant prove it belongs to you is just close out the account. If they said they are in fact doing this then request a letter stating that, in the event that they try to sell the account to collection agency you can use that letter to get that collection account removed immediately.

If they are reporting it as a charge off :

In order to legally charge something off the company must count it as a loss on their taxes. If they are counting it as a loss you are required to count it as a gain in the same year they cut the loss and the only way that can be done is if they file a 1099-C with the IRS which is a cancelllation of debt. Without the 1099 C in the year that they are claiming it was charged off the charge off is not valid and you can dispute it as such!

Hope this helps

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