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Posted in Paying Your Bills
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Question By
JavaManOne

4 Contributions
13 People Helped
Credit card Company won't accept payment on charge off
Here's one for the ages. My wife and I each had two separate secured cards from a company called Open Sky/Capital Bank. Both were charged off after I missed payments, they were redoing their website, I lost all information to take care of this (email account went South as well) so I blew it. I finally hunted down three addresses and sent a letter to each for account information explaining I wanted to pay off the debt but need the account numbers.

After a few months I received the information for mine only. After months of trying for my wife we received a letter saying "Due to the status of your account (charged-off), we are unable to accept payment. We are under no obligation to accept a payment even though we may continue to report the unpaid balance that we've charged off."

I also requested the account number but they only referred to the last four digits. The credit report shows all numbers except the last four. My thinking is to send the payment with a cover letter referring to the full account number and see if the cash the check. If they do I can at least have that shown as "paid" on the credit report. However, if they don't accept the payment do I have any recourse?

Any advise or constructive comment would be appreciated. Thank You.

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Top Contributor
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It is normal for credit card companies to not accept payments on charged off accounts. Keep in mind that they probably sold the account to a debt collector and a collection account may soon be popping up in addition to the charged off account.

Reply by
BetsyGal

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0 People Helped

Thanks for your reply. I'm dealing with the original debtor. They sent a letter to my inquiry they would not accept payment. This is Capital Bank (Open Sky) and they don't sell their charged off receivables much like Capital One.

Top Contributor
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Also, those were secured cards and the money you deposited as security made the final payments on the cards so they don't need to accept any payments.I suggest always keeping the account and contact information for all credit accounts written down and in a locked box so you will have it available when needed.

Top Contributor
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The original creditor won't/can't accept payment on charged-off accounts are either because, A) they have already written the debt off to profit loss and no longer pursuing you for that debt, or B) they sold it to collection agency/debt buyer, the original creditor no longer have authority to pursue you, because they don't own that debt, collection agency dose... Since they are still reporting the balance on that charge-off, it tells me that they have written it off, other wise they have to report 0 balance if it was sold to collection agency.

Reply by
BetsyGal

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0 People Helped

This was the exact same debt my husband had on a separate account in which he was able to pay it off. Two different results on similar charge offs. Same amounts as well. On his credit report it shows "charged off paid" with a zero amount mine shows "charged off" with the original amount owed.

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