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Question By
kathniel

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what should I do with a collection/charge off account that is still reporting after 5 years
Hi!
I am trying to rebuild my credit and don't know as much so please be patient with me :)
So I opened a credit card account in 2007 but missed payments in 2010. In 2012 the creditor reported it as "collection/charge off" every month up to this very day.
My question is,
1. When can they continue reporting this?
2. Should I just pay and settle with the creditors?
3. What would be my best option?
Thanks in advance!

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Most Helpful Response

Just ride it out

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If the last payment you made was in 2010, there's a chance it will come off in 2017 even if they reported the chargeoff in 2012. I had some that were like that in 2007 and were reported as charge-offs in 2010 but they came off my record in 2014. 

Reply by
kathniel

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Hopefully it would be the same in your case. Fingers crossed. I actually just noticed that they have been reporting it monthly up tot his very day. But since I opened a secured card my credit score went up by 40 points.

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Thank you for your quick response :) I really thought this won't come out since it is been reporting monthly since 2012. Also, I have read somewhere that we can try to settle it with the bank and asked them to delete it in your report. Would that be an option?

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Reply by
Krissie72

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"Pay to Delete" is estimated to succeed 10% of the time. The reason its success rate is so low is because the collection agency or creditor that does this for you is violating their agreement with the credit bureaus. Charge offs and collections, if the information is accurate, are supposed to be there for 7.5 years from the date you were 30 days late with the original creditor. They will continue to report every month until they are no longer allowed to do so. 

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Per FCRA section 605, the reportable/removal date for collection accounts is 7 year plus 180 days from Date Of First Delinquency. It's usually when last time you didn't pay that lead up to charge-off/collections. It doesn't go by any other date. The credit bureaus routinely remove them with-in 7 years from DOFD, If you aren't certain what date it was? Call Credit Bureaus, they can tell you exactly when they will remove them.

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In some very limited cases, the original creditors might be able to recall the collections, if you pay them directly. There is diffence between charge-off for profit/loss/bad debt written off and charge-off referred/send/sold to collections

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You state that ie was "charged off"

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once it is "Charged Off" that means that the lender took a tax credit for the bad debt and is no longer legally able to collect it. So trying to pay it off won't work.  Old accounts will continue to show up on your report for 7 years as part of your credit history. Your just going to have to ride this out until it falls off your report 7 years from the last activity, which you mentioned was in 2012.  So it will be on your report until 2019.  If you are seriously trying to rebuild credit, now would be the time to start with a "Secured credit card". This is where you make a deposit in a savings account that is used as collateral for the card. Read up on them in the articles here on CK so you understand the process.

Good luck

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