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Most creditors will say no. What can be done: 1. the creditor can change the rating on the account if you have proof that it was paid on time with the borrower getting a letter stating that they did just that. Follow up with the 3 credit reporting companies to make sure this is done.

2. the creditor can start a whole new account--that will allow you to pay this one on time, giving you a 2nd chance.

KEEP ANY LETTER YOU GET THAT CHANGES YOUR REPORT AS THE POSSIBILITY THAT YOU WILL NEED IT AGAIN IS VERY HIGH!!! On a charged off account, most corrections have to be done by hand--alot of times this is not done (for whatever reason) and your letter is the only proof of what was done.

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โˆ™ 2015-07-14 16:10:22
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Q: Can a creditor reopen an account once it has been reported to the credit agencies as a charge off?
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Related questions

Can a collection agency charge fees or interest in new jersey?

Collection agencies can't add charges. Fees and interest charged to your account are per the terms of your contract with the creditor.

Can you dispute a charge off account?

No. Once an account has been in default for 180 days, the creditor by law must list it as a charge off.

Can a creditor remove a charge off?

Yes, a creditor can remove a charge off from your account and your credit reports. Credit bureaus can also delete charge offs from your credit report if they are disputed and not verified.

You had a credit card account which they charged off and sold to a collection agency ca Now you have that charge off which carries a balance and a CA collecting on the same debt What could you do?

It is unlikely that the account was "sold" to a collection agency. Rather, the agency was contracted to recover the debt. The "charge off" of the account only affects the original creditor, and represents a loss reported against the company's taxes. If the collection agency has attempted to recover the debt and has been unable to, the original creditor will likely pull back the account and refer it to another agency in hopes of greater success.

At what point does a creditor decide to charge off an account?

The original creditor is required by law to charge off an account after a 180 day deliquency. In most instances the account is sold to a third party collector. The collection agency will continue collection procedures. If an equitable arrangement cannot be made with the debtor, the collector may refer the account to an attorney who may decide to file a lawsuit.

Are creditors compelled by law to report a settlement account as a charge off?

The account will be reported as "settled in full / was charged off"

What is the definition of the term 'charge off'?

The term "charge off" is used when a company or creditor clears a persons account due to lack of payment at loss to the company. No further charges can be applied to the account.

What is the difference between pre-charge off and post-charge off accounts?

A pre-charge off is when the creditor is giving the debtor notice that the account is in default and will be sent to collections if a payment agreement is not made by a specified date. Post-charge off is when the account has been sent to collections, sold to a third party creditor or referred to a legal firm for further action.

Is it legal for a creditor to charge late fees on an account AFTER it has been discharged in chapter 7?

Provided the account was indeed discharged and the late fees were generated after the discharge, the answer is no.

What is a Charge off loan?

Its' when a creditor/lender closes your account due to non-payment. This process takes place for tax purposes (so it's not a complete loss to the creditor/lender).

Why original creditors sale accounts to a collection agency?

Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.

What can you do if a credit card issuer is planning to sue for an account that was never charged off or reported to the credit bureaus?

Any creditor/lender may file a lawsuit against a defaulted account at any time. The account need not be designated a charge off nor be reported to credit bureaus before litigation can be pursued. The best choice is for the debtor to seek advice from an attorney who is qualified in creditor and debtor issues (bankruptcy attorney). Most attorneys offer a free or minimal fee consultation to discuss the options. If the debtor chooses not to seek legal advice, he or she should research the laws of their state to discover what personal and real property can be exempted from creditor attachment.

Are there no regulating rules to control the buy outs of charge-offs etc by several collection agencies?

No. There are laws regulating how a debt is collected. The original creditor can sell an account, for example that is $5,000 to a third party for any amount they agree on. Even if the account was sold for $500 the collection agency can get the entire $5,000+ or at least try.

Can a creditor continue to report delinquency to a charged off account?

Once an account is settled, as with a charge off, the creditor must refelct that the account is settled. Failure to do so is a violation of the Fair Credit Reporting Act, a federal law. Dispute the bad reporting first with the credit bureau (Equifax, TransUnion or Experian). If they fail to change it within 30 days, file a formal complaint with the Federal Trade Commission (FTC) who is their regulatory agency. * Yes. A charge off does not indicate a debt is settled or not fully collectible. A charge off simply indicates that the original creditor is clearing the account of the books and referring it to a collection agency.

Can collection agencies charge interest?

Yes, unfortunately they can charge interest and other fees if they have purchased the debt from your original creditor. However, it is always a good possibility to negotiate collections for a fraction of what you owe (including extra fees).

If spouse dies and account was in his name but I was able to charge and the creditor NOW wants to cancel the account because he was the primary cardholder do I have to pay debt off?

you're gonna have a load of debt.

Is there a form letter a person can write to close old charge accounts?

It doesn't need to be anything fancy. Just keep it simple. "Dear Creditor: I will no longer be using your credit card. Please close my account and report the account to the creditor bureaus as being closed at my request."

What does a charge off with a zero balance mean?

A charge off with a zero balance means that a creditor has written off your account as a bad debt. This will show up as a negative mark on your credit report.

Can a creditor still charge interest rates if they are garnishing your wages?

If you have a garishee against your salary can the creditor still charge interest. Thanks Theo

How many times and how often can a collection agency post an account to your credit report as a charge off?

A collection agency cannot charge-off an already charged-off account. The reporting of the STATUS of the account AS a charge-off can be reported every time they update with the credit bureaus. The 'date of status' must be the date of the ORIGINAL charge-off.

If you've settled a debt with a credit collection agency can the original creditor buy back the account and try and charge you again?

No ... you have the proof that the debt was settled.

Can a creditor keep reporting a charged off account?

That is perfectly legal. The term "charge off" does not mean that the debt is not still valid and fully collectible.

If a bankruptcy was discharged on an account that was sold to another lender and the original creditor is marking it as a charge off should it be marked as bankruptcy by the original creditor?

Yes, this debt should have been marked as a bankruptcy by the original creditor. It cannot be changed from a bankruptcy to a discharge unless the bankruptcy did not go through.

Can an account be in Charge Off Status if payments are behind but being made?

Yes, it can. Just because a creditor charges off your debt, does not mean that you don't still owe it. Before you pay on a charge off, make sure you get an agreement from the creditor to delete it from your credit report once it's paid!

How do you remove charge offs from a credit report?

Charge-offs remain on your credit report for 7 years. If the account has been included in a bankruptcy, it should be marked as such...."included in bankruptcy". However, according to the Fair Credit Reporting Act, if you dispute the charge-off with the credit bureau and the creditor can not verify the account, it must be removed from your credit report immediately. Only the original creditor or the credit bureaus can remove a charge off, either through negotiations or through the dispute process.