Paid TL still showing as Charge Off/Collection

[ntnsllc]

I have a small jewelry account that I've paid in full to the OC. I was still receiving statements from them when I paid in full in Sept 2008.

I pulled all 3 credit reports and see that it's still on there showing a balance of $393 and has a status of Charge Off/Collection.

To my knowledge, this account was past due, but never sent to collection. No CA ever contacted me about it and I paid the final balance on a statement recvd from the OC. Oh, and the TL is within SOL...but there is no balance.

So the question is what is the best strategy to have this fixed? These are some different options I've thought of after reading through a lot on this forum:

A. Send a goodwill letter to have "Collection/Chargeoff" and past due pmts removed and TL reported as "paid."

B. Dispute w/ CRA's and cross my fingers that it doesn't get verified...(however, if the OC does verify, it should then show as paid and 0 balance, right?)

Any other ideas?

[Trish]

Hi ntnsllc. Welcome

I would start off by disputing with the CRAs that it is NOT a charge off and it should be at zero balance. You can also dispute never late at the same time if you want to try that. You might get lucky and be able to get both things fixed. Be sure to send it CM (but not RR).

See what happens once you do that. Do you have any paperwork or records to prove that it was paid? If you do, just hang on to those in case you need them later on.

IF it comes back verified.........or depending on the investigation results, you will more than likely need to send a debt verification letter to the OC and ask them to verify and show proof that this TL is being reported properly........if they can't they HAVE to fix it or they are in violation. Any correspondence with the OC should be CMRR.

HTH

[ntnsllc]

Thanks Trish...that was a quickest reply I've ever had on this forum and it was just in time for me to get this out in the mail today!

[ntnsllc]

I did what you suggested on the previous post. Thank you...here's another one that I'm up in the air as to what I should do.

Last year a collector called me impersonating the sherriff's office. Because I read this forum, I knew my rights and retained an attorney. I recvd a settlement of lotsa CASH PLUS the debt was extinguished (they did some other outrageous things). Here are some details...the OC was HSBC but the debt was bought by LVNV Funding. LVNV was the party that settled out of court with me and agreed to extinguish the debt (I have a settlement contract stating that).

The OC still shows a balance owing on TU and pay status is "Collection/Chargeoff." EQFX and EXP are reporting 30 days late closed/transferred.

Per my attorney I sent a validation letter to the OC and they verified the debt. What are my options now to have it removed?

[Trish]

Oh it should definitely be a zero balance if the account was sold off to LVNV (WTG on getting a settlement out of those A-holes!! Good for you!)

Have you ever tried disputing it? If so how long ago, how (mail, online, phone), and what was your dispute reason?

If not....then do so. Not sure if you can get them to fix the lates (just like with the other you can dispute the lates too though) but you should at the very least be able to get that at a zero balance....
If it still comes back verified you need to send them a debt verification letter (NOT a validation letter - there is a difference).

*Be sure to always send disputes CM (not RR) and then any correspondence to OCs/CAs CMRR.

[ntnsllc]

I sent a dispute to the OC and they verified the debt. I have not disputed with the CRA...is that what I should do, despite the fact that the OC already verified? I'm afraid they'll just verify with the CRA as well.

[Trish]

Yes... go ahead and dispute it with the CRAs again and then send the debt verification letter if it gets verified.

Be sure to hand write your dispute letter if possible.......if not, use purple or teal italic font.....and send CM (not RR).

[ntnsllc]

ummm...why hand written or purple font?? That one throws me for a loop.

[Trish]

Remove bk items?

That's just a post where I explained it in a little more detail.

[coldweatherMN]

My issue is somewhat similar. I settled through my attorney on a bad debt with Chase. Very long story and drawn out issues but needless to say, the debt is settled. The original debt is still visible on my CR's but with no activity since 2006 - should I leave that alone or do something with it? Next, the CA marked the account as Paid/Settled/Closed but it still shows all the 30, 60, 90, 120, 180 late pays. What do I do about that? Does it just stay there? It is recent as January 2009 when I paid the settlement.