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How Do I Deal With My Recently Charged Off Sears and Mervyns Cards? – Nancy

“Dear Steve,

Steve, I need more advice: I’ve just found out that I’ve two cards, Sears @ $1,300 & Mervyns @ $800 that have been charged off; Mervyns @ $1,200 has been closed. I have a good job, make good money so their was no perfectly sane reason why i stopped paying; I just did. Sears was charged off on Dec 19; spoke to them on the 20th but they said it was too late. It is with their internal recovery department. All my other credit cards are in good standing, but I’m afraid of how these will be affected by the charge off/closed accounts.

What do you suggest I do now? I have no idea. Do I settle as quickly as possible in full or offer a settlement? I’ve read about letters of deletion, do those work? How about having them change the status from charged off to something that is not negative? I’ve read so many conflicting reports online that I don’t know what to beleive anymore.

Nancy”

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The Answer

Dear Nancy,

It is what it is. Creditors are not inclined to falsify the reporting of the account for payment. The creditor has an agreement with the credit bureaus that says they will report the account factually and accurately.

The best bet at this point is pay them off quickly, and in full. Once you do that they will remain on your credit report but they will not still be delinquent and current. As time passes and you keep using your other cards on-time then your credit score will improve. If you don’t have any credit cards remaining you may want to consider getting a secured credit card or two that report to the credit bureaus to help rebuild your credit faster.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

How Do I Deal With My Recently Charged Off Sears and Mervyns Cards?   Nancy
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Nancy

    Steve, Leading Edge Recovery Solutions is the CA that bought my Sears account. They offered to settle for $867 but I do not have the money. They now offered to set up 12 monthly payments of $123. I do not have a problem paying since this is my debt. The only problem is that they want my bank account or debit card info. I will not give them my husband’s and my joint bank account info, but I do have a checking account I opened about a year ago, but I never use. I was planning on depositing only the payment amount each month to cover this settlement. This account does not have overdraft protection so they can’t over charge or charge multiple times. My bank will not pay it. Do you think my bank account will be safe if I choose to pay with this debit card. It is not linked to my husband’s and my checking account that we do use and have payroll direct deposit.

  • Nancy

    Steve, Leading Edge Recovery Solutions is the CA that bought my Sears account. They offered to settle for $867 but I do not have the money. They now offered to set up 12 monthly payments of $123. I do not have a problem paying since this is my debt. The only problem is that they want my bank account or debit card info. I will not give them my husband’s and my joint bank account info, but I do have a checking account I opened about a year ago, but I never use. I was planning on depositing only the payment amount each month to cover this settlement. This account does not have overdraft protection so they can’t over charge or charge multiple times. My bank will not pay it. Do you think my bank account will be safe if I choose to pay with this debit card. It is not linked to my husband’s and my checking account that we do use and have payroll direct deposit.

  • SeanDSLegalPlan

    Go to http://www.ftc.gov/bcp/edu/pub
    Doesn’t sound real.

  • Steve Rhode

    Sounds fishy. Do you actually owe the debt?

  • Drios93

    a lawyer is calling about a debt and that the county was notified and the authorities what do I do

  • Drios93

    a lawyer is calling about a debt and that the county was notified and the authorities what do I do

  • Nbernal220

    Thanks, Steve. I’ll be paying off the total amount on my sears card, and then mervyns. Like you said, it is what it is.

  • Nbernal220

    Thanks, Steve. I’ll be paying off the total amount on my sears card, and then mervyns. Like you said, it is what it is.

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