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Can I Get the Bank to Remove the Charge Off From My Credit Report? – Ellen

By on February 12, 2010
Can I Get the Bank to Remove the Charge Off From My Credit Report? – Ellen

“Dear Steve,

My credit score is currently listed at about 560 ish with Experian and Equifax. There are a total of 5 olds accounts all not more that 400.00 dollars. I paid 3 off and I’m waiting for my paid in full letter. the other two I am disputing because a junk debt dealer bought the accounts, changed account numbers , added extra money on top of the past due amounts, and rest the clock on the age of the account There is one charge off listed with the original creditor totaling $403.00 but lists the balance due as $0. I’m assuming because it is a charge off.

I actually have two questions, the first one is a two part question.. Based on the background information…assuming the two entry’s form the junk dealer are removed through the dispute, and with the other accounts paid , how much can I expect my credit score to rise? Second question. , I could easily pay the $403.00 to the original creditor to get that charge off removed. What is the best way to get the original bank to delete the charge off in exchange for payment. It is scheduled to fall off in 2012, but I would like to get it removed sooner if possible

Ellen”

Dear Ellen,

It sounds like you are well on your way to making things better.

The bank will not remove the charge off notation. Their agreement with the credit bureaus says they must report the account truthfully and accurately. At one time the account was charged off. It is what it is. Besides, removing that would not boost your score.

You also made the statement that the charge off would come off your credit report in 2012. That’s not quite accurate. After 7.5 years from the date an account first went delinquent charge off will no longer appear on your consumer credit report. I think that’s what you are referring to. But the charge off will always be associated with that account and in certain situations your credit report can be pulled to show all the activity, not just within the last 7.5 years.

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It sounds like the problem now is you don’t have much in the way of current credit that is being reported that will bring your score back up.

The way to repair credit is to close the door on the old open stuff and start having new credit reported. I prefer the secured card approach for doing this.

As far as modeling what will happen with your credit score, there are many credit score products that can do that for you. I use the one associated with this consolidated credit report.

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About 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.

3 Comments

  1. Jami Hirsch

    February 12, 2010 at 6:12 pm

    Ellen, you CAN negotiate what is called a “pay for deletion” on an account you have not yet paid off. If you have already paid them off, then its too late. If not, you can send them a proposal to pay _______in exchange for them deleting the account from your credit report. It is true that they have an agreement with the credit bureaus to report true and accurate information, however, it sounds like the information is not accurate. I have negotiated several of these personally and can give you some advice if you would like additional information feel free to email me at jami@victorycreditrestoration.com.
    .-= Jami Hirsch´s last blog ..5 Quick Tips to Raise your Credit Score =-.

    • Steve Rhode

      February 12, 2010 at 7:36 pm

      Jami,

      I See you are up in Traverse City, MI. My favorite pie company is located there.

      Granted, if the charge off is not accurate it can be easily removed by disputing it with the credit bureaus. However, removing a valid charge off from a credit report and then applying for credit leaves the person exposed to and committing credit fraud.

      The whole pay for deletion thing is a scam in my POV and violates the credit bureau agreements. It’s not worth doing this and certainly not necessary, especially as easily as credit can be rebuilt. There would be nothing to prevent a creditor from dumping data at a latter time and reporting the negative item again.

      At the end of the day a credit report should be a fair, honest and truthful representation of your credit, good and/or bad. Inaccurate information can be removed by the consumer for free by disputing it and accurate information removed only leads to greater problems down the road and it unnecessary.

      I’m curious, how are you not running afoul of the Credit Repair Organizations Act with your credit restoration services and charging for pay for deletion services? It seems like your advice to pay to delete violates that part of the CROA that says it is prohibited to, “make any statement, or counsel or advise any consumer to make any statement, which is untrue or misleading (or which, upon the exercise of reasonable care, should be known by the credit repair organization, officer, employee, agent, or other person to be untrue or misleading) with respect to any consumer’s credit worthiness, credit standing, or credit capacity” Advising someone to delete an item which you know is accurate seems like you are playing with fire.

      Steve

  2. Ellen

    February 12, 2010 at 4:46 pm

    Hi Steve,

    Thank you for the speedy response. I very much appreciate it. I suspected that the bank would not remove a charge off, but I had been reading a few threads that said you could ask for the entry to be deleted in exchange for payment….sounded too good to be true! I have started the process of opening a secured card with Public Savings Bank…hopefully it will help. I’ve known people who have come back from much worse so I am hopeful:)

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