Paid Charge Off----Help!

[Balkins]

Hi Friends,

Doing some research on my credit and find a "Paid charge off" from Bank of America. The paid charge off occurred in 8/13. I've been reading articles that say its best to leave it alone....and not kick a sleeping dog.

On the flip side, my Equifax score is 670, and i plan on raising that by paying down some cards.

Any opinions on "challenging" that "paid charge off?"

thanks for your help!

~B

[plog]

I'm confused about the issue.  Especially the use of the term "sleeping dog".  From your post it seems like either the dog is dead or doesn't exist at all.  Sleeping dog implies imminent threat if you wake it.  What's there to wake exactly?

I don't see the downside of challenging an incorrect mark on your credit report.  My gut says this is reporting correctly and you want to challenge it anyway hoping the company doesn't confirm it to improve your score.  Please explain the whole issue and your basis for challenging it. 

[Balkins]

Yes, that is correct. I had an issue with a loan with BOA and paid off a loan that was late. I would like it removed, but it was originally charged off. I settled and now it shows a 0 balance. However, it doesn't help my credit (obviously).

Had a Medical Issue that took priority over that loan, and my mothers health came first. ANYWAY, that's the way it goes sometimes (nothing i can do about it now).

Question is; can it be removed? I'm thinking no (sigh)

I'm confused about the issue.  Especially the use of the term "sleeping dog".  From your post it seems like either the dog is dead or doesn't exist at all.  Sleeping dog implies imminent threat if you wake it.  What's there to wake exactly?

I don't see the downside of challenging an incorrect mark on your credit report.  My gut says this is reporting correctly and you want to challenge it anyway hoping the company doesn't confirm it to improve your score.  Please explain the whole issue and your basis for challenging it.

[marty998]

Had a Medical Issue that took priority over that loan, and my mothers health came first.

Errr... I see you're trying to gloss over this, but this is the most concerning part of your post.

Does your mother not have enough to cover her own bills?
Are you paying your mother's bills when you don't have the capacity to pay your own?
What steps are you taking so you can pay all your bills in an emergency?

[Shor]

Had a Medical Issue that took priority over that loan, and my mothers health came first.

Regardless of the reason, no judgements here good or bad, fact was,
from the bank's perspective, the loan repayment was late and the amount was charged off.
You paying it back was a great start. You can now ask the bank to remove the derogatory mark from the credit report. You can give various reasons, better income, looking for a fresh start on your credit, previous debt burdens are now gone etc.
They might or might not do this depending on, primarily whether you paid off the original amount, and also the circumstances.
- For instance, a check being lost in the mail as a one-time event and then the balance being repaid timely, and cleared without problems can be easily overlooked. And usually is with a single phone call. World stuff happens, things get lost, perfectly reasonable, so long as it's not a repeat pattern.
- Oppose that to say repeatedly ignoring warning letters, fines being tacked on and scary pink final warning letters with no communication from you at all with the bank is generally a really bad sign for them.

There is nothing lost from asking the bank to remove the remark, and your success will depend on how well you handled the complication and a little bit in the soft skills (Keep in mind, they hear sob stories about the circumstances All The Time). If the bank agrees to remove the remark, it will be updated to the credit agencies via the normal route.
After the mark has been removed, if it doesn't update in the credit report, try to resolve it with the bank first (they don't always report to all 3 credit agencies every time)

However, you should not be going directly to the credit agency and asking them to remove the mark without trying to fix it through the bank.
The first thing the credit agency will do is to ask the bank, and the bank will be like "Nope, the account status is correct as reported. This guy was trying to mess with you!" and now everyone thinks you're trying to pull a fast one. I don't think there is any actual bad repercussion of this, except maybe a note in your file to say "this person tried to bypass the bank on so and so issue" (I don't know, I don't work at either agencies). I can only imagine it would make it harder to do business with either group if they put additional warnings on your file in such a way.

[Shor]

I'm also reading different statements from people.
Some say the mark can't be removed until after 7 years have passed, others had better success. The 7 year explanation might just be the excuse the bank gives out if they feel like your case does not qualify for a pass.

[Balkins]

Had a Medical Issue that took priority over that loan, and my mothers health came first.

Errr... I see you're trying to gloss over this, but this is the most concerning part of your post.

Does your mother not have enough to cover her own bills?
Are you paying your mother's bills when you don't have the capacity to pay your own?
What steps are you taking so you can pay all your bills in an emergency?

Nice. My mother passed after 2 yrs....that's how serious it was. I was the only sibling who cared...so there it is.

ANYWAY, back to the point.
"It is what it is" (as my mom used to say) and i'll leave it at that.

Thanks very much!

[vivophoenix]

a charge off that is four years old,  is not holding your score back,  I can tell you from vast experience.

what are you credit card balances, and what are the credit limits on those same cards?

[Balkins]

a charge off that is four years old,  is not holding your score back,  I can tell you from vast experience.

what are you credit card balances, and what are the credit limits on those same cards?

My Credit Card Balances are below 30% on 2 (interest free) cards and 0 on 3 cards. I got a mid-score of 670.

I discovered the problem after viewing my complete report today. (i broke down and paid for a full report).

I pulled the file and went over my notes on this issue. I have 3 medical charge offs. These charges are from

*11/25/09
*08/20/10
*12/22/10

3 Dr. Bills from an Urgent Care Visit were not paid by my insurance. I remember addressing this issue when the Urgent Care Center sent me the bills. I called my insurance company and they played the point-the-finger game. I then called THE STATE insurance commission and they got involved...and told me what I had to pay my deductible (which i paid at the time of my visit)....and what the insurance company was supposed to pay, etc. Apparently, the insurance company did not like the billing CODE the Urgent care center used. Big finger pointing game, (and i have been paying for health insurance for 20yrs) but that didn't matter. I still got stuck with the bill. The insurance company went bust (the state took it over) and i changed carriers. The three bills come out to bout 1k.

Anyway, what can be done at this point? Any suggestions would be appreciated. Thanks very much.

QUESTION: Are those charge offs supposed to be taken off after a certain period of time?




~B

[vivophoenix]

a charge off that is four years old,  is not holding your score back,  I can tell you from vast experience.

what are you credit card balances, and what are the credit limits on those same cards?

My Credit Card Balances are below 30% on 2 (interest free) cards and 0 on 3 cards. I got a mid-score of 670.

I discovered the problem after viewing my complete report today. (i broke down and paid for a full report).

I pulled the file and went over my notes on this issue. I have 3 medical charge offs. These charges are from

*11/25/09
*08/20/10
*12/22/10

3 Dr. Bills from an Urgent Care Visit were not paid by my insurance. I remember addressing this issue when the Urgent Care Center sent me the bills. I called my insurance company and they played the point-the-finger game. I then called THE STATE insurance commission and they got involved...and told me what I had to pay my deductible (which i paid at the time of my visit)....and what the insurance company was supposed to pay, etc. Apparently, the insurance company did not like the billing CODE the Urgent care center used. Big finger pointing game, (and i have been paying for health insurance for 20yrs) but that didn't matter. I still got stuck with the bill. The insurance company went bust (the state took it over) and i changed carriers. The three bills come out to bout 1k.

Anyway, what can be done at this point? Any suggestions would be appreciated. Thanks very much.

QUESTION: Are those charge offs supposed to be taken off after a certain period of time?




~B

below 30% is not good enough. they need to be below 10% for multiple months.

you should not have paid for a report, they are free everywhere now. sign up for credit karma.com

you got scammed, if you paid for a report.

it doesnt matter when you 'discovered it' 

2009 is seven years ago, but only paid items fall off. charge off means they are not pursuing it. so it might fall off if they do not decide to actively pursue again. i would not call them about this because since you have not paid it, the company can pursue this at anytime and reset this.

2010 is not seven years.

even if you pay these  today, your score will not go up.

you should have paid them when they first came due, and then re cooped the money from whomever.

gonna be real, if you only have three black marks from six years ago, and your score is 670, i bet you have some other things floating around, do you have loans?

late payments?

[marty998]

Had a Medical Issue that took priority over that loan, and my mothers health came first.

Errr... I see you're trying to gloss over this, but this is the most concerning part of your post.

Does your mother not have enough to cover her own bills?
Are you paying your mother's bills when you don't have the capacity to pay your own?
What steps are you taking so you can pay all your bills in an emergency?

Nice. My mother passed after 2 yrs....that's how serious it was. I was the only sibling who cared...so there it is.

ANYWAY, back to the point.
"It is what it is" (as my mom used to say) and i'll leave it at that.

Thanks very much!

I'm sorry for your loss, but with respect, you didn't exactly mention that. A 'health issue' could have meant a variety of different things.

Best of luck with cleaning up your credit.

[Balkins]

a charge off that is four years old,  is not holding your score back,  I can tell you from vast experience.

what are you credit card balances, and what are the credit limits on those same cards?

My Credit Card Balances are below 30% on 2 (interest free) cards and 0 on 3 cards. I got a mid-score of 670.

I discovered the problem after viewing my complete report today. (i broke down and paid for a full report).

I pulled the file and went over my notes on this issue. I have 3 medical charge offs. These charges are from

*11/25/09
*08/20/10
*12/22/10

3 Dr. Bills from an Urgent Care Visit were not paid by my insurance. I remember addressing this issue when the Urgent Care Center sent me the bills. I called my insurance company and they played the point-the-finger game. I then called THE STATE insurance commission and they got involved...and told me what I had to pay my deductible (which i paid at the time of my visit)....and what the insurance company was supposed to pay, etc. Apparently, the insurance company did not like the billing CODE the Urgent care center used. Big finger pointing game, (and i have been paying for health insurance for 20yrs) but that didn't matter. I still got stuck with the bill. The insurance company went bust (the state took it over) and i changed carriers. The three bills come out to bout 1k.

Anyway, what can be done at this point? Any suggestions would be appreciated. Thanks very much.

QUESTION: Are those charge offs supposed to be taken off after a certain period of time?




~B

below 30% is not good enough. they need to be below 10% for multiple months.

you should not have paid for a report, they are free everywhere now. sign up for credit karma.com

you got scammed, if you paid for a report.

it doesnt matter when you 'discovered it' 

2009 is seven years ago, but only paid items fall off. charge off means they are not pursuing it. so it might fall off if they do not decide to actively pursue again. i would not call them about this because since you have not paid it, the company can pursue this at anytime and reset this.

2010 is not seven years.

even if you pay these  today, your score will not go up.

you should have paid them when they first came due, and then re cooped the money from whomever.

gonna be real, if you only have three black marks from six years ago, and your score is 670, i bet you have some other things floating around, do you have loans?

late payments?

Shoulda, Woulda, Coulda. I paid for it, because i wanted it NOW and i wanted the credit scores. Its over...gotta move on.

No,...no other loans. Never late EVER, with credit cards (and i've had them for 20+ years). As i mentioned before, i had that LOC with BOA, that was settled and paid off a couple of years ago and its now reflected as a charge off with a 0 Balance.

A paid charge off will not improve my credit score...hmmm. So why bother paying it????

What leverage do collection agencies have?

[Balkins]

Had a Medical Issue that took priority over that loan, and my mothers health came first.

Errr... I see you're trying to gloss over this, but this is the most concerning part of your post.

Does your mother not have enough to cover her own bills?
Are you paying your mother's bills when you don't have the capacity to pay your own?
What steps are you taking so you can pay all your bills in an emergency?

Nice. My mother passed after 2 yrs....that's how serious it was. I was the only sibling who cared...so there it is.

ANYWAY, back to the point.
"It is what it is" (as my mom used to say) and i'll leave it at that.

Thanks very much!

I'm sorry for your loss, but with respect, you didn't exactly mention that. A 'health issue' could have meant a variety of different things.

Best of luck with cleaning up your credit.

It wasn't necessary to get into details until you insinuated the insult. No worries....its over, she's in peace. I'm sure she would want me to move on. Now i want to fix this issue. Thanks!

[LeRainDrop]

So why bother paying it????

Integrity.  You did receive the goods/services, right?

[Balkins]

So why bother paying it????

Integrity.  You did receive the goods/services, right?

LOL...did you read the thread? Haha....Integrity....you're joking Right. Go back and read please before making insults. Jaysus....

[LeRainDrop]

So why bother paying it????

Integrity.  You did receive the goods/services, right?

LOL...did you read the thread? Haha....Integrity....you're joking Right. Go back and read please before making insults. Jaysus....

Yes, I read the thread, and, yes, integrity.  If paying those off is not going to affect your score, then the only reason to bother paying them would be for integrity.  Again, you did receive the services, so then you're supposed to pay for them.  You may have a claim against the carrier, but it remains on your record for you to pay it off.

ETA:  Here, read this:  https://www.nerdwallet.com/blog/finance/medical-bills-on-credit-report/

[Balkins]

So why bother paying it????

Integrity.  You did receive the goods/services, right?

LOL...did you read the thread? Haha....Integrity....you're joking Right. Go back and read please before making insults. Jaysus....

Yes, I read the thread, and, yes, integrity.  If paying those off is not going to affect your score, then the only reason to bother paying them would be for integrity.  Again, you did receive the services, so then you're supposed to pay for them.  You may have a claim against the carrier, but it remains on your record for you to pay it off.

ETA:  Here, read this:  https://www.nerdwallet.com/blog/finance/medical-bills-on-credit-report/

Ok thanks. That article suggests i FIGHT the case. Well, i have the documents, but that doesn't mean JACK-DO-DO squat unless you are willing to MAN UP and pay an attorney (talking a few thousand MIN) to fight this in court. AND THEN, there's always the possiblity (since i did sign a document at the URGENT care center) that i would pay if the insurance company did not, etc. ITS not worth spending 1000's OF dollars and 100's of hours in time (yeah, that's what it would take IMO).

What surprises me is that the credit score would not improve...if i paid if off. I'm gonna double check that info.

Again, what leverage does a collection agency have? ALSO, i'm willing to bet that a collection account after 7yrs (or therebout) has to come off.

Best to you....

[LeRainDrop]

ETA:  Here, read this:  https://www.nerdwallet.com/blog/finance/medical-bills-on-credit-report/

Ok thanks. That article suggests i FIGHT the case. Well, i have the documents, but that doesn't mean JACK-DO-DO squat unless you are willing to MAN UP and pay an attorney (talking a few thousand MIN) to fight this in court. AND THEN, there's always the possiblity (since i did sign a document at the URGENT care center) that i would pay if the insurance company did not, etc. ITS not worth spending 1000's OF dollars and 100's of hours in time (yeah, that's what it would take IMO).

What surprises me is that the credit score would not improve...if i paid if off. I'm gonna double check that info.

Again, what leverage does a collection agency have? ALSO, i'm willing to bet that a collection account after 7yrs (or therebout) has to come off.

Best to you....

I think you're kind of missing the distinction between what the article recommends versus what it identifies as the other options available to you.  For medical collections that are old and nearing the 7-year mark, like yours, the article says, "This means that paying off the bill likely won’t improve your credit score — although it will get the bill collector off your back and remove the risk of being sued.  The best thing to do in this case is to be patient and continue good credit habits, like paying your other bills on time and keeping your credit card balances low. This will help your credit scores bounce back over time."  It does not recommend that you go back to the sleeping dogs to wake them up and pay them, but notes that while the collections remain open it is a risk the collector could sue you (though probably unlikely for such old collections).  It then goes on to give you options if the report is in error and if you want to fight it.

What this all comes back to is what some others here have said -- these very old medical collections, while they are negative marks on your credit report, do not have much weight in dragging your score down.  That's why people were asking if there were other issues with your report, such as many open accounts or a high utilization ratio, as those could be more likely factors in making your score lower than you'd like.  As it turns out, you do have fairly high utilization on a couple cards.  It may help your score to drop those utilizations to a lower percentage -- someone suggested less than 10%.

QUESTION: Are those charge offs supposed to be taken off after a certain period of time?

Yes, according to the Fair Credit Reporting Act, negative items must be removed from your credit report seven years from the first date of delinquency.  It sounds like you are very close to that for one of your medical debts and not much longer for the other two of them either.  http://www.bankrate.com/finance/debt/old-debt-fall-credit-report.aspx

[vivophoenix]

so pretty much everything I already said

its sounds like the OP wants an echo chamber so:


go nuts

call everyone and yell at them, then when that doesnt work, rail against the system about how unfair it is.



summary:
1) you have NO leverage to get these marks removed. they are accurate.

2) it is literally about to fall off your credit report

3) if you did get them removed early, they will not improve your score

4) pay off your credit cards, instead of tilting at windmills.

your score is low because you are using two credit cards >10% utilization, and I betting you arent paying large chunks off every month

why should anyone extend you more credit, you are showing you are already over extended?

[Balkins]

so pretty much everything I already said

its sounds like the OP wants an echo chamber so:


go nuts

call everyone and yell at them, then when that doesnt work, rail against the system about how unfair it is.



summary:
1) you have NO leverage to get these marks removed. they are accurate.

2) it is literally about to fall off your credit report

3) if you did get them removed early, they will not improve your score

4) pay off your credit cards, instead of tilting at windmills.

your score is low because you are using two credit cards >10% utilization, and I betting you arent paying large chunks off every month

why should anyone extend you more credit, you are showing you are already over extended?

(yeah...sometimes i need to hear things a few times before it sinks in)

Ok...thanks guys.

SUMMARY:
I'm just aggravated by the fact that i paid for Health insurance, the Urgent care center was listed as a provider, i paid my monthly insurance premium, YET was billed as if i wasn't insured. ALSO, got the state involved, division of insurance, they contacted the Urgent care center and informed them of the correct amounts due (which were paid by me then), yet it went against me. (sigh).

Oh well, moving along.

Yes, i will continue to work on those balances, and they will come down ASAP.

PS. Will those accounts just drop off after 7 yrs or do i have to do something else?

Thanks for your help.

[vivophoenix]

they should drop off.


if  you are super nice sometimes they will remove them 3 months early, if you call the credit bureau. or they may even remove it 3 months early on their own.


but trust me the credit card balance is what you want to focus on. five years ago i had a credit score in the mid 500's

i now have a 730.


i have been working really hard to turn  things aroung.

[Balkins]

they should drop off.


if  you are super nice sometimes they will remove them 3 months early, if you call the credit bureau. or they may even remove it 3 months early on their own.


but trust me the credit card balance is what you want to focus on. five years ago i had a credit score in the mid 500's

i now have a 730.


i have been working really hard to turn  things aroung.

Thanks vivo,

I called that collection agency last week and played dumb (i did it before joining the forum). i now know, it wasn't smart to stir up old issues. Anyway, they didn't seem too interested. I told them i would get back to them (its probably small potatoes for them) claiming ignorance of the bill. ANYWAY, i am moving forward. Will not contact them again.

ALSO, i learned something about HIPAA act and collections. Not sure if its true but, i read that if i go to the Hospital and enforce my HIPAA rights, the hospital cannot share my info with anyone. At that point, you contact the bureaus and challenge the issue. Since it cant' be verified, the collection is removed. Not sure if i should even bother, but i did think about it.

ANYWAY, thanks again for repeating your knowledge.

~B

[vivophoenix]

bro, you do not listen!


what hippa violation?!


http://blog.credit.com/2015/07/is-a-debt-collector-allowed-to-know-my-medical-history-120604/


you did not pay a bill that you were responsible for.

who cares about insurance or the government or aliens or big foot. until insurance covered it, you are responsible as a patient. your entire attitude of refusing to listen and choosing to only hear what you want, sounds to me to be the entire reason you are in this mess.


learn to listen. do not be stubborn, and pay your bills on time.

you are the reason why debt collectors and credit reports exist.

you did not pay
and when you are held accountable( a mediocre credit score) you try to weasel out.( trying to use hippa, blaming insurance, misreading internet articles. )

just go down with the ship

[LeRainDrop]

ALSO, i learned something about HIPAA act and collections. Not sure if its true but, i read that if i go to the Hospital and enforce my HIPAA rights, the hospital cannot share my info with anyone. At that point, you contact the bureaus and challenge the issue. Since it cant' be verified, the collection is removed. Not sure if i should even bother, but i did think about it.

No, don't do this.  Wherever you heard that from, they are just wrong.

[Balkins]

bro, you do not listen!


what hippa violation?!


http://blog.credit.com/2015/07/is-a-debt-collector-allowed-to-know-my-medical-history-120604/


you did not pay a bill that you were responsible for.

who cares about insurance or the government or aliens or big foot. until insurance covered it, you are responsible as a patient. your entire attitude of refusing to listen and choosing to only hear what you want, sounds to me to be the entire reason you are in this mess.


learn to listen. do not be stubborn, and pay your bills on time.

you are the reason why debt collectors and credit reports exist.

you did not pay
and when you are held accountable( a mediocre credit score) you try to weasel out.( trying to use hippa, blaming insurance, misreading internet articles. )

just go down with the ship

Alright dude...i heard you. "Why so much emotion about an idea????"

Dayum...!

gotcha....
btw thanks!