[roivett]

I am new to this site and trying to improve my credit score. I have five negative items on my credit report as follows:

1). Capital One
Charge Off amt: $1748.00
Current Bal: $2577.00
Delinquent date: 11/2003

2). Capital One
Charge Off amt: $1865.00
Current Bal: $3390.00
Delinquest date: 10/2003

3). LVNV Funding LCC (former Providian Card)
Charge Off amt: $0
Current Bal: $7104.00
Delinquent date: 11/2003

4). Revolving Credit account-local lending company-non bank
Paid as agreed
81 month history with multiple 180 day late payments cited.

5). Local Hospital located in Alabama (Collections Account)
Charge off amt: $115.00
Current Bal: $115.00
Delinquent date: 06/2002 (this was for services rendered in 1999 to my daughter while I was vacationing in Alabama. It was to be paid by Michigan BC/BS. I never paid anything to the Alabama hospital and continued to refer them to Michigan BC/BS.

I am 61 years old and currently on SSDI and VA compensation as sources of income.

So here are my questions:
I am willing to offer settlement to Capital One but am concerned this will start the SOL all over again because they will then list these as “Paid Charge-off” that will remain on my report for another 7 years. Should I just wait for them to drop by SOL? Regarding the Revolving Credit account, can I ask them to eliminate their 81 month history and/or remove any negative connotation from their report? Would it be wise to contact the hospital to make a settlement and have the “collections” item removed, or argue that the delinquent date was in 1999 and it can be removed by the CRA?.

Thanks for all the great suggestion I have seen on this forum.

Roivett

[jlynn]

So here are my questions:
I am willing to offer settlement to Capital One but am concerned this will start the SOL all over again because they will then list these as “Paid Charge-off” that will remain on my report for another 7 years. Should I just wait for them to drop by SOL?

A payment won't keep it on your report for 7 more years, and Cap One , despite nobody liking them is usually accurate in that respect. However, you don't say what state you are in - at 4+ years old, these could be out of statue for lawsuit purposes. If your only income is SSDI, you are likely not a candidate (in their eyes) for a lawsuit. It might be best to let it alone.

Regarding the Revolving Credit account, can I ask them to eliminate their 81 month history and/or remove any negative connotation from their report?

You can always try, since you indicate its a local bank, you might have some luck. This account is not charged off? Is it still open? What's the current status of it.

Would it be wise to contact the hospital to make a settlement and have the “collections” item removed, or argue that the delinquent date was in 1999 and it can be removed by the CRA?.

I would dispute it with the CRAs as illegally reaged. At this point, I wouldn't use your limited funds to pay it off. It comes off next year regardless - its not hurting your score too much.

Thanks for all the great suggestion I have seen on this forum.

Roivett


On another note - did somebody pour mud on the site today? its sloooooooooow

[roivett]

Thanks for the feedback jlynn. In response to your questions, I am located in Alabama (since 2000). The local revolving account is marked "paid as agreed" and is closed since I paid it off in 10/2005 (but included late payments in their 81 month history). Regading the CapOne accounts, I am not too worried about lawsuits at this point as they cannot attach anything to my SSDI or VA income. I did hope that by paying it off I might get them to list is as "paid as agreed" rather than "Paid Charge-off". I don't know if they would be willing at this point. I will research disputing the Hospital bill as "reaged" with the CRA.

Thanks so much,
roivett

[jlynn]

Forget Cap One marking it as Paid as Agreed. It won't happen.

[roivett]

So, to what degree will a "Paid Charge-off" differ from a "Charge-off"? I have looked into the Alabama SOL and discovered a pretty good blog. It seems the SOL is kinda like a moving target. In some places the court will uphold the 3 year SOL for initiating lawsuits by "debt buyers". In other ares the CC is viewed as good as a writted contract and subject to a 6 year SOL. Remember the role that Richard Shelby played in the new bankruptcy laws a few years ago.

[jlynn]

It won't differ much, and because any payment you make will change the date of last activity - although it will fall off at the same time, FICO will pick up the new activity, and you would likely see your score fall.

[roivett]

So there is really a significant incentive to NOT repay a charg-off? It looks like my best action would be to put the money I was going to use to repay those charg-offs into a couple of secured CC's. Then wait for the CO's to drop off in a couple of years. This whole thing (the business of "credit") is such a mess.