JShidell
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09-06-202209:33 AM
09-06-202209:33 AM
Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services?
Hello,
I'm kind of in a pickle and would like some advice. I need to resolve some old unpaid charge-off credit card debt from Navy Federal Credit Union that is about 5 years old, which are due to fall off of my credit report in about two years. Here is my dilimia. I know i'm responsible for this debt and I want to take care of it, but I don't know how to approach this. I'm afraid of waking a sleeping giant for this debt, my SOL is 4 years since my home of record is Texas so I'm past the SOL so i'm not terribly concerned with getting slapped with a judgement for these debts, but has anyone had any success with setting up possibly a payment plan with NFCU for charge-off accounts, and if so does the clock restart on the old debt remaining on my credit report? Meaning if I start repaying my charge-off the 'last activity' i'm assuming will be updated and then the 7 year clock will start all over again. I can't wait two years to settle this debt it needs to be happen soon, but I also don't want to have to live anohter 7 years with the bad debt on my report. I'm also looking into debt relief programs (National Dedt Relief) to help, but not sure if that is the right direction. Has anyone had success with NDR with charge-offs?
Any suggestions and pointers would be of great help.
Thank you
v/r
JShidell
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gdale6
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09-06-202210:32 AM
09-06-202210:32 AM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
The 7 year period cannot be restarted, the DoFD is a set in stone date. If you want to ever get back into this CU you are going to have to repay in full and not settle for less. In any case you want to contact them directly and either settle in one payment or setup a payment plan with them. They will update it as its paid down.
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OmarGB9
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09-06-202204:47 PM
09-06-202204:47 PM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
The SOL and the 7 year reporting period are 2 separate things. Whether you pay this debt or not, it'll come off after 7 years. The SOL for being sued *can* potentially be reset, depending on state laws. Texas is my state, but I'm not sure on the laws regarding debt being restarted.
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TheKid2
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09-07-202206:04 AM
09-07-202206:04 AM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
Correct advice on legal above, so just want to jump in and say don't pay an outside service for something like this. You can't be "slapped with a judgment", you'd have to be served by the court first and then can negotiate a settlement at that time.
There's actually little risk in reaching out on a 5 year old CO and negotiating a settlement. You should get a good discount on the payoff, unless you're inclined to PIF. Not much incentive to PIF because the CO will stay on your report anyway and will be scored the same whether it's PIF or settled for less. The key is getting the past due balance to $0, which will have a positive impact on your score (assuming this is your only baddie). If it's reporting a CO every month, it will have a big impact on your score to settle it to $0.
JOINED 4/2020
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knight2
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12-17-202202:55 AM
12-17-202202:55 AM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
You wrote:
"If you want to ever get back into this CU you are going to have to repay in full and not settle for less."
Are you sure about that? So why do they send out those settlements letters?
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coldfusion
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12-17-202204:20 AM
12-17-202204:20 AM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
@knight2wrote:You wrote:
"If you want to ever get back into this CU you are going to have to repay in full and not settle for less."
Are you sure about that? So why do they send out those settlements letters?
He should be sure because he is correct. They'll settle on the principle that half a loaf is better than none but willingness to reinstate membership is reserved for those who make them completely whole again.
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pizzadude
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12-17-202209:17 AM
12-17-202209:17 AM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
@knight2wrote:You wrote:
"If you want to ever get back into this CU you are going to have to repay in full and not settle for less."
Are you sure about that? So why do they send out those settlements letters?
Agree, it's well known that to get back in with NFCU after burning them, you will be required to pay in full.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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IamWesty12
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12-17-202205:53 PM
12-17-202205:53 PM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
@JShidellwrote:Hello,
I'm kind of in a pickle and would like some advice. I need to resolve some old unpaid charge-off credit card debt from Navy Federal Credit Union that is about 5 years old, which are due to fall off of my credit report in about two years. Here is my dilimia. I know i'm responsible for this debt and I want to take care of it, but I don't know how to approach this. I'm afraid of waking a sleeping giant for this debt, my SOL is 4 years since my home of record is Texas so I'm past the SOL so i'm not terribly concerned with getting slapped with a judgement for these debts, but has anyone had any success with setting up possibly a payment plan with NFCU for charge-off accounts, and if so does the clock restart on the old debt remaining on my credit report? Meaning if I start repaying my charge-off the 'last activity' i'm assuming will be updated and then the 7 year clock will start all over again. I can't wait two years to settle this debt it needs to be happen soon, but I also don't want to have to live anohter 7 years with the bad debt on my report. I'm also looking into debt relief programs (National Dedt Relief) to help, but not sure if that is the right direction. Has anyone had success with NDR with charge-offs?
Any suggestions and pointers would be of great help.
Thank you
v/r
JShidell
@JShidellI am just adding my op but PLEASE do not pay an outside service for something you can do yourself. Those programs are a scam, sorry. They turn on a fan and spam all your collections in the hopes that one sticks. Waste of money AND time. Call yourself and either PIF or pay for less but get it in your rear view now. You do have time on your side regardless. Best wishes, keep us posted.
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rmduhon
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12-19-202211:48 PM
12-19-202211:48 PM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
As of 2019 the statute of limitations for debt can't be restarted for any reason
'If an action to collect a consumer debt is barred under Subsection (c), the cause of action is not revived by a payment of the consumer debt, an oral or written reaffirmation of the consumer debt, or any other activity on the consumer debt'
Texas Finance CodeSec. 392.307
@OmarGB9wrote:The SOL and the 7 year reporting period are 2 separate things. Whether you pay this debt or not, it'll come off after 7 years. The SOL for being sued *can* potentially be reset, depending on state laws. Texas is my state, but I'm not sure on the laws regarding debt being restarted.
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OmarGB9
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12-20-202209:31 AM
12-20-202209:31 AM
Re: Negotiate with Navy Federal Credit Union for charge off accounts or utilize Debt Relief Services
@rmduhonwrote:As of 2019 the statute of limitations for debt can't be restarted for any reason
'If an action to collect a consumer debt is barred under Subsection (c), the cause of action is not revived by a payment of the consumer debt, an oral or written reaffirmation of the consumer debt, or any other activity on the consumer debt'
Texas Finance CodeSec. 392.307
@OmarGB9wrote:The SOL and the 7 year reporting period are 2 separate things. Whether you pay this debt or not, it'll come off after 7 years. The SOL for being sued *can* potentially be reset, depending on state laws. Texas is my state, but I'm not sure on the laws regarding debt being restarted.
Good to know, thank you.
Last App: 1/10/2023
Penfed Gold Visa Card
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