Amex in Collections.?

Question

I have a American express that's in collections right now. Bank closed the account and I worked out a payment plan couple of months ago with the collections agency and I just have 2 more payment left to pay off the entire balance. My question is how bad will it hurt my credit and how long is it going to stay on my credit report? And Amex offered me another card called Optimo, they said it was for people with bad credit. Should I take that offer? I asked the collections lady what could I do to prevent it from posting on my report. Her reply was that its the cc company that reports the account as refusal to pay not the collections agency.

Thanks

Answer 1

The charge-off will stay on your credit report for up to seven years...in spite of paying it off....sorry.

At this point I think you should stick with secured credit cards..

Answer 2

The collector cannot remove what Amex is reporting, they can only remove what they are reporting - if they are reporting it.

Amex has a program called Oasis. The Oasis program is for those who had defaulted on their Amex card(s) and had paid off the defaulted card balances. The program is similar to a probationary period with Amex.

The Optima card is the card that is offered in that program. The credit limit on the Optima card is usually 1/2 the credit limit on the card that was defaulted on.

If you keep the account in good standing you should graduate out of the Oasis program somewhere around 6 months.

At that time you may(?) be offered a regular card or may(?) be approved for one if you apply.

Many people who have gone through the Oasis program have claimed that Amex had removed the older charged off accounts they were reporting from credit reports during that program period.

If Amex continues to report your old charge off you might try one or more of the following things:

Call Amex and ask to speak to their credit bureau department about removing the charged off account from your reports.

Send a goodwill letter to a higher up at Amex and ask them about removing the charged off account.

Dispute the charged off account that Amex is reporting with the CRA's.

Amex is also great about backdating the opening date on new products to the date a person first opened an account with them.

For example, if your first card with them was opened in 2002, then any future card you are approved for should reflect that date. (that does wonders for your credit history)

If the Optima card does not reflect the opening date of your first account with them, you might call them and request that they correct that date.

Amex is offering you a pretty good deal that would probably help your credit more than going with a secured card or subprime card with other creditors.

If you are still unsure about it then you might do some more research about their Oasis program.

One word of caution though - Amex is a huge company that has many different departments. It always seems that one department has no idea what another department does.

When calling them "always" keep meticulous notes about - the name of the person you spoke with, what department they are in, the phone number of the department (ask for phone numbers if you are transferred), the date and time you spoke with the person, the reason for the call and the outcome of the call.