Re-Age Your Account - Get a Fresh Start
What is Re-Aging?
Let’s say that you are 3 or 4 months late on your payments. You then call the creditor and
they agree to wipe out any past due payments. In addition, they agree to forgive any
missed payments and stop any late fees and show that you are current with your account.
Pretty cool, huh?
Re-Aging is in essence a ‘do-over’. In other words, a creditor agrees to wipe out any late
payments from your credit history and they will agree to report the same to your credit
record.
Though it is possible to have your account re-aged, it may not be the easiest thing to do.
Federal Guidelines have been put into place that must be followed to regulate creditors
when they are considering accounts to be re-aged. Such as:
A creditor can only re-age an account once in a 12 month period and twice in a five year
period.
Let’s say that you are 3 or 4 months late on your payments. You then call the creditor and
they agree to wipe out any past due payments. In addition, they agree to forgive any
missed payments and stop any late fees and show that you are current with your account.
Pretty cool, huh?
Re-Aging is in essence a ‘do-over’. In other words, a creditor agrees to wipe out any late
payments from your credit history and they will agree to report the same to your credit
record.
Though it is possible to have your account re-aged, it may not be the easiest thing to do.
Federal Guidelines have been put into place that must be followed to regulate creditors
when they are considering accounts to be re-aged. Such as:
- Borrower must show a renewed willingness and have the ability to pay
- Account should be at least 9 months old
- Borrower must make at least three (3) consecutive monthly payments
A creditor can only re-age an account once in a 12 month period and twice in a five year
period.
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Not all creditors will agree to re-age.
Creditors are not obligated or
required to do so. Creditors reserve
the right to be selective when
re-aging an account.
It is imperative to remember that if
you get a creditor to agree to re-age
your account, you may only get one
chance to make good.
So please, if you approach your
creditor with a request to re-age
your account and they agree to
re-age, it is advised that you do
everything that you can to fulfill your
payment obligation.
Creditors are not obligated or
required to do so. Creditors reserve
the right to be selective when
re-aging an account.
It is imperative to remember that if
you get a creditor to agree to re-age
your account, you may only get one
chance to make good.
So please, if you approach your
creditor with a request to re-age
your account and they agree to
re-age, it is advised that you do
everything that you can to fulfill your
payment obligation.
Check and recheck your finances.
Make certain that you have a back-up plan if something should go wrong and you can’t
make a scheduled payment.
It is not often that you get a chance to completely wipe out a past mistake. Therefore, I
cannot stress enough that you stick to the payment plan.
If you cannot, do not bother to make the request to re-age your account.
When negotiating to re-age a past due account, be sincere in your explanation as to why
you became delinquent. Be specific as to the dire situation that you encountered that sent
your finances down a spiral and explain with confidence that you have your situation well
under control and that you are prepared to make things right with them if they can only give
you the opportunity to do so.
If your efforts are successful, ask that they put the agreement details in writing.
Date of payments due, amount to be paid, after ‘what payment number’ will your record be
cleared, the name of the person that made the agreement, supervisor or managers
authorized signature.
Don’t walk away without the agreement details in writing.
Many have made agreements on a handshake and unfortunately, weeks later, the person
that made the agreement has since been promoted, transferred, quit or were fired.
It is always best to have something in writing to prove your case.
If your creditor refuses to put the agreement in writing, then it will be up to you to document
everything that was said as noted above.
Send a letter to the attention of the supervisor or manager with the agreed upon payment
in the form of a cashiers check.
DO NOT SEND A PERSONAL CHECK AND DO NOT USE YOUR CREDIT OR DEBIT CARD!
Keep in mind that re-aging is a courtesy. A very BIG courtesy. Do not enter into a re-aging
agreement lightly.
Make certain that you have a back-up plan if something should go wrong and you can’t
make a scheduled payment.
It is not often that you get a chance to completely wipe out a past mistake. Therefore, I
cannot stress enough that you stick to the payment plan.
If you cannot, do not bother to make the request to re-age your account.
When negotiating to re-age a past due account, be sincere in your explanation as to why
you became delinquent. Be specific as to the dire situation that you encountered that sent
your finances down a spiral and explain with confidence that you have your situation well
under control and that you are prepared to make things right with them if they can only give
you the opportunity to do so.
If your efforts are successful, ask that they put the agreement details in writing.
Date of payments due, amount to be paid, after ‘what payment number’ will your record be
cleared, the name of the person that made the agreement, supervisor or managers
authorized signature.
Don’t walk away without the agreement details in writing.
Many have made agreements on a handshake and unfortunately, weeks later, the person
that made the agreement has since been promoted, transferred, quit or were fired.
It is always best to have something in writing to prove your case.
If your creditor refuses to put the agreement in writing, then it will be up to you to document
everything that was said as noted above.
Send a letter to the attention of the supervisor or manager with the agreed upon payment
in the form of a cashiers check.
DO NOT SEND A PERSONAL CHECK AND DO NOT USE YOUR CREDIT OR DEBIT CARD!
Keep in mind that re-aging is a courtesy. A very BIG courtesy. Do not enter into a re-aging
agreement lightly.
| Copyright 2005-2008 Debt Credit Learning Center |
God Bless.
Carlos Cruz
Debt Credit Learning Center
Carlos Cruz
Debt Credit Learning Center