Product: Debt collection

Charter One Bank & Credit report issue : I received letter in XXXX related to this account. Based on my concerns, I met XX/XX/XXXX with an Account Specialist at Charter One Back in XXXX XXXX ( XXXX XXXX XXXX ), I believe her name was XXXX. She informed me that this equity loan could not be drawn against any longer. She told me it was not due in full and I could continue to make payment on it to pay it off. I had been paying $ 160/month, but increased the payment with Automatic withdrawal from my Charter Checking to $ 500/month starting in XXXX. 
I also had issue checking if payment were made and how much I owed due to not being able to see a statement on my Charter workflow. I asked ( sent requests ) about this statement issue several times and could not get good answer why. They would tell me due to status. 
After I set automatic transfer for the $ 500/month payment and did n't concern myself with this account and thought all was ok. This is what Automatic Payment is about, not having to check it monthly. In XXXX, I was collecting Tax information and asked about Interest paid on this account and was told it was in bankrupt status and no credit was being charged. I did ask why and they told me it was related to my Ex-Wife 's Chapter XXXX filing in late XX/XX/XXXX - XX/XX/XXXX. I did not know anything about this filing. I assumed since it was her bankruptcy it would not affect me and I agree to continue to pay off this loan. I requested to put it back on automatic payment & was told I could not and had to manually send Check in to Charter One. 
I received several Credit inquires letter for Auto loan were the bank said I was denied due to my credit report, so I requested a Credit Report and found this account in Charge Off Status! I attached the page were this is noted and you can see I was paying this through XXXX with auto withdrawal. The report states I was 90 days late while I was still paying, this is an issue. I did not know this at the time, but in XXXX, the auto transfer must have been stopped by Charter without my knowledge or notification. I do know see Fail to Transfer notes, but I see these types of notes out of Charters system and then the funds transfer, so I did n't think much about it. After 60 days of non-payment ( due to Charter stopping the transfers ), the account was put in Charge Off. Again, I was not informed of this issue back in XXXX, XXXX, XXXX, XXXX. 
I attached copy of transfer failure that I looked up after a realized that the payment were not really going through. 
My issue is with this account being put in this status without ever being called or a letter written to me. I attempted to pay Charter $ 500/month and the only reason you did not get paid, was because Charter 's own bank stopped these payment, not me!!! 
I requested this credit information be removed from my Credits Reports and this account re-established so I can set-up auto payments. I requested Charter One to understands my frustration with this and that I was always willing & attempting to pay on-time what I owed. 

About a week or so after I sent this request to help fix this Charter One issue, I received a call from a Collection Agency ( XXXX XXXX XXXX XXXX ) that stated that they were hired to collect on this Debt! They told me I had to end of the month to come up with ~ {$39000.00} payoff. I told them I did not have {$39000.00} laying around and what my options were, They said I could request a reduced payoff, so I offer 50 % which they did not accept, but did come back with an offer of {$22000.00}, so I accepted and borrowed money from my XXXX to pay this amount. Now I have both late payment on my Credit Report & loan payoff at reduced amount. I have never had a Credit issue on my report and now due to Charter One 's actions, my credit report & ability to get loans is effected, XXXX loan denied. 
Need help, XXXX