01-28-2013 06:34 AM
My credit report shows 2 negatives. One from the origianl debt owner, and another from the collection company that now owns it. I just paid of the debt through the collection agency. Will both negatives be updated to PAID? Will the original be changed from Charged off to PAID?
Another question is i noticed a fingerhut negative on my CR. I called them to verify and was told it was owned by jefferson capital. I called Jefferson, and was told i paod the debt in June of 2011. What can i do change the Fingerhut from Charged Off to PAID? Do i contact Jefferson or Fingerhut? I placed a call to fingerhut but they keep on refering me to Jefferson. I am not sure if they are giving me the run around or not.
01-28-2013 09:00 AM
The CA is supposed to notify the OC when the debt is paid. The OC will still list as a CO but show a paid CO. Since the OC doesn't own it, it should be showing a 0 balance and say transferred/sold.
Is Fingerhut showing a 0 balance? If they sold the debt they are supposed to.
01-28-2013 09:37 AM - edited 01-28-2013 09:39 AM
A charge-off itself is not actually updated to a status of "paid." The debt is updated to paid, $0 balance by the creditor, and the amount remaining under collection is updated to $0 by any debt collector.
A charge-off is an internal bookeeping action taken by a creditor at a point in time. The ultimate status of the debt does not alter the fact of that prior action having been taken and reported. It is still accurate credit history that reflects in your scoring.
The same applies to collections or any other derogatory item posted to your CR.
They remain, and are still scored after payment of the underlying debt. Their scoring impact declines with time at some rate known only to FairIsaac, until the credit report exclusion period for the item has passed, or the furnisher of the information voluntarily deletes it.
01-28-2013 09:51 AM
Thanks for the replies. I looked over the CR's again and found that even though the status is CHARGED OFF the balance is 0. Its beginning to make sense to me. I still am trying to familiarize myself with the CR's and understand them. I called fingerhut and they said they are not able to update it to PAID or settled. Jefferson who bought the debt will confirm on the phone that the debt has been paid. However, they cannot or will not send a letter saying it has been paid. Am i correct to assume that if the balance shows 0, it was paid through another collection agency? I have one last debt on my CR's that is showing 0 balance but with a status of CHARGED OFF. Also, what if the recent balance shows N/A? I have a couple of those on my Experian. Thanks in advance.
01-28-2013 01:30 PM - edited 01-28-2013 01:31 PM
When a creditor sells a debt, regardless of whether they charge it off prior to its sale, they must report a $0 balance, as no debt is therafter owed to them.It does not reflect that the debt was paid.
The current OC account status thus reflects the status of account delinquency when sold. If they had been paid, then they would have been required to additionally update the status to reflect its satisfaction, but that does not appear to be the case.
Once the OC sells the debt, their reporting obligation ends with updating the balance to $0. They are not a party to whatever happens to the debt thereafter, and have no obligation to track the subsequent acts of others or report a payment not made to them. If the purchasing debt collector has not reported their collection to a CRA, they of course have no reporting obligation, so your CR alone will not reflect the ultimate fate of the debt.
You can, of course, ask the debt collector to report their collection, and a current status of paid, $0 balance, and thus get the satisfaction of the debt recorded in your CR, but the reported collection would be an additional major derog. Not a good idea.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.