How to Handle SOL OCs reporting inaccurately

[lambrusco100]

Hi there,

I have HSBC, Tribute and First Premier reporting negatively on my CRAs. The debts show up as "bad debt/collections", with 90 days past due" statuses but do not say "charged off". But I know they are because the JDBs are also reporting on my CRAs for the same accounts. Since they are all SOL, I DV'd the JDBs via CMRR but I do not know how to handle the OCs. Any advice?

Thanking you all in advance!

[RobertEG]

Not sure why you would want the OC to additionally report that they charged-off the debt.......?

A charge-off is an internal bookeeping measure taken by a creditor when they consider a debt to have become "uncollectible," which the tax code then permits them to claim as a business loss.  It's reporting to a CRA is optional, and does not relieve a penny of debt oblitation. Lack of its reporting is not an inaccuracy.

I places in the consumer's file the addtionall statemeent that the consumer is not expected to pay the debt.  Never a favorable comment, and becomes an additional major derog in credit scoring.

What is your reason for wanting it reported?

[azguy13]

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@RobertEG wrote:

Not sure why you would want the OC to additionally report that they charged-off the debt.......?

A charge-off is an internal bookeeping measure taken by a creditor when they consider a debt to have become "uncollectible," which the tax code then permits them to claim as a business loss.  It's reporting to a CRA is optional, and does not relieve a penny of debt oblitation. Lack of its reporting is not an inaccuracy.

I places in the consumer's file the addtionall statemeent that the consumer is not expected to pay the debt.  Never a favorable comment, and becomes an additional major derog in credit scoring.

What is your reason for wanting it reported?

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You definitely do not want a Charge Off reporting. My score dropped by 40 points when I had a charge off reported in 2008. Other than BK and possibly a federal tax lien, a CO is the worst that can be reported. 

[lambrusco100]

Hi RobertEG,

My thought was that by the CA consistently still reporting statuses of "90 days past due" with a balance was hurting me more than it would if it said "charged off/paid" with a zero balance. Okay, rookie mistake then. My other thought was that the inaccuracy might be an avenue in which to dispute it in an attempt to have it removed, but now I see that shouldn't even be a consideration. I'm trying to effectively clean up all the negative items in hopes of getting my score up a few more points to qualify, which is why I DV'd all the junk debt buyers. I realized I didn't have a strategy to deal with derogatory OC items. My middle score is too low (TU 613, Exp 613, Equi 647). 

[lambrusco100]

Azguy, thanks for the feedback! Whoa... that's clearly the last thing I want to do, then.

[RobertEG]

Yes, when a dispute is made over an inaccuracy in reporting, the furnisher always has the option of correcting the inaccuracy.

Deletion is only required if they fail either to verify what they reported as being accurate, or to correct the inaccuracy, and any deltion only applies to the specific information that was disputed as inaccurate.

Even if the information is deleted for failure to verify, they can provide verification at a later time and have the information reinserted.