Paid accounts still showing late status

[scoreclimber]

Hi all - I haven't posted much but am learning a lot from these forums.  I've searched the most requested threads but can't find one applicable in this situation.  I would appreciate any suggestions.

In February of this year, I paid off my car loan and a Beneficial finance account.  I had a few late pays on both before paying them off.  All 3 of my credit reports show a current status of 60 days late on the car loan and 30 days late on the beneficial loan.  My equifax credit report on my fico says the largest factor hurting my score at this point is a current serious delinquency (60 days).  Both accounts show a zero balance but are reporting current late status.  I disputed with all 3 and all came back that the current status is correct.  How can that be??  I understand my lates will stay on there, but can they legally report a current late status?  How can I currently be late on a $0 balance?

I'm thinking I should dispute directly with the companies (not the credit reporting agencies), mention FCRA, and demand the accounts show a current/paid/closed (any of the above, just not late) status as of 3/07.  What do you all think?  Can someone point me to an example of disputing directly with a creditor?

Thanks for any help you can offer!

[Anonymous]

I am in your same situation as well and have been curious about that too.  I have an old auto loan that I had a 30 day late payment on that is long paid off - balance showing $0 - that the status on my TransUnion report is showing as 30 days late.

Anyone got any advice for that?

[oogiemoo]

I have the same thing. I have disputed it with the CRA's. I haven't heard anything yet other than they are investigating. If I hear anything soon I will post and let you know.

[scoreclimber]

Well at least I'm not the only one.  Disputing with the 3 CRA's did nothing for me unfortunately.  It just irks me becasue everything else has been current for months but my score is getting dinged for innaccuracies. 

Hopefully someone will chime in with some suggestions.

[Anonymous]

Well, I'm currently disputing a couple of paid off items with EXPERIAN, which seems to be the worst. 

I disputed the item online.  Experian wrote back saying that the item had been verified.  (It was a judgment that I paid off in May.)  Apparently, when I paid the judgment in May, the accounting/collections department wasn't notified.  (Or, Experian did a poor job of confirming the debt -- i.e., they lied about confirming the item.)  The revised report clearly states:  "verified debt in Oct. 2007."

I sent a letter to Experian (certified, return receipt requested) disputing the validity of the report pursuant to The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq. and requesting the method of verification (MOV).  Enclosed with the letter was the release of judgment lien as filed with the Dallas County Clerk and a letter from the company acknowleding the payment of the debt.  I also sent copies of the letter and attachment to the original creditor and to the Texas Attorney General.  (You never know if and when your state is investigating practices of credit reporting bureaus, so why not let them know what's going on; it will at least be read and put in a file someplace for future reference, and this might make it easier for them to contact you in the event of a class action suit/settlement.)

Experian will have to correct the item, and I expect to hear back from them within 10 days with the item corrected.

In the meantime, I looked closer at that item on my credit report, and I noticed that it was about $1,000 less than the original debt.  (After the judgment had been filed in Dallas County, I continued to make payments and a deposit I paid had been withheld from me and applied to this original debt - by the way, I now don't recommend doing this.)  I began to wonder if perhaps my payment of the judgment did not include credit for these payments.  So, I sent a separate letter to the original creditor discussing this issue and requesting that my account be reviewed for possible OVERPAYMENT by me.  I sent a copy of this second letter to the Texas Public Utility Commission, since it involves an electric service provider.  I MAY ACTUALLY GET A BIG REFUND FROM THE ELECTRIC COMPANY!!!  And I never would have even thought about requesting this refund if it weren't for the incorrect reporting on my credit report!

So, sometimes good things can happen when an item continues to be reported incorrectly.  Explore all your options.  And when you pay a debt, particularly if you pay it completely, make sure you get a receipt and a letter AND PUT THEM WHERE YOU CAN FIND THEM.

[Anonymous]

I have the exact same thing going on with Nissan (NMAC).  Paid it off in Feb 07 and in Aug 07 they reported that I am currently 30 days late.

[Anonymous]

Even when PIF or making correct payments...all late payments stay on CR 7 years. Send GW letters.

[haulingthescoreup]

DH and I have an old gas card that we closed in 2004 (dumb, dumb--it was opened in 1987.) The last payment was late, and so that's how it shows on EX: Paid, Closed/ Past due 30 days. I asked the account rep at EX about this, and she said, yes, that's how it's supposed to look, and that it doesn't say that it is currently delinquent, just that the last payment was late. And for what it's worth, the comments on my FICO scores say that I have 0 delinquencies. Hope potential lenders understand the difference!

Meanwhile, since it stopped reporting in 2004, that last stupid square shows as yellow instead of green. And there it will be for 4 more years.

[Anonymous]

I think what we are all talking about is the STATUS part on the credit report.  Even if you have late payments, if the account is paid in full, the STATUS will read "OK".

I know on mine, for the auto loan that I had one late payment on that is long been paid off with a balance of "0", the STATUS still reads "30 days past due" instead of "OK" or "Current".

[scoreclimber]

That is exactly what I'm talking about Elexi.  I understand that any late payments up to and including 2/07 will stay on my CR for 7 years.  What I have an issue with is that they are reporting in 9/07 my status is 30 days late (or 60 days late for the other account).  I wasn't 30 days late in 9/07 because there was no payment due in 9/07 since they account has had a $0 balance since 2/07.  I'm not asking for the accurate lates  up to 2/07 to disappear (although that would be nice) - I just want it to reflect the correct current status of paid/closed, NOT a current status of 30/60 days late.

Sounds like many people have this problem, has anyone ever taken up the issue directly with the creditor?  It seems like inaccurate reporting to report a current status of 30 or 60 days late to the Credit Bureau when it's been paid off for months.

Am I nuts?