CRA policy, as set forth in their joint credit reporting manual, titled the Credit REporting Resource Guide, instructs furnishers to discontinue regular monthly updating no later than three months after a closed account has been paid, and thus is no longer delinquent.
That is an internal policy to reduce paperwork, as the updates no longer report a delinquency status, and thus serve no purpose.
However, if some information changes after the debt is paid, updated reporting can/must be made based on the requirment of FCRA 623(a)(2). Thus, the issue for updates of a paid, closed account is whether the update is necessary to correct the accuracy of any reported information, or whether it is simply a redunant repetition of the paid, closed status.
However, it is more an issue of formality than of substance once the debt is updated to show paid.
Updated reporting affects unpaid, delinquent accounts in that it is a positive statement that the account remains delinquent as of the new reporting date. It is thus not redundant, and has scoring impact by effectively extending the length or delinquency of the account.
However, once the account is paid, it no longer has a reported delinquency status, and thus updated reporting no longer affects scoring.
I would not necessarily recommend disputing updated reporting unless the account does not yet show a current status of paid.
