6 year old charge off reporting as new and scores have dropped dramatically- Nissan Motor Acceptance

[Anonymous]

All, 

I have tried to find the answer to this question with no avail.  I have a old charge off with Nissan Motor Acceptance with a DOL as 11/2006.  This item has been on my credit reporting as a charge off since 2006 however once I started trying to repair my credit and disputed this item a few months ago, Nissan started reporting the charge-off every month.  My credit report shows the last payment made was 9/11/2006 however date updated is 12/18/12. Under 12/12, 1/13, 2/13 in the trade-line it reports "CO"  Before I disputed this account my credit scores were high 600's, NOTHING else has changed negatively on my report in 2 years - no new debt, no late payments, no credit inquiries.  My credit score has plummeted over 100 points and Nissan wrote me a letter stating each time I dispute it they will report it as a charge off.  My credit report analysis through my account with Wells Fargo Credit Protection states my credit scores are low because of a RECENT delinquincy and refers to Nissan.  This item will be over 7 years old at the end of this year, how is Nissan able to report this way so that this old debt is affecting my credit score as if it just happened? I know Nissan will have to remove the item at the end of this year but that does not help me today.

Thanks

[starry1]

Take that letter to a lawyer and sue the pants of Nissan. All joking aside, that is clearly abusive and illegal.

[guiness56]

They actually told you when you dispute they will report is as a CO?  Depending on what is going on, this could be considered willful negligence.

Without seeing the actual TL it is hard to make a definitive decision on what is happening.

Even if they reported every month, it should not cause your score to keep dropping.  Can you post a picture of the way it is reporting?

Nissan will not remove the TL, the CRAs will.

[Shogun]

I'd like to see the reporting of the TL also.  Is there a balance owed on this?

[RobertEG]

If the account was charged-off and remains unpaid, the current status would remain that of the last status, i.e., charged-off.

They are permitted to report current status at any time, informing others that it has not changed.

If the consumer disputes, they can assert that they are obligated to reflect their verification by reporting that the status remains unchanged, so I would not interpret their statement that disputing will result in reporting of the current status as a willful act of misreporting.

I dont see an issue of misreporting.

[starry1]

I think its worth fighting. I doubt there is any current case law on it and its CLEARLY malicious, they even told him so in writing.

[guiness56]

I think they are being malicious.  They wrote the OP a letter informing them that each time the TL is disputed they will report a CO.  To me that is like a threat. 

OP, why did you dispute the account in the first place?

[DaBears]

+1 on Guiness, why would you dispute a charge off? I would have not even bothered with it knowing it was coming off this yr.

[RobertEG]

Malicious means intent to cause harm.  Hard to prove intent.

If I were responding to such an assertion, I would respond that FCRA 623(a)(2) requires a furnisher to update information so as to maintain its accuracy.

When a consumer contests the accuracy, it is within the intent of that provision to post to the consumer's file a current status statement that updates the previously reported status to show that it is currently accurate and remains in effect, notwithstanding assertions to the contrary.

[starry1]

The letter they sent states intent.