$9.96 charge-off

[ctkf]

Hi, up until just a few minutes ago I had a credit score of 810. Now it is 699. When I got my alert this afternoon I immediately logged in to see what the issue was. It turns out there was a $9.96 charge-off from a bank that I have a checking account with that I NEVER use. I opened this account about 15 months ago and had long since forgotten about it. I had a service fee that I did not pay (the charge-off). I went to the bank a few minutes ago and they assured me that they would reverse the charge-off since I paid the debt. I am worried that they will show the charge-off as paid and not reversed. I asked for proof that they were going to reverse it and they said that the receipt was my proof. (Not sure I agree with them.) This charge-off didn't go to a debt collector or anything. Like I said, it is through a bank.

Anyway, assuming that they do actually reverse it...

1. When should it reflect on my credit score?

2. If they don't reverse it and just show it as paid, do I go back and ask them to reverse it or is it too late?

3. If they don't reverse it and just show it as paid, can I kiss my high credit score goodbye for the next 7 years?! All over $9.96???

I am just amazed that such as small amount has wrecked my credit!  Thanks for any help.

[guiness56]

HI and welcome to the forums.

Once an account is charged off they cannot reverse it.  It is an accounting term that indicates the status of the account.

They could remove the annotation from your CR if they chose to do so or remove the entire TL.

If they show it as paid the damage will remain the same. 

The only way to get your points back will be for them to remove the entire TL.  This is the route I would attempt.

[ctkf]

Hi, thanks for your reply. What does TL mean?

[guiness56]

TL - Trade line or account.

[ctkf]

Thank you. So then I guess I just have to sit back and keep checking my CR to see how they handled it? If I see that they showed it as paid off then I approach them once again and ask (beg) that they remove the TL?

The bank is open for 40 more minutes. Should I call them and ask specifically that they remove the TL? They did not use that term with me so this is all new. The girl used the term "reverse." I am just so nervous about this and want it handled the right way immediately if possible.

[guiness56]

I have never heard of a charge off being reversed. 

They can reverse the charges so maybe that is what she meant.  But, yes, you need it removed to get any points back.  Since it was actually an oversight on your part maybe they would agree to remove the account.

I would contact them, yes.

[ctkf]

OK, thanks so much for your help. I am going to tell them that my "friend" gave me some advice on how to handle this.  Take care and I appreciate your help.

UPDATE FOR ANYONE INTERESTED: I called the bank just a few minutes ago and told them I needed the trade line taken off. The lady who is in charge of this was already gone but the girl assured me this was not going to be an issue. She said that the lady in charge will call me on Monday to more or less assure me that things have been taken care of. So... *fingers crossed*

[guiness56]

Let us know what happens.  Good luck.