Can a creditor continue to report lates after a CO?

[Datx]

I'm helping my brother with his credit. So far, I have gotten 3-4 baddies removed for him, and he has only a few more items to go. One thing that really sticks out to me is a Chase account. The account is charged off, but EQ continues to post 180 day lates on his credit report just about every month. Here is how it reports on his actual EQ report:

Date of Last Payment is 12/2007

Date of 1st Delinquncy is 5/2007

Date Closed is 2/2005

Account is charged off, Account closed by Credit Grantor.

And here is how the Account History looks like:

6/2007: 30-59 Days Past Due

8/2007 - 1/2008: 50-89 Days Past Due

2/2008: 90-119 Days Past Due

3/2008 - 3/2010: Charge Off

4/2010 - 3/2012: 180 Days Or More Past Due

Just a note, I listed the dates above of how it shows using date ranges. On his actual CR, it lists each date seperately with the reason codes. So for example, from 3/2008 through 3/2010, there are seperate credit entries on his credit report for each month showing the account is charged off. Its like they are reporting charge offs every single month making it look like he has a new charge off. Then after they were done with reporting charge offs every month from 3/2008 through 3/2010, they started to report that he was late with 180 days or more past due from 4/2010 through 3/2012...and again...every month. This just doesnt look right to me at all. Is this right for them to do this?

[RobertEG]

Yes.

All a charge-off really means to the consumer is that the account is no longer listed in their internal accounting ledger as an account receivable.

It is their internal bookeeping, and not a "charge-off" of the debt in any manner vis-a-vis the consumer's continuing obligation.

It does not affect the obligation for the debt, terms of the account, or ability to continue to report a consumer as not meeting those terms.

For all intents and purposes, reporting of a CO simply means you received an additional adverse mark.  All else continues as usual.

A charge-off is a one time event.  However it can be included as part of prior history in subsequent monthly "updates," making it appear as if a new CO.

It is not.

[MarineVietVet]

I agree with Robert. Lates can be reported each month until the CO is either paid off or sold.

[Datx]

Ok, thanks for the help guys. I'll get him to call Chase and pay off the account. The amount is small and certainly not worth worth the damage its doing to his CR thats for sure.

[RobertEG]

Be aware that paying does not result in removal of the adverse item from his credit report.

Are you familiar with the PFD process?

[Datx]

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@RobertEG wrote:

Be aware that paying does not result in removal of the adverse item from his credit report.

Are you familiar with the PFD process?

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Yes, I sure am. However, I never been able to get an OC or a CA to agree to a PFD.  I have been more sucessful at satisfying the debt first, and then asking for a GW deletion.

[golo]

Wow! I'm going tru the same with Sears/CBNA, i think that my score tanked this month cause of it.It was in dispute and when i got the comments removed it shows as they have been reporting for the last 52 months!  It lowered my score 24 points crippling my hopes of applying for a mortgage for good, 

If they continue reporting and updating FICO see it as a new miss payment and therefore lowering my score even more every month? Is that even legal? I'm in shock and getting desperate.Thanks in advance.

[MarineVietVet]

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@golo wrote:

Wow! I'm going tru the same with Sears/CBNA, i think that my score tanked this month cause of it.It was in dispute and when i got the comments removed it shows as they have been reporting for the last 52 months!  It lowered my score 24 points crippling my hopes of applying for a mortgage for good, 

If they continue reporting and updating FICO see it as a new miss payment and therefore lowering my score even more every month? Is that even legal? I'm in shock and getting desperate.Thanks in advance.

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FICO looks at the worst delinquency which is the CO. The monthly lates will not make the situation worse.

[Datx]

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@MarineVietVet wrote:

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@golo wrote:

Wow! I'm going tru the same with Sears/CBNA, i think that my score tanked this month cause of it.It was in dispute and when i got the comments removed it shows as they have been reporting for the last 52 months!  It lowered my score 24 points crippling my hopes of applying for a mortgage for good, 

If they continue reporting and updating FICO see it as a new miss payment and therefore lowering my score even more every month? Is that even legal? I'm in shock and getting desperate.Thanks in advance.

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FICO looks at the worst delinquency which is the CO. The monthly lates will not make the situation worse.

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Even if the monthly lates are newer than the CO?  Like in my brother's case, a newly added 180 day late in April 2012 will not do more harm to his CR?

[MarineVietVet]

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@Datx wrote:

 

Even if the monthly lates are newer than the CO?  Like in my brother's case, a newly added 180 day late in April 2012 will not do more harm to his CR?

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No. The CO is what is scored.