Charge Off - Paid In Full

[Issy_Sue77]

Hi Everyone! I am finally taking the steps toward repairing my credit  (Yay Me!)and I have been reading the questions on here for almost a month and they have been very helpful. This is my first post!!

I had a car loan with GMAC which turned into Ally. In 2010 I fell behind (60 days) on my payments due to being unemployed. On 9/24/10 Ally reported me as a charge off owing $2955.00, and on 9/29/10 I paid the balance in full. I didn't realize until recently that they reported me as a charge off, since I have the title. When I called today to ask about changing the charged off status I was told that once it is considered a charge off it always is, there is nothing that can be done. The rep at Ally said she can send me a letter stating that the debt was paid in full but I dont see what good that will do me when trying to repair/rebuild my credit. I guess my main question is.. Does this sound legit? Can it NEVER be changed or do they just not want to help me? Should I send a letter? Any advice would be greatly appreciated!

[gdale6]

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@Issy_Sue77 wrote:

Hi Everyone! I am finally taking the steps toward repairing my credit  (Yay Me!)and I have been reading the questions on here for almost a month and they have been very helpful. This is my first post!!

I had a car loan with GMAC which turned into Ally. In 2010 I fell behind (60 days) on my payments due to being unemployed. On 9/24/10 Ally reported me as a charge off owing $2955.00, and on 9/29/10 I paid the balance in full. I didn't realize until recently that they reported me as a charge off, since I have the title. When I called today to ask about changing the charged off status I was told that once it is considered a charge off it always is, there is nothing that can be done. The rep at Ally said she can send me a letter stating that the debt was paid in full but I dont see what good that will do me when trying to repair/rebuild my credit. I guess my main question is.. Does this sound legit? Can it NEVER be changed or do they just not want to help me? Should I send a letter? Any advice would be greatly appreciated!

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It should list as Paid was CO, they can change anything they want, I would just send a GW letter to the EO of ALLY asking for forgiveness. Welcome to the board and good luck on your repair journey

[guiness56]

For clarification, they do not have to report the CO status but they cannot change the fact that it is a CO.

[KellyP25721]

So if they changes the current status to "Paid in Full" instead of Charge-off or Paid Charge-off it helps?

[gdale6]

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@KellyP25721 wrote:

So if they changes the current status to "Paid in Full" instead of Charge-off or Paid Charge-off it helps?

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No, a paid CO is just as bad as an unpaid CO, getting it to report correctly as a Paid was CO is good for a manual review of ones credit.

[guiness56]

The CO status would have to be removed for it to help.

[Whitneyy]

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@guiness56 wrote:

For clarification, they do not have to report the CO status but they cannot change the fact that it is a CO.

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What do you mean by this?

[RobertEG]

Once a CO has been reported, it remains of record in the consumer's credit file.

When a delinquent account is paid, the current status becomes paid, but prior delinquency status is retained in a separate code called your Payment Rating, which retains its status prior to the snapshot current status.  Current status provides no prior historical status information, and is simply the stauts as of their last reportig.

Statements such \s "Paid, was a CO" or "Paid, was 120-late" relfect those two separate bits of info.

To get the the "was ....." design\ation removed requires deletion of the reporting of the "was" item.