Charge Off Question

[MrTom]

I have 1 charge off remaining on my reports

Capital 1, charged off in March 2015.

Paid off March 2017, status updated to Charge Off, Paid in Full.

What date is the charge off from??

Wells Fargo underwriting denied me for a HELOC.  The lady on the phone told me it was for a charge off.  The lady told me that they don't approve loans for any charge offs that happened in the last 2 years.  I told her that it was from 2015 the charge off and she said the underwriter says it was from March of this year, sorry thats what the underwriter reported.  Its almost if I was punished for havig paid a charge off (scratches head....confused look)...a charge off is bad, but a paid charge off is better then an unpaid charge off (dazzeled look in face).  If I pay a charge off, it has a negative effect (confused)?  Does a charge off date refelect the status date? (This would be the most logical answer, but not 100%).

Can someone explain how March 2017 is considered to be the CO date?

I want to challange Wells Fargo on this.   But I need to know if I'm right and they are wrong before poking the bear.

[RobertEG]

There is no provision for reporting of when a charge-off occured.

All that is reported is that the creditor has taken that accounting measure at some prior time.

Reporting of having taken a charge-off then triggers the requirment under FCRA 623(a)(5) to report the DOFD to the CRA no later than 90 days after having reported the charge-off.

If someone requires the actually date that a creditor took that internal accounting measure, they cannot obtain it from their credit reporting.

All they can obtain from their reporting iis that the charge-off occured at or prior to when it was reported.

They can, of course, contact the creditor for more info, but that is something outside of credit reporting.

[MrTom]

So any ideas where an UW got March 2017 from?

If an adverse action letter is received, am I allowed for further explination if requested or do I get is just the generic codes?

[rmduhon]

They got March 2017 from the fact that when you paid the account it updated to paid. But I don't know why they are saying that March was the CO date.

[MrTom]

I guessed the same thing, but tell me why the UW picked this date as the CO date.

[RobertEG]

They are likely simply making the assumption that the reporting date is the charge-off date since they cannot determine when the actual CO occured.

That would assume they reported the same date they did the CO, which is unlikely.

Call and confirm that their underwriting requriment is actually that no CO was reported within the last two years, and not that it was actually taken within the last two years.

They have no way, absent a statement from the creditor, of making a determination of when the CO was taken.

[Anonymous]

I am not sure if a paid charge is treated better than one that is not.  The status "charge off" is the baddie.  For the debtor, having it paid gives some bargaining room. So you could contact the creditor and ask them to delete it as a courteousy.  You don't challenge your current lender on this. You work with them.  Ask Capital One to remove the charge off since it was paid. (only cost a little time to ask).  If no luck, you could challenge based on incorrect date. Make mortgage lender aware of your plan and see if they will committ to move forward if corrected.  Good luck!