Credit Card Center Advertiser Disclosure

Reply
Member
Posts: 5
Registered: ‎04-03-2013
0 Kudos

Charge Offs Still Reporting Past Due & Balance

Working on cleaning up my credit report and from what I've read on past threads here, charge offs that were sold to a collection agency should have a zero balance right? I'm showing multiple accounts that still show a past due/balance that were charged off. I disputed with the CRA's and they updated a few minutes ago, didn't change anything but added a note stating "amount in high credit is original charge off amount" There's a total of 11k from charge offs then another 11k of collections from those accounts. Am I missing something here!? Thankfully I've been successful in getting two collections removed with TX DV. Any insight is appreciated. Happy Friday!!

Starting Score: 540
Current Score: 569
Goal Score: 750


Take the myFICO Fitness Challenge
Community Leader
Epic Contributor
Posts: 29,735
Registered: ‎03-19-2007
0 Kudos

Re: Charge Offs Still Reporting Past Due & Balance

[ Edited ]

If the creditor still owns the debt, the reporting of a charge-off does not require any update of the debt balance to $0.

Update to $0 is required only if they sell the debt to another.

 

If the OC hires a debt collector to assist them in collection on the debt, the debt collector can also report, showing the amount they are atttempting to collect.

The OC account would also continue to show the current debt balance owed to them.

That is not double reporting of the same debt, as the OC reporting represents the debt balance, and the collection reporting represents the amount that the debt collector is authorized to conduct collection efforts on behalf of the owner.

Member
Posts: 5
Registered: ‎04-03-2013
0 Kudos

Re: Charge Offs Still Reporting Past Due & Balance

Thanks for the clarification. They were sold. What would you suggest my next step be after the CRA's do not update to $0?

Starting Score: 540
Current Score: 569
Goal Score: 750


Take the myFICO Fitness Challenge
Highlighted
Community Leader
Epic Contributor
Posts: 29,735
Registered: ‎03-19-2007
0 Kudos

Re: Charge Offs Still Reporting Past Due & Balance

Did you provde them a clear showing that the OC no longer owned the debt?

 

Alternately, you could contact the OC and remind them of their requirment (FCRA 623(a)(2)) to have promptly updated the balance upon their sale of the debt.

Hopefully, they will update without a renewed dispute.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.