Charge off Question

[dfitzg]

Are charge offs suposed to be reporting as an open account ?


Creditor Name KAY JEWELERS
Account Type Charge Account
Account Status Open
Opened Date May 23, 2011
Payment Status Collection/Charge-Off

[Anonymous]

Read an explanation here: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Can-a-charged-off-account-show-as-open-again/...

[RobertEG]

The referenced account is a revolving charge card.

A CO is reporting of their internal accounting, while open or closed refers to your abiity to continue to charge on the account.  Apples and oranges.

While it may still be reporting as open, creditors dont normally permit consumers to continue to charge up additional debt on a seriously delinquent account that has been charged-off.  If you attempted to use it, the transaction would almost assuredly not be approved, indicating it is closed by creditor.

Techincially, FCRA 623(a)(2) requires that they should have promptly update when they closed the account.

Showing of closed by creditor is not a generally favorable statement upon a manual review, and I would not push to have it added.

You will gain nothing by getting it updated other than satisfaction of knowing your report is now accurate.  You could call informally or send a formal dispute if you wish it to be corected.

[dfitzg]

Im guessing my best option would be to just pay the outstanding balance ?

[Charger2014]

Can you say what the Orginal Creditor is? Is it for a collection agency? 

You could try Pay for delete if you have the money ...

[RobertEG]

It might be prudent to pay prior to their referral or sale to a debt collector, thus leading to the possible addition of a collection to your credit report........

[Anonymous]

Beating a dead horse here, but I also agree if you have the money try and settle it with the OC that way it's done and it doesn't go to a CA.