Charge off still reporting payment history past due

[Jayla127]

In the past, I had some bills that were charged off because financially I couldn't pay them. The account was opened in Sept 2012; last activity was June 2013. Credit limit was $500; high balance $938.00. I noticed in the payment history it's still reporting past due as of Feb 2017 - 120+ days late. How much of an impact is this having on my credit score? Also, is there anything I can do to fix this? I don't receive any calls from collections agencies. Is this ok for them to do? Thanks for the help.

[jdxprs1]

sounds like what capital one does to people. yes they can do it. its probably costing you about 50 points on your fico score. only thing you can do is pay them usually. never hurts to ask them to delete it in exchange for paying. also, after you pay, you can always write them lots of good will letters aasking for deletion.

[Jayla127]

If I ignore it does it eventually fall off the account. If not, I will call them to see what can be done about paying it off? Once this is done, how should the account report? Will my credit score take a hit once the account is paid off? Also, I have never written a good will letter? Is there a sample letter I can look at?

[RobertEG]

Reporting of a charge-off is a statement by the creditor that they have taken an accounting measure of moving a debt that is delinquent at the time of the charge-off from the receivable asset column in their accounting ledger to the bad debt column.

Taking of a charge-off does not remove continued obligation of the consumer for the entire debt, and does not end its delinquency status.

Many creditors will cease reporting of continued monthly delinquencies after a CO, and thereafter report the current status as charged-off, which by definition is a delinquency current status.  However, they can continue to report the level of monthly delinquency as the updated current status. It is their option.

If the consumer pays a debt that has been previously charged-off, the reporting of the CO remains under the payment history profile, and is additionally retained in a code called the Payment Rating.  The Current Status of a paid account will no longer show a delinquency status, but the CO is still retained and affects scoring.

Paying of the debt does not remove the impact of reporting of a CO, but it thereafter prevents the current status from being updated as a continued delinquency status.

Update of current status to show continued delinquency does affect scoring.  Paying ceases that updating.

Removal of the impact of a reported CO requires either that the CO pass its exclusion date of no later than 7 years plus 180 days from the DOFD, or that the creditor decides to voluntarily delete that reporting prior to its exclusion date.