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Chargeoff Question

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Shockedimpy
Contributor

Chargeoff Question

I disputed a charge off account that was over 3 years old. The dispute was complete 3 weeks ago, and per Credit Karma & Experian it was "removed". Today, I got an 21+ & 23+ point increase in my score, the alert via MyFico is this: 

 

DESCRIPTION: Consumer disputes this account information. Charged off account, account closed by credit grantor / Amount in high credit is original charge-off amount.

 

 

What does that mean? Im assuming it was removed permanetely due to the score bump? Or will it come back elsewhere? I did receive a call from an agency in behalf of Citi (Original Lender) trying to collect, but the agent told me they DO NOT report to the credit agency and I am confused if I should pay this company if they wont report it anyway. 

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1 REPLY 1
RobertEG
Legendary Contributor

Re: Chargeoff Question

I would speculate that the dispute was not contested by the OC because they have sold the debt, and no longer care about credit reporting.

They simply let the disute go unverified and sold the bad debt.

 

If they sold the debt, then the new owenr can report a collection. 

If they chooose not to report, then it wont affect your score, but that alone is not basis for not paying the debt.

They might, for example, bring civil action seeking a judgment.

Regardless, if you dont pay, you will still have an unpaid, delinquent debt that could become an issue with any future creditor.

 

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