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FPB innaccurate reporting!!!!

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flinjami83
New Contributor

FPB innaccurate reporting!!!!

So I had settled an old account in exchange for a new credit line with First Premier Bank, it wasn't settled in full but it was settled. Question: Shouldn't they update that TL to reflect settled and remove the "charge-off" in the TL? 
When I called the 1st time a CSR told me to dispute thru the CB's and the TL would be deleted all together. So I did. It came back as "updated" and the "charge-off" is still showing.
So I called the credit dept and the lady told me that no matter what they will not remove a charge off. It will always say that even if the account was settled or PIF. She said they never ever remove a charge off b/c it "once was a charge off" and that they "follow the FCRA to the T!" 

 

I don't think it's fair to keep reporting it as a CO when it was settled. 

 

What should I do? It is scheduled to fall off in 12/2015 so is it affecting my score that much? It's also under Adverse Accounts.


Starting Score: 595 (2/22/13)
Current Score: FICO 624 (4/22/2014)
Goal Score: 700

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Message 1 of 7
6 REPLIES 6
guiness56
Epic Contributor

Re: FPB innaccurate reporting!!!!

Even if settled it will always be a CO.  It should say something like paid/settled after CO. 

Message 2 of 7
flinjami83
New Contributor

Re: FPB innaccurate reporting!!!!

Ok I just checked the dispute results with EX and status line says "Paid in settlement. $407 written off" is that ok? And also how much is this affecting my score since it's removing in 2 years? 

 

I think that is innacurate too b/c my bal was $477 and I paid $300, so they should say $177 written off right?


Starting Score: 595 (2/22/13)
Current Score: FICO 624 (4/22/2014)
Goal Score: 700

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Message 3 of 7
guiness56
Epic Contributor

Re: FPB innaccurate reporting!!!!

A CO is an accounting term.  It was CO'd before you settled so that amount is correct. 

Message 4 of 7
flinjami83
New Contributor

Re: FPB innaccurate reporting!!!!

Ok but shouldn't they update it with the most current info to reflect what has happened since the CO? I mean what if I go to apply for a mortgage and this old info is on there? Or will the loan officer understand this status???

It just feels inaccurate to me


Starting Score: 595 (2/22/13)
Current Score: FICO 624 (4/22/2014)
Goal Score: 700

Take the myFICO Fitness Challenge
Message 5 of 7
guiness56
Epic Contributor

Re: FPB innaccurate reporting!!!!

If it updated to show it was paid, that would be the most current information.  Them still showing as a CO willl never go away.

 

It should have a 0 balance and reflect paid. 

Message 6 of 7
RobertEG
Legendary Contributor

Re: FPB innaccurate reporting!!!!

+1

Look at the reporting of a CO as their posting to your credit file of the fact that they took an acceptable internal accouting action at some point in time.

If the CO was legitimate at that point in time, which basically requires that the debt was delinquent and they did not expect payment, then later status of payment or non-payment does not negate that action.

 

A consumer does not "pay off a charge-off," they pay off the debt that may have previously been charged-off.

Subsequent reporting of paid, or paid for less, reflects the status of the debt, not the charge-off.

 

The currrent status of an account that remains delinquent or has been charged-off reflects a derog current status.  Current status is just a Kodak moment of today.

Once paid, the current status shifts from a derog status to a payment status, but the prior derogs are all retained in the consumer's credit file under other codes

Update of debt balance to $0 is also required, which in addition to current status, informs readers that the debt is satisfied in full, regardless of the $$ amount accepted by the creditor as full satisfaction of the debt.

One viewing your CR would know to look past the current status if concerned with payment history on the account.

Message 7 of 7
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