Help! Midland collection change from Collection to Charge Off!!!

[C6Guy]

So this morning I'm checking my credit karma and saw my equifax take a 42 point drop. From what I can tell it looks like midland credit placed my old collection which is nearing deletion from the reports due to age as a charge off on my credit report. What can I do? I feel like they are effing me all over again. Need help!

[Anonymous]

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@C6Guy wrote:
So this morning I'm checking my credit karma and saw my equifax take a 42 point drop. From what I can tell it looks like midland credit placed my old collection which is nearing deletion from the reports due to age as a charge off on my credit report. What can I do? I feel like they are effing me all over again. Need help!

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If it's the same account, they can't keep it on your report for longer. The new record will stay on for just as long as the old one.

Whether or not what they're doing is legal/your recourse is another story, that I'm sure someone else will have more insight into. 

[RobertEG]

How specifically are they "reporting a charge-off""?

Are they updting to show that it was charged-off by a creditor, such as the OC, or are they reporting that they have taken a CO?
Do they own the debt?

[Anonymous]

I thought that as long as the Date Of First Deliquency hasnt changed and you havent made a promise to pay or made any payments to re-start the timer it should still fall off.

[C6Guy]

To add some more details, they are the owners of said debt. The way they were reporting the collection before was like an active account. Today when I checked my credit card it stated collection/charge off which would relate to a 42 point drop. From my understanding the debt would have expired 11/2015 from the reports. So I don't know what I can do to dispute this.

[Anonymous]

I have had that happen on my account everytime the debt was sold also and it would *appear* as if a new collection or CO *but* it was just re-assignment of ownership and change of status. The prior tradeline would go away with former owner and then this appeared on the report as if new, however it was the same account with the same original date of first deliquency. The DOFD is that egg timer starting the 7 year clock and unless they update/change that its isnt illegal as far as I have been able to tell.

[C6Guy]

From the looks at it Midland changed the status to charge off. I do have a few balanced reporting I hope that this does not end in adverse action. Oh god this is the worst thing that can happen? Am I helpless with this? Will it go away once the 7 year clock runs out?

ps it looks like they sent it to collections...so what can I do? If anything? 

[Anonymous]

Midland is the collection agency. It looks more like a tactic to ring your bell as the debt is about to fall off and get you to call in or a last ditch effort before they sell the debt to someone else. If you pull your own credit report you should see the account # ,  date it was first reported has remained unchanged and only the status changed along with the last updated date.

If they report it for > 7 years then that is against the FCRA and the CU will remove it, and they can be fined. 

[Anonymous]

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@C6Guy wrote:

From the looks at it Midland changed the status to charge off. I do have a few balanced reporting I hope that this does not end in adverse action. Oh god this is the worst thing that can happen? Am I helpless with this? Will it go away once the 7 year clock runs out?

ps it looks like they sent it to collections...so what can I do? If anything? 

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It's going to leave at the 7 year mark, despite the change in the status. There's no way for Midland to restart that clock.

You took a score ding since it looks new, but once it falls off you should recover.

[Anonymous]

As long as he doesnt enter any payment, payment agreement that should be the case right?

I thought that if you enter into a new agreement or make a payment on it then it can be reported as a new-debt or retoll the clock.