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Regular Contributor
Posts: 104
Registered: ‎10-26-2007
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How many charge off's can one account have???

How many times can a charge off be listed for a single account?  On my EX report, I have an account that has a charge off showing for every month for 24 months.  Shouldn't this only be shown once?  Would having this many CO's listed for a single acocunt have any effect on my score?   I have disputed the number of charge off's listed, I just wanted to see if any one else out there has run into this.
TU 673 EX (720 Credit score) EQ 690 (08/2009)
TU 698 EQ 697 EX ?? (07/2010)
Regular Contributor
Posts: 213
Registered: ‎09-28-2007
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Re: How many charge off's can one account have???

I was just about to come in and pose the same question.  I 3 accounts where they seem to be cCOd 2 and 3 time... 
 
eagerly waiting a response.  ANd if this is not right, waiting for a response on how to pounce on these evil no-gooders Smiley Very Happy
Regular Contributor
Posts: 204
Registered: ‎06-16-2008
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Re: How many charge off's can one account have???

As I understand it, an account with status CO is the major hit to your score. The fact that sometimes they show CO for more than one month is irrelevant. The relevant dates are:
 
DOFD - 7/7.5 years later it will fall off CR
SOL - time during which you can be sued if not PIFd
Date reported - for scoring purposes, a new date reported makes the 'baddie' look new
6/16/08 EQ-632
8/1/08 TU-717 EQ-690 EX-696
9/6/08 EQ-711
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Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007
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Re: How many charge off's can one account have???

jsk300,
 
What gordonbs posted is correct, with one minor point of clarification.
 
The fact that the account is reporting as a CO for several months in a row has no effect on your score in and of itself.  It is only the CO status that hurts your score, not the number of times that status has been reported.
 
The point of clarification is that FICO does not judge the recency of the CO by date reported, but by DOLA.  When a creditor reports CO every month, this does not affect DOLA.
 
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App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. Smiley Surprised )
Epic Contributor
Posts: 21,282
Registered: ‎03-19-2007
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Re: How many charge off's can one account have???

A creditor can only take that accounting measure once, as once they do so, they have removed the debt from the receivable assets side of their accounting ledger, and moved it to an uncollectible, non-asset.  Ergo, a one-time business loss and tax writeoff.

However, once haven taken that accounting measure, they can, when making future reporting, include that prior action as having occured.  That does not mean they have actually taken a new CO. If new dellinquencies are reported, or the debt is paid, the current status will no longer show CO, but the reporting of the CO itself remains, and can be shown in their updates, and is scored.

 

The actual date when they took their CO is not reported, as it has no relevance to credit reporting.  What they are required to report is the DOFD on the account within 90 days of reporting the CO.  That date, and not the date of the acutal accounting action or when they chose to initially report or continue to update, determines its CR exclusion date.

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