Is this legal

[niecy357]

 I was laid off in 2011 and had a charge off from Navy FCU 13,000 and 12,000. I spoke with their lawyer who agreed to take 250.00 a month and stop litigation. As of today I paid down 5,000 +. My question is technically can this be listed as a charge-off if I am still sending payments to NFCU? Should this be updated on my credit report? The credit reports are showing the original charge off amount and not the current balance. I disputed this with Experian but wondering if I am opening a can of worms because my score is finally increasing from 462 in 2011(shortsale on house) to Ex 640 EQ 637 and TU 656 all fico pulled.

Thanks for your input!

[Leadberry]

You may want to post this in the "Rebuilding Your" Credit forum.  The posters there will be better prepared to help you.

Edit:  Also, while you may be paying, the account was still charged off and I don't see any issues with NFCU listing it as so.  If anything, the law required them to do so in the first place.

[gdale6]

It should be listing as CO now pay, if not I would dispute it.

[guiness56]

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@niecy357 wrote:

 I was laid off in 2011 and had a charge off from Navy FCU 13,000 and 12,000. I spoke with their lawyer who agreed to take 250.00 a month and stop litigation. As of today I paid down 5,000 +. My question is technically can this be listed as a charge-off if I am still sending payments to NFCU? Should this be updated on my credit report? The credit reports are showing the original charge off amount and not the current balance. I disputed this with Experian but wondering if I am opening a can of worms because my score is finally increasing from 462 in 2011(shortsale on house) to Ex 640 EQ 637 and TU 656 all fico pulled.

Thanks for your input!

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Yes, once it is charged off, it will always be a charge off.  They do need to report your payments but do not have to list as paying as agreed or anything like that.

A CO cannot be paying as agreed.

[niecy357]

I want to be clear. I am paying the original creditor NFCU.  The balance should be decreasing if I am making regular payments since 2011? It is showing co 2012?

Thanks for your input

[niecy357]

I understand once charged off it says but the balance should change if I am paying the original creditor? This account was never sold.

[guiness56]

Yes, they should be updating the balance.

[CreditUnionFan]

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@niecy357 wrote:

 I was laid off in 2011 and had a charge off from Navy FCU 13,000 and 12,000. I spoke with their lawyer who agreed to take 250.00 a month and stop litigation. As of today I paid down 5,000 +. My question is technically can this be listed as a charge-off if I am still sending payments to NFCU? Should this be updated on my credit report? The credit reports are showing the original charge off amount and not the current balance. I disputed this with Experian but wondering if I am opening a can of worms because my score is finally increasing from 462 in 2011(shortsale on house) to Ex 640 EQ 637 and TU 656 all fico pulled.

Thanks for your input!

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As others have posted, it's an R9 (Charge Off) because it reached the R9 state. It will stay as a R9 until the balance is paid in full, at which point, unless you ask otherwise, it will become an R9P and will remain as a negative for the remainder of the seven years or as permitted by applicable law.

[RobertEG]

View their reporting of the charge-off as their statement at a prior point in time that you were not expected to pay the debt.

That fact does not subsequently change due to later payment of the debt, which remains fully obligated until paid.

The reporting of the amount charged-off is prior history, and does not change based on subsequent reduction of the debt.

The current balance is very different.  It a snapshot of the remaining debt balance at the time of their last reporting.  It reflects no prior history.

The creditor is obligated under FCRA 623(a)(2) to promptly update the current balance as it is reduced to reflect its current accuracy.

If they are not promptly updating the current balance, you can send them a direct dispute of its current accuracy.

Prompt updating would logically be in their next regular reporting after receiving a payment.

How much they reported as the CO would not require update.  It is history.

[niecy357]

Thanks so much for your information. This has really helped me. I already disputed the balance amount because it is making my debt/income ratio 81%. Another question will this change the date of last activity, making it look as though it is a new charge-off every time they update the balance? This was charged off 2012