I have been rebuilding my credit for 3 years now. I have my FICO score up from 550 to 653. I paid off all my collection accounts besides Geico 3 years ago. Since then I have received 4 credit cards and a 344,000 conventional 30 year mortgage. My problem is that Geico/Merrick is still on my report as Charge Off. It reports every month as a new charge off account so it looks new everyone which keeps my score from going higher (it is actually a debt that was charged off in 2008 so not so new). The major problem is that when I went for my mortgage the underwriter required me to pay this account off. Sounds easy, right? Not so much. When I called Geico to pay it off I was told they no longer owned the debt and it was sold to Sage Collection. When I asked them why they were still reporting it and reporting it new every month I was told they could not answer my questions as they no longer owned the file. No collection agency is reporting the debt on my report. Just Geico itself but they claim they no longer own it so I cannot pay them off. I am at a loss of what to do. How can Geico report the default as new every month yet claim they no longer have access to the file because it was sold??
I gave my lender's credit analyst permission to speak with Geico on my behalf as I had no idea what to do as I could not clear the condition and pay Geico. After speaking with Geico the lender contacted me and said they did not understand what was going on with the report as they were told the same thing that it was sold. In the end, the lender removed the condition of me paying that account off.
Now, I appled for Chase Freedom and was told I was rejected due to a recent deliquency with Geico on November 9, 2013 (the day I called Geico to pay them off)... Again, this card was charged off and closed in 2008.
Does anyone have any idea how I can get this straighted out?
Thanks.
