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Paid off Amex Charged off account and...

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darwin_wins
Established Contributor

Paid off Amex Charged off account and...

I have been asking questions about Optima for a really long time and the app is on its way. I wanted to see how Amex updates the credit report after paying the account and today I checked reports for TU and EQ and both of them don't have that trade line anymore.!!! 

 

From what I have read so far, Amex takes a while to delete it. I am happy that the account is gone from the report.

 

Does anyone have experience with United Illuminating? It shows 120 days on my report from 2010 and it is going to go away in Oct of next year. I could try for EE in 6 months from now but is it possible for me to pay off the amount and get it deleted? I still have few things that keep on reporting every month and I know MCM is going to dent my report once again in 11 days and that will be bad because of the amount owed but I can't pay it off so I will have to deal with that for almost a year.

 

But today is a good day!! 

Message 1 of 5
4 REPLIES 4
RobertEG
Legendary Contributor

Re: Paid off Amex Charged off account and...

A PFD is always better than simply getting removal of a charge-off or a collection by its exclusion at 7 to 7 1/2 years from DOFD.

 

A PFD provides two things that credit report exclusion does not.

 

First, it satisfies the debt.  Unpaid, delinquent debt can still be a factor in denail of new credit even after credit report exclusion of a reported collection or CO on that debt.

 

Second, it deletes the collection from your credit file, which is different from excluding the CRA from continuing to include it in future credit reports they issue.

Credit report exclusion is not absolute, and under very rate and limited conditions, as set forth in FCRA 605(b), a party can still obtain a credit report that includes all normally excluded information.  While very rare, it is legally permissible.

Message 2 of 5
darwin_wins
Established Contributor

Re: Paid off Amex Charged off account and...

Oh I agree that if you can go for pfd but I didn't have that option at all. When I was called to pay off the debt I asked and they said it is up to Amex and Amex didn't hold the debt so I couldn't even ask if they would pfd.

I was just going to be happy that the balance was 0 but when I didn't see it I was very happy. One less thing to worry about next year.

I know I will have about 6 items which won't be deleted but would disappear as time goes by. I had foolishly paid hsbc without asking for pfd as I did with citi. But what is done is done. Now I am going to be in my last year and things should start dropping from May of next year. By the end of next year ( or possibly earlier) I will have a clear report.

Any idea on how long the items can seen by someone if they request a full report after things have dropped off from the report? Like 10 years from dofd they can still be seen if I apply for mortagage?
Message 3 of 5
gdale6
Moderator Emeritus

Re: Paid off Amex Charged off account and...


@darwin_wins wrote:
Oh I agree that if you can go for pfd but I didn't have that option at all. When I was called to pay off the debt I asked and they said it is up to Amex and Amex didn't hold the debt so I couldn't even ask if they would pfd.

I was just going to be happy that the balance was 0 but when I didn't see it I was very happy. One less thing to worry about next year.

I know I will have about 6 items which won't be deleted but would disappear as time goes by. I had foolishly paid hsbc without asking for pfd as I did with citi. But what is done is done. Now I am going to be in my last year and things should start dropping from May of next year. By the end of next year ( or possibly earlier) I will have a clear report.

Any idea on how long the items can seen by someone if they request a full report after things have dropped off from the report? Like 10 years from dofd they can still be seen if I apply for mortagage?

They tend to clean house at the 10 year mark like they do for closed positives but there is no guarantee there are reports of derogs and positives remaining in file 15-20 years after the closing. Full factual reports are expensive and its not the norm to use them but there are some who do.

Message 4 of 5
darwin_wins
Established Contributor

Re: Paid off Amex Charged off account and...

What does one do with such derogs so after 10 years someone tries to get full factual report? At that OC definitely doesn't hold it and who knows which CA will hold it and how tthey would react if you try to get in touch with them?

 

At what point in terms of mortgage amount will someone say we need to get a full factual report? Does derogs even have any standing on your ability to pay or do things say after 10 years if you have had impeccable record? I know anyhing can happen to anyone at any point and they can default but holding something like this for over 10 years? I dont see how that would be helpful at all.

 

 

 

Message 5 of 5
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