Question about charge off and payments?

Anonymous · ‎01-29-2013

We went through a rough spot 4 years ago due to medical issues with a child. We couldn't pay our monthly balance on credit card, so Chase increased our interest rate to 36% which really put it out of reach to pay. Finally, paid for less than amount due. Another card was a charge off, and we have been making payment through a collector for over a year now. There is no information on our credit report than states we are paying the charge off. The credit card company says that it won't be reported until paid in full. The collector is not reporting. Is that the way it's usally done?

guiness56 · ‎01-29-2013

If you are making payments, the OC is obligated to report accurately. They should be reporting your payments. The CA is the one that is supposed to let them know you are making your payments.

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Shogun · ‎01-29-2013

+1 On this one. They are obligated to show payment activity on the account.

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Rain77 · ‎01-29-2013

Collection Agencies do not have to report - be sure to keep all records of payments in order. You may want to make sure the OC is aware that payments are being made thru the CA and get the updated balance from the OC. It is true (at least IME) that the OC does not have to report anything about a repayment plan once charged off - they have to report the balance change but the account will stay in CO status with the OC. My concern would be that the CA is reporting your payments to the OC.

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guiness56 · ‎01-29-2013

No, CAs do not have to report but the OC does have to report payments on the debt.

The OC is aware but won't update until PIF which is a violation,

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RobertEG · ‎01-29-2013

+1

Your legal basis for requiring them to update is FCRA 623(a)(2), "Duty to Correct and Update Information," which places the obligation on any party, once having reported information to a CRA, to timely update the information so as to maintain its current accuracy.

As stated, the real-world issue is timely notice back from the debt collector that the balance has changed. The OC assumes obligation to exercise diligence in reviewing their reporting after they have chosen to report. If they choose not to do so, they always have the option of forgoing any such obligation by simply deleting the reporting.