No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
The bank/creditor does not determine when the reported charge-off is excluded from your credit report.
That is the responsibility of the CRA.
When a creditor reports a charge-off, they are required under FCRA 623(a)(5) to report the date of your first delinquency on the debt that immediately preceded their taking of the charge-off. That date, called the DOFD, is the only date that determines ultimate exclusion of the charge-off from your credit report.
Once the CRA has received the DOFD, it is their responsiblity to monitor time expired from that DOFD, and they are barred from including the charge-off in any credit report they issue after 7 years plus 180 days from the reported DOFD. They do not consult the creditor, and the creiditor does not report its exclusion.
Check the reported DOFD and make sure it is is accurate. If so, dont worry about what the creditor is saying regarding its exclusion.
The DOFD is a clearly defined factual date-certain.
It must be the first date you became delinquent in the most recent chain of account delinquency that immediately preceded their taking of the charge-off.
They dont actually report the date they did the charge-off, and one reading your credit report would not assume that the continued reporting of the fact that the debt was charged off to be a new charge-off.
If the creditor alters the reported DOFD to a date based on any other event, that is a serious violation of FCRA 623(a)(5) thst would subject them to civil suit.
What I don't understand is how it was reported as a charge off. I thought charge off status was reserved for when a debt was uncollectable usually 90-120 days past due? Plus, if you redeemed the car your credit report should show as repo redeem, with payments reporting again.
I would file a complaint with the CRAs as a violation of FCRA. If nothing else, this may be something you can speak with an attorney about. Creditors who violate FCRA and lose in court (which is easy to prove in cases like this) pay your legal fees and you usually walk away with a few bucks as well.
Sometimes just a well worded "intent to sue" letter can also get things resolved without actually having to sue.
I would speak with an attorney, chargoff generally means they have written the debt off as uncollecable.
@bstone wrote:I would speak with an attorney, chargoff generally means they have written the debt off as uncollecable.
Which simply means that from an accounting standpoint, they do not "expect" the loan to be repaid and its no longer considered an asset. It does not in any way preclude future repayment of the loan, or even re-instatement of the original loan terms. None of that would change the fact that the Charge Off was taken. The OP has the option to continue paying the loan off as agreed, while pursuing GW removal/updating of the CO status, or seek to refinance the loan. The problem with refinancing is that the scoring damage has already been done, and refinancing would be possible only at a very high interest rate. Not worth it, IMO.
OP, what you might want to do is contact the EO and ask that the loan status be updated to "paying as agreed, was a charge off" - which is an accurate reporting of the loan.