Score went up 78 points!

[nickkinfl]

I am in the process of rebuilding my credit and I have a charge off from Aug. 2015 for an auto loan for approx $10,000. My credit scores yesterday were high 570's across the board up from 530's-550's in Dec. 2015-Jan. 2016.  I have gotten secured credit cards since then and a Cap 1 rebuilder card and slowly my credit has improved. I have disputed and I have done PFD's. I thought that the charge off would NEVER come off before 7 years because the creditor would not budge. I disputed the past due amount on my credit reports because from what I thought I understood, if it was charged off and I received a 1099 form, then it should not be reporting past due, just charged off.(Not 100% sure on this, but so far that has been what I have researched). I decided to take a chance and dispute the amount because what did I have to lose? Yesterday I was shocked when I was approved for a VIctoria's Secret card with a limit of $500 with the SCT!

This morning, I get an email from Experian saying that my dispute results are ready and I see that it was deleted!!! I pulled a new Fico score and it went from 576 to 654!!! I am super excited, BUT I am also cautious because I am fully expecting for it to be put back on again next month. This just shows how much a baddie can affect your credit!

Is there anything that would stop a creditor from putting the same info on your credit report after you have disputed it and the credit bureau has removed it? I am also waiting on the results with EQ and TU. In a perfect world, it will be deleted from all 3 reports because deleting it from just one would not really do me any good because it would still be on the other 2. I will see what happens as far as it being put right back on my report. If it is put back on, at least I can say that my credit score used to be 654 which is the highest it has ever been!!

[loyalsudz]

"I thought that the charge off would NEVER come off before 7 years because the creditor would not budge. I disputed the past due amount on my credit reports because from what I thought I understood, if it was charged off and I received a 1099 form, then it should not be reporting past due, just charged off.(Not 100% sure on this, but so far that has been what I have researched). I decided to take a chance and dispute the amount because what did I have to lose?"

Congratulations! So my question is where did you find the information to support that after a charge off creditors can not report it late.  I paid off my charge off but with every payment they reported me as late.  If what you say is true I would like to go ahead and dispute it.  Also, please let me know the steps to dispute, am I disputing the amount, the date, what? 

[gdale6]

Here is an article to look at concerning 1099 accounts, this is unsettled law on whether or not they should show a 0 balance and if the debt is actually canceled or not.  http://www.forbes.com/sites/peterjreilly/2013/05/20/bank-cannot-issue-1099-c-and-subsequently-try-to...

[nickkinfl]

Exactly as gdale6 cited above. This is a very gray area as to whether or not a creditor can charge off a debt and still get the tax write off at the same time AND expect a debtor to still pay. From my research the question is if a creditor can have a tax advantage by writing off a bad debt, then does the debtor still owe. I have read some statements and a court ruling that state no a creditor can not have the best of both worlds by having the tax advantage AND still make the debtor pay. Of course I am not a lawyer!  I live in Florida and I am still responsible for the debt even if a 1099 form was sent to me. My intent was not to try and get it deleted because I never thought that I would before 7 years, but my intent was to state that I know I owe the debt and the amount is correct, but I did not agree that it was still showing every month as  past due if it was charged off. I never expected it to be deleted and in my mind, I am expecting it to be put back on my credit report if the creditor eventually validates it. If they do nothing, then it will remain deleted.

I would say that you have nothing to lose by disputing it if you feel that you have a valid dispute.

[nickkinfl]

Oh one more thing, when I disputed it, I simply stated that I got a 1099 form because the debt was written off, but that I did not agree that it should still be reporting as past due every month if it was charged off. That's it. My statement was simple and to the point, but again, I am sure that it was deleted due to the creditor not validating the dispute in time. I hope that it works out to my advantage that they don't ever come back and validate it.

[gdale6]

A dispute can be tried on the basis that one cannot forgive the debt with a 1099 and at the sametime say its still due. If this doesnt work there are 2 other avenues to persue one would be a complaint to the CFPB on same basis as the dispute as they do have authority to regulate or an outright lawsuit to get it before a judge and get a determination.

[nickkinfl]

Oh thanks gdale6. I did not know about complaint with CFPB. I will purse that based on info that I get with the other 2 bureaus and with EX if it is put back on my credit report.

[Anonymous]

Also if EX adds back to your report, which is called a re-insertion. By law they have to notify you in writing that this account was added back to your report. If they don't, it carriers a FCRA violation in the amount of 1k.

[Anonymous]

following

[debtfighter]

ive been on the forums for this topic before. boyfriend has a chargeoff/repo for an auto loan. got a 1099c for it in december 2014 and paid the 1099c in january 2015. transunion reports it as a closed account and equifax reports it as an open account. the auto loan company updates every month. Transunion says fall off date as april 2015 and equifax says september. should we leave this company alone? looking to buy a new car in april/may for daughter.