Settled Accounts Reporting Balance

[Maximus5403]

About 5 years ago these accounts were charged off, but as I am now going to have to go for a Mortgage end of July I needed to work fast to bump up my score. I called all of creditors and settled the accounts within the past 2 weeks, but when they updated the accounts with the CRA's they simply deducted the payment from the balance and are still showing a balance. When I called Chase about this they said it takes 30-60 days to update. Shouldn't they have updated the balance to $0 initally rather than just applying the payment and still showing a remainingh balance? and is there any way to get them to do this faster? When I asked I was told no.

The following accounts were settled but still showing a Balance:

Chase

CFNA

Portfolio Recovery

Cavalry Portfolio

[medicgrrl]

It's an internal system thing. It's pretty common for them to do it that way.

[Maximus5403]

I guess my only option is to wait it out then. One of them said it's incase of a returned/cancelled payment.

[RobertEG]

I concur.

It is very common for creditors to first ensure that any payments are cleared before taking the final step of zeroing out the settled debt and taking other final steps, such as sending any required 1099c to the IRS for the cancelled debt.

It is very common to first report the payment to the CRA, and then finalize the reporting in a subsequent update once they clear the debt.