Settled Credit Card Chargeoffs and How They Appear On My Credit Report

[Anonymous]

I settled two credit card charge offs for less than the full balance.

One was with CBNA for an American Ailrlines credit account. They reflect my balance as zero and that I legally paid in full for less than the full balance. This is what I expected.

The second charge off was with Nordstrom. I settled that account for less than the full balance but they still show the amount agreed upon that DIDN'T have to be paid as a past due balance on my credit report (Experian).

How do I get them to change it to reflect in the same manner as the CBNA so that it no longer shows I have a past due amount?

[gdale6]

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@Anonymous wrote:

I settled two credit card charge offs for less than the full balance.

One was with CBNA for an American Ailrlines credit account. They reflect my balance as zero and that I legally paid in full for less than the full balance. This is what I expected.

The second charge off was with Nordstrom. I settled that account for less than the full balance but they still show the amount agreed upon that DIDN'T have to be paid as a past due balance on my credit report (Experian).

How do I get them to change it to reflect in the same manner as the CBNA so that it no longer shows I have a past due amount?

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Remind them it was settled for less and that they must report accurate information.

[RobertEG]

If an informal call does not get it corrected, file a dispute with the CRA, citing FCRA 623(a)(2), which requires that a furnisher must "promptly" update any information reported to a CRA as necessary to maintain its current accuracy.

The reasonable interpretation of "promptly" would be in their next regular (usually monthly) reporting cycle.

Thus, wait at least a month and a half after having paid before filing a formal dispute.....

[Anonymous]

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@gdale6 wrote:

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@Anonymous wrote:

I settled two credit card charge offs for less than the full balance.

One was with CBNA for an American Ailrlines credit account. They reflect my balance as zero and that I legally paid in full for less than the full balance. This is what I expected.

The second charge off was with Nordstrom. I settled that account for less than the full balance but they still show the amount agreed upon that DIDN'T have to be paid as a past due balance on my credit report (Experian).

How do I get them to change it to reflect in the same manner as the CBNA so that it no longer shows I have a past due amount?

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Remind them it was settled for less and that they must report accurate information.

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When you say them, is it Nordstrom directly or the company I settled it through (it was a company called Admin Recovery)?

[Anonymous]

Update:

I called Admin Recovery and they said I needed to contact TD Bank....does that mean TD Bank is who extends the line of credit to Nordstrom?

My credit report indicates Nordstrom and not TD Bank so wouldn't it be handled directly with Nordstrom?

[gdale6]

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@Anonymous wrote:

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@gdale6 wrote:

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@Anonymous wrote:

I settled two credit card charge offs for less than the full balance.

One was with CBNA for an American Ailrlines credit account. They reflect my balance as zero and that I legally paid in full for less than the full balance. This is what I expected.

The second charge off was with Nordstrom. I settled that account for less than the full balance but they still show the amount agreed upon that DIDN'T have to be paid as a past due balance on my credit report (Experian).

How do I get them to change it to reflect in the same manner as the CBNA so that it no longer shows I have a past due amount?

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Remind them it was settled for less and that they must report accurate information.

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When you say them, is it Nordstrom directly or the company I settled it through (it was a company called Admin Recovery)?

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You always deal with the entity that is reporting the info.

[gdale6]

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@Anonymous wrote:

Update:

I called Admin Recovery and they said I needed to contact TD Bank....does that mean TD Bank is who extends the line of credit to Nordstrom?

My credit report indicates Nordstrom and not TD Bank so wouldn't it be handled directly with Nordstrom?

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TD Bank is the one who provides the financiing I would deal with Nordstrom first if its reporting in their name and if you get no satisfaction from them then move on to TD Bank. Usually a call to the store gets these things resolved.

[Anonymous]

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@gdale6 wrote:

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@Anonymous wrote:

Update:

I called Admin Recovery and they said I needed to contact TD Bank....does that mean TD Bank is who extends the line of credit to Nordstrom?

My credit report indicates Nordstrom and not TD Bank so wouldn't it be handled directly with Nordstrom?

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TD Bank is the one who provides the financiing I would deal with Nordstrom first if its reporting in their name and if you get no satisfaction from them then move on to TD Bank. Usually a call to the store gets these things resolved.

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You were correct! Nordstrom said they'd expedite the filing to the credit bureaus and apologized for the delay.

Checked my report yesterday and saw the update....although it did drop my scored by 4 points which I wasn't expecting but I think it being properly reported as settled with no past due balance is more important in the long run (I hope at least).