10-19-2012 10:39 AM
I have started working on cleaning up the negative info on my report. Like a bunch of us, i was stupid in college. I currently have several negatives on my report. I am paying 2 different collection agencies for a couple of charged off accounts. I have a public judgement from 2007 that was paid.
Long story short, my auto loan was opened in June 2003 with Suntrust. I paid every month on time until 2007. I was in college and working PT and barely had money to buy food. Instead of calling I just ignored my loan. I had about $3k charged off and they were ready to repo when i called and spoke with someone who agreed to a payment plan. I paid every month until Feb 09 when i paid the bal in full. I have the title to my car and as far as I understand I paid off everything even the charged off amount.
My question is: On my credit report the status is listed as paid. Closed. $3274 written off. Can I ask them to remove all negative info and mark account as paid and closed or should I just leave it be? Also, under acct history is says charge off June 2009 to Feb 2010. I already had the title to my car before those dates.
10-19-2012 01:41 PM
The charge-off reporting reflects only the fact that, at that point in time, they considered the debt as uncollectible, and shifted it in their accounting books from a receivalbe asset to an uncollectible bad debt. In doing so, they reduced their taxable assets. Their internal business.
Subsequent payment of the charged-off debt does not eliminate the fact of their prior business action, and thus does not require deletion of that reporting.
How they deal with the payment involves additional bookeeping on their part by now requiring them to declare the payment as an asset. Their issue, not the consumer's.
You can ask that they delete reporting of the charge-off based on payment of the debt, so yes, a GW request is your option.
However, you face the obstacle of their reporting agreement with the CRA, in which they are instructed not to delete prior reporting based on payment of the debt.
A GW request for deletion based on payment usually has a better chance of acceptance if you can get it to the desk of a management official with the authority to grant exceptions to their CRA reporting obligations.