Should Payment Plans with CAs Be Reporting?

[Anonymous]

I have been in a payment plan with Springleaf for the past year for a charged off loan I had with them. Every month they update the "balance" field to some number I don't know where it comes from, sometimes the same amount as the month before. For instance, this month they updated it to $1328.00, however, I have only $200 left to pay them per our arrangement (settled). They do report the "last payment" field accurately every month, but my payment history shows CO since 1/2014. This is probably right but I wanted to make sure because I could really use the positive payment history if I could get it to reflect on my report.

I also just entered into payment plans with 1 CA and my previous bank for a charged off loan. These repayments are for the full balance, so how should I see them reporting? Should the "balance" field be accurately reflecting my payments every month?

[gdale6]

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@Anonymous wrote:
I have been in a payment plan with Springleaf for the past year for a charged off loan I had with them. Every month they update the "balance" field to some number I don't know where it comes from, sometimes the same amount as the month before. For instance, this month they updated it to $1328.00, however, I have only $200 left to pay them per our arrangement (settled). They do report the "last payment" field accurately every month, but my payment history shows CO since 1/2014. This is probably right but I wanted to make sure because I could really use the positive payment history if I could get it to reflect on my report.

I also just entered into payment plans with 1 CA and my previous bank for a charged off loan. These repayments are for the full balance, so how should I see them reporting? Should the "balance" field be accurately reflecting my payments every month?

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Typically once its COed its that forever. They have to update it to show the balance due and amount paid if its less than full balance once its paid off they have to update to 0 balance due its the law though it may take a month or two for that to happen. On the other 2 again they have to report accurate information so they will update showning the paid down balance monthly.

[RobertEG]

Technically, they are required under FCRA 623(a)(2) to promptly update any information as needed to maintain its current accuracy.

However, it is not uncommon for furnishers to be a bit lax in promptly reporting each and every monthly payment.

As for the remaining debt balance, each payment should reduce the existing debt balance.  If their is a settlement agreement for less, that requires them to update to $0 once that amount has been reached.  The remaining balance continues to be based on the total debt, as that is what remains legally owed until such time as the agreed settlement amount has been paid.  If you should default on the payment plan, they can sue for recovery of the entire debt.

If you plan, after paying the agreed settlement amount, to then request a good-will deletion of their collection, it might be beneficial not to push too strongly for compliance with updating each and every month.