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Contributor
Posts: 111
Registered: ‎02-05-2012
0

What does it mean?

When something on your CR states 0 days past due, paid and balance 0, but the account is listed as closed. I have4 accounts that state that and 3 that say profit and loss paid with 0 past due and account closed. Do I need to do GW letters on these or are they not hurting me that bad? All are from 2006. Thanks

Starting Score: 595 2/5/12
Current Score: 650 midscore lender pull 7/24/12
Goal Score: 640

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Epic Contributor
Posts: 20,071
Registered: ‎03-19-2007
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Re: What does it mean?

Paid is the four-letter word that indicates the party has reported satisfaction of the debt.  It could be paid in full, or paid for less, but either way, the current status becomes paid.

Once paid, meaning the debt is satisfied, the party is also required to report a $0 balance.

 

On the flip side, reporting of a $0 balance does not indicate paid.  It indicates that they no longer have a debt due them.  If they sell the debt, they must report a $0 balance.  The debt is still out there, and someone else can report it.  If an OC does a charge-off and then sells the debt to a debt collector, the CO remains the last status, and they update the balance to $0.  It can then re-appear in your CR should the new owner choose to report their collection on the debt.

 

A charge-off is a serious derog.  Yes, it is worth the effort to attempt its deletion.  If the OC no longer owns the debt, you cannot offer PFD, and must resort to requests for GW deletion.  Having held your debt to be uncollectible, and if sold, having taken a loss of at least a portion of the debt, it is a bit tough to invoke their good-will.  All you can do is give it a go.

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