Reply
Established Member
Sxott
Posts: 23
Registered: ‎01-04-2013

What happen here? 30 point dive. Can they do this? Im sooo mad

This was an old overdrawn credit union account that was charged off and was past its SOL. It was showing a balance of 495 and credit limit of 500. This put my utilization at 66%. I wanted the balance to say 0 since it has been charged off and handed to somebody else. I went into the credit union and explained they were doing and to make a deal to pay them if they just update my bal and they said they cant take my money because its been charged off to Merchants Credit and my account was long ago closed. They told me to dispute it and it would be fixed. I disputed and they come back with this! My score took a 30 point dive. They added a ton of 90 day lates (69 of them)  and topped it with a recent 120+ status. If it has been charged off, how can they report late payments and add a butt load on top of that?

 

Snapshot of report


Starting Score: 606
Current Score: 607
Goal Score: 700


Take the myFICO Fitness Challenge
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: What happen here? 30 point dive. Can they do this? Im sooo mad

Because it is unpaid.  They weren't reporting and now everything has updated from the last time they reported.

 

If they still own the debt, whether it is CO or not, it can report a balance.  Just because they CO'd it doesn't mean it has to report a 0 balance.  Only if it was sold.

Established Member
Sxott
Posts: 23
Registered: ‎01-04-2013

Re: What happen here? 30 point dive. Can they do this? Im sooo mad

[ Edited ]

If its charged off, How can they report 90 days late 69 times and 120+ being most recent? That would mean I kept paying them 90 days late up to today and now Im over 120. Wouldnt it be more like 30, 60, 90, 120+  .. Charge off. Then stop reporting payments at that point.

 

Last activity was 6 years ago.


Starting Score: 606
Current Score: 607
Goal Score: 700


Take the myFICO Fitness Challenge
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: What happen here? 30 point dive. Can they do this? Im sooo mad

Because it is unpaid and they are reporting a balance it can be reported as late every month until paid. 

 

A charge off is just an accounting term. 

Established Member
Sxott
Posts: 23
Registered: ‎01-04-2013

Re: What happen here? 30 point dive. Can they do this? Im sooo mad

The account has been closed and in the hands of Merchants Credit CA for several years. They wouldn't even take my money when i tried to pay them. Something is not legal here.


Starting Score: 606
Current Score: 607
Goal Score: 700


Take the myFICO Fitness Challenge
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: What happen here? 30 point dive. Can they do this? Im sooo mad

The OC could very well have assigned it to a CA.  The OC doesn't have to take your money once it is assigned to a CA, it is within their rights not to.

 

 

If they sold the debt to the CA, the OC account has to show a 0 balance and say transferred/sold.  Then it would be illegal for them to take your money.

 

Call the OC and ask them if they sold it.  If they did they are not reporting correctly, if they did not they are.

 

They updated an account that has been dormant since 2007 and added all the lates in the history.  That is what caused  your score to drop.

 

 

 

 

Established Member
Sxott
Posts: 23
Registered: ‎01-04-2013

Re: What happen here? 30 point dive. Can they do this? Im sooo mad

When I went in they said it was "Merchants Credit" now and I would have to talk to them. Can merchants credit be collecting for them and they still own the debt????


Starting Score: 606
Current Score: 607
Goal Score: 700


Take the myFICO Fitness Challenge
Senior Contributor
DaBears
Posts: 3,923
Registered: ‎10-26-2012

Re: What happen here? 30 point dive. Can they do this? Im sooo mad


Sxott wrote:

When I went in they said it was "Merchants Credit" now and I would have to talk to them. Can merchants credit be collecting for them and they still own the debt????


Yes. Both the OC and CA can report. If the OC still shows a bal that means they still own the account. As Guiness stated if they did sell the account the OC has to update the bal to $0. 


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+