02-20-2013 10:56 AM
On my credit report is CO from GERCB/PAYPAL. There is a zero balance, it says charge off or collection, and closed due to inactivity, and on another closed by credit grantor. Jan 2009 and one was Aug 2010. What exactly does this mean? If I remember right, I paid a long time ago and believe it was supposed to be deleted. What do I do to get this off?
02-20-2013 11:11 AM - edited 02-20-2013 11:12 AM
A charge-off is reported along the way of an accounting measure taken by the creditor pertaining to the debt. It is their internal business.
That accounting measure is not negated by subsequent status of the debt, such as referral for collection, sale of the debt, or payment of the debt.
The creditor does not report a $0 balance based soley on having taken a charge-off. For all intents and purposes, the debt remians fully collectible.
If a creditor reports a $0 balance on the debt, it means either that they have sold the debt to another, who can then report, or that the consumer has paid the debt to them.
Accounts are usually closed to further consumer use prior to a charge-off, and is a separate issue.
If you paid the debt while still owned by the creditor, they must update the balance to $0, but are not required to delete the fact of their prior charge-off.
If the debt was sold, and then paid to the debt collector, the OC account would already show a $0 debt owed to them, and the reporting debt collector would update their reporting to show the eventual outcome of satisfaction of the debt itself.
You can send a good-will request to the creditor, asking them to delete the reported charge-off. There is no requirement that they do so.