confused about HSBC update on CR

[cgussio]

I'm a bit confused about how HSBC has updated my CR. My account was CO in 2009. I disputed the entry last month due to some incorrect entries in the payment history. They did update the trade line but I'm a bit confused about what the new information means.

The HSBC trade line now is an entry under my "Accounts in Good Standing" section. The status is simply Closed (before it was Closed. $559 written off). There is a comment that says Purchased by another lender. The only entry for Payment History is NOV 2009 Closed (before it had the months where I was OK as well as the lates, CO and then CLS).  The last change was that the account is now scheduled to continue on record until Nov 2019.

Although it is not reflected in the new, updated information, the DoFD was May 2008. I am confused if this is still showing as a negative and if so, i need to continue to dispute it to have it reflect the DoFD so it will fall off my CR next year or instead, after the update, is this tradeline now actually a positive? In which case I suppose I should just not poke it anymore?

Thanks in advance for any insight!

[RobertEG]

Closed is not a delinquency/payment status, it is the status of availability of the account for continued use.

The current status reflects only the account status as of their leas reporting.  It does not relate to any prior status.

It's status as being a CO prior to becoming paid is retained in your Payment Rating code,along with the prior reproting of the CO itself.

The prior payment history can still show the CO with a closed, paid account.

Since it remains in your payment history, it is being scored.

There would have been no reason for the CRA to have deleted the reported DOFD.  It is separately reported and stored under the FCRA Compliance Date code in your creit file.

Credit reports frequently do not show the reported DOFD.  That does not mean there is no reporting of such in your credit file.

The CRA cannot use a payment date or any other date as the DOFD.  They dont infer DOFD, they use the specific reporting of DOFD provided separately by the creeditor.

I would not dispute an incorrect DOFD until you have first contacted the CRA, and determined that there is no DOFD of record in your file.

[cgussio]

I think what you are explaining in your post is what I expected to see on my CR. Even after my dispute, I was still expecting to see the lates and the CO in my payment history. Instead, there is only a single item listed in the payment history and it is for the month that the account was closed. If the lates and the CO are not reflecting in the payment history for the CC is it still retained in my Payment Rating code?

One other thing that confuses me about the change... in my first report, HSBC was listed under the Potentially Negative Items or items for further review section in my EX CR. Now, in my CR post-dispute, it has been moved to the Accounts in Good Standing section.

[policebox]

As a result of your dispute, it looks like the negative information was removed. The reason this trade line is now showing in the "positive" part of your report is because all the negative information was removed. Positive trade lines will continue to appear on your report for up to 10 years from the date the account was closed.

You did good. This is now a positive trade line on your credit report. Now I advise you to leave it alone.

[cgussio]

Thanks for helping me figure it out. This was not what I was expecting to happen, but I will definitely take the positive entry. It will be interesting to see, if this was updated on all 3 CRs or just the one. My plan is to pull all 3 in April; I will find out then.

Thanks again!

[policebox]

Yes it was certainly an interesting result, but in all actuality it was about the best possible outcome, since you get the benefit of the older age of the account without having the negative information there.

Congrats!