"KD" reporting on Experian long after debt is settled (Midland)

[Pigeyex]

How, exactly does the "KD" (key derogatory) impact my credit scores?

I have a debt that I settled last year with Midland, but it's showing as a "KD" on my Experian report as recently as April of this year.  Are they allowed to do that?

I'm trying to improve my overall credit picture, and one of the drags on it is the "length of time since the last negatively reported status" thing.  Now that I've gotten everything else taken care of, this one is my most recent.

Please advise . . . thanks!

Pigeye

[Halo13]

Yes, because KD - Key Derogatory is a category, not a status. Collections, BKs, liens, repos, foreclosures, regardless if paid, unpaid, dismissed or   settled, are still KDs. Just like amortgage is a mortgage, credit cards and store cards are still revolving account, auto and student loans are installments. 

[Pigeyex]

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@Halo13 wrote:

Yes, because KD - Key Derogatory is a category, not a status. Collections, BKs, liens, repos, foreclosures, regardless if paid, unpaid, dismissed or   settled, are still KDs. Just like amortgage is a mortgage, credit cards and store cards are still revolving account, auto and student loans are installments. 

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But shouldn't the "KD" be reported in, say, the month in which I finally settled the account?  That seems to be how the "KD" is used in other TLs on my reports?

[Halo13]

http://collectionagencydebt.blogspot.com/2012/02/what-is-key-derogatory-on-your-credit.html?m=1

Experian is special.

[Pigeyex]

Thanks for the link, Halo -- very informative.

Interestingly, my Experian score (718) is significantly higher than either my Equifax (671) or my TransUnion (662).

Can I request that Midland report my "KD" in the month in which I settled my account with them?  (11/2013) rather than 4/2014?

[Shogun]

I'm not quite understanding the question.  They cannot update monthly derogs AFTER the debt is paid/settled.  That's to say if you paid it off a couple years ago, it can't be updated this month and have it appear newer.  If it is updated with derogs after the date it was satisfied, that's inappropriate reporting.

[Pigeyex]

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@Shogun wrote:

I'm not quite understanding the question.  They cannot update monthly derogs AFTER the debt is paid/settled.  That's to say if you paid it off a couple years ago, it can't be updated this month and have it appear newer.  If it is updated with derogs after the date it was satisfied, that's inappropriate reporting.

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That's what I'm saying.  I settled with them last November, but on my most recent Experian report, they're showing a "KD" in April of 2014.

The only thing I can think of is, I had disputed this account over a year ago.  When I settled it in November, I (mistakenly) assumed that the dispute would automatically go away -- it didn't.  It showed up on a deep-pull of my credit when we refinanced our mortgage this April, and I had to write a letter to both the credit bureaus and to Midland stating formally that I NO LONGER DISPUTED THIS ACCOUNT.

Could THAT have triggered the fresh "KD"?  The debt itself was paid off in 11/2013; I don't see how they can put a KD in 4/2014 merely because that's when I removed my dispute?

PIgeye

[snugglebug]

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@Pigeyex wrote:

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@Shogun wrote:

I'm not quite understanding the question.  They cannot update monthly derogs AFTER the debt is paid/settled.  That's to say if you paid it off a couple years ago, it can't be updated this month and have it appear newer.  If it is updated with derogs after the date it was satisfied, that's inappropriate reporting.

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That's what I'm saying.  I settled with them last November, but on my most recent Experian report, they're showing a "KD" in April of 2014.

The only thing I can think of is, I had disputed this account over a year ago.  When I settled it in November, I (mistakenly) assumed that the dispute would automatically go away -- it didn't.  It showed up on a deep-pull of my credit when we refinanced our mortgage this April, and I had to write a letter to both the credit bureaus and to Midland stating formally that I NO LONGER DISPUTED THIS ACCOUNT.

Could THAT have triggered the fresh "KD"?  The debt itself was paid off in 11/2013; I don't see how they can put a KD in 4/2014 merely because that's when I removed my dispute?

PIgeye

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Ohhhh, good ol' Midland.  They are absolutely incorrectly and inaccurately listing your account "KD." So wrong for that!!  This also happened to me. A while back I had a PAID account with them. Sent GW letters and disputed (I disputed bc I had originally paid the OC).  But low and behold, they updated "KD" and late for the month(s) I did this...even though it had been paid over a year ago. I also noticed they were listed under "installments" too as a factoring company, and on another report as a collection. I tried to reason with them, but they repeatedly said they were reporting correctly. Uh, no. It was not late now if it was PIF over a year ago. So, I turned to the CFPB because they wouldn't listen. I filed a complaint and 14 days later, the account was deleted. Hope that helps some.  

[buildafico]

OOOOOOO. if I'm hearing this correctly its time to dig out the proof that you setlled, and hire a lawyer  lol

[Shogun]

Well, first off, this is pretty much a moot point.  As a CA, Midland is not allowed to post a monthly derog... PERIOD.  That is reserved for the OCs only.  File off a complaint on them that they are supplying monthly derogs as a CA.  This is a big NO NO.