Does it make a difference in scoring?

[Anonymous]

Derog, Closed, Open, Pays as Agreed ....

Does FICO scoring take the aforementioned account condition/status into consideration in determining one's mark? 

I have a car loan right now that shows as current but still has the "DEROG" notation in it, due to being a repo back in 05.  I wrote a GW letter to the bank which holds the car's title, but they've been hard to deal with. 

I wanted the "DEROG" notation out of there as it has been almost 3yrs after it has been repoed.  Do I have a chance of getting this changed?  Can someone pls help .... 

Thanks, everyone! My scores have slowly been going up due to inquiries dropping off. 

Message Edited by workmywayup on 04-24-2008 01:29 PM

[Anonymous]

The derog notation absolutely affects your FICO score.

Repos report for 7 years, unfortunately.  Is it reporting accurately?

[Anonymous]

You could try a GW request. May have success if you have had 3 yrs of on time payments since then.

[Anonymous]

Unfortunately, I had 2 30-day lates last year.  It had been a hard year financially as I was just out of a high interest consumer loan.  Thank God it is already closed and paid for Dec07.  Please stay away from CashCall. 

Tried writing GW letters.  Can I mention the lender's name?  It's Tidewater Motor.  I mailed them a letter, tried emailing and faxing.  Most recently, I resorted to using the Web to find an executive of the company.  I was lucky to find their CEO's email address and sent him a GW letter too.  So far, no response.  I was requesting for the derog notation to be taken off. 

Message Edited by workmywayup on 04-24-2008 02:26 PM

[rom828]

I know this might be a "YMMV" situation, but about how many points does a status error cost??

I have an old Providian C/O that I've disputed several times that keeps coming back verified as is.  it was paid off 11-05 and description on EQ and EX indicates it's paid, but both are showing on FICO report status as "bad debt/collection".  TU shows is as paid charge off.

I've also disputed w/EX and EQ because after it was paid off (made arrangements w/CA--CA never reported--just Prov) they showed 90 days late for each month I was paying (11/03-11/05).  My april 05 report showed for those same months "ok" and NO 90 day lates.

Again, I've disputed with EQ and EX, even talked to FICO (nothing they can do of course--they just go by whats reported) but have been unable to get corrected.  I'm working with any attorney now to try to get this resolved, along with another acct that has continued to be verifed with erroneous info.

I'm just curious as to how much this wrong info is hurting my scores!  Must be doing some damage as TU is highest score.  I also think it's reason I was declined on a card a while back as it looks like an unpaid C/O!

Current FICOS  EQ  657(just took a 7 pt hit for an inq per Scorewatch!)   EX 687   TU  696

Thanks for any thoughts/advices!

[RobertEG]

Paying off a collection account has no affect on your credit scoring of its delinquency in payment history.  .  By paying it, you acknowledgted its legitimacy.  It will stay with you, under the FCRA, for seven years from reporting of the CA.  Its impact deminishes slowly with time, but will remain.

[rom828]

Robert,

I think this is similar to what you're helping me with on another thread, but from what I've read, has more bearing on scoring.

The charge off has already been paid.

The issue with the status is that EQ is still reporting it as 'bad debt/collection' rather than 'paid co' as it's shown on TU and EX. 

The 90 day lates being added after it was paid off and in contradiction to previous reports is another issue.  I can't imagine that having all these lates, which are 'major' as you advised on other thread, are helping anything, especially when coupled with a charge off!!

I've read on other threads that incorrect statuses like this can hurt scoring and ability to get other credit  as it makes it appear unpaid.

[RobertEG]

I am not denigrating the integrity and wisdom in paying it off, and in fact, I commend you for that!!  It is certainly postitive in the eyes of a lendor.  Lendors will certainly take a favorable view upon you having done that.  But FICO does not.  The derog remains a derog.  Paying off the derog does not mean that it was not a derog in the first place, and that is what FICO scores.

Message Edited by RobertEG on 04-24-2008 06:58 PM

[rom828]

Right..I do understand that it is still a derog.

But I read on other threads that it's scored more harshly if status of acct  is shown as 'bad debt/collection' rather than 'paid charge off'.

This one is especially aggravating for me, as it never should have been shown as a charge off. 

I requested the account be closed (same with the Cross country/Applied) when I started having financial problems after job loss/family illness.  The worst I had prior to asking it be closed was a few 30 day lates.

I made pyt arrangements with Providian,(they even reduced interest to 9.9%) paid without fail for 4 months through auto deductions I set up with them, then out of the blue was contacted by a CA advising the acct had been turned over to them.  I didn't know then as much as I do now, so didn't pursue any type dispute with providian about this.  I was completely intimidated and ashamed to find myself in such a position anyway, so I just agreed to pay to the CA.  I never missed a payment, and all pyts were reported as "OK" and the acct showed paid as agreed.  The CA never reported, just Providian.  After each payment, I got a little letter on Providian letterhead acknowledging the payment.

It wasnt until I pulled my first fico report in April 05 that I saw the charge off status, although it also showed 'paying as agreed".  I questioned the CA and they advised once it was paid it would be corrected.  Again, I didnt ever read the forum, didnt know anything about anything and took them at their word.  Paid the account off (earlier than agreed, I might add, by eventually doubling the agreed to monthly amount).

I didnt pull another report till I think 07 or 08, and it still showed status as charged off, "bad debt/collection"   AND  with 90 day lates for each month I was paying after the closed date of 11-03. (final pyt was 11-05).  As I said, the reports in 05 showed "paying as agreed" and "OK" for those same months.....now they show "RF" for those months on EX and EQ. 

I had nothing in writing so didnt act on anything until I started credit repair.  All disputes with providian have just come back as 'verified" which is why I've consulted an attorney.  This attorney has had many dealings with Providian and thinks he'll be successful in getting all this corrected.  (He specializes in credit law, and my sister is his paralegal, so he is not charging me to help me)

Since I've been repairing, I'm more score conscious, so was just wondering the effect on my score if this account is at least corrected out of the bad debt status and the 90s are removed. 

I am in no way trying to do anything 'shady'.  I was trying to fiscally responsible when I requested this acct be closed...thought it was the best way to handle it.  And I'm willing to take all my lumps for all my fiscal sins.  But I also think if something that is incorrectly reported is hurting my score, I should make every effort to correct it.  so that's what I am trying to do, and was just curious if anyone had an idea of how it might affect my score.

[Anonymous]

Update on this topic:  My CR reflected a change yesterday.  The "Current" payment status with EX and EQ has now changed to "Repo".  Is this an indication that the lender is really not willing to make an adjustment to the reporting in my favor?  TU now shows it as "Current" which was previously "Repo".  Go figure ....

Also, I have noticed that there's a remark on this item saying "This item is scheduled to go on a positive status" 2014.  This loan was opened April 2004.  Does that mean the "Repo" notation may  be taken out after 10yrs the actual loan was opened?  The "Repo" happened 2005.  Can this be something that I could dispute?   

Anybody pls?         

Message Edited by workmywayup on 04-25-2008 12:45 PM