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Valued Contributor
demed
Posts: 1,255
Registered: ‎05-12-2008

Key Derogatory question

Old and closed bank account, two CRA report as closed charge-off\purchased by other lender with no new activity (since at least 2004), while equifax keeps reporting a red Key Derogatory every month.
 
Is this normal? when\how should this cease?
 
thanks in advance 
Feb 08 550s - Oct 08 700s
Thank you MyFico!
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Key Derogatory question

Huh!!!!????
Bank accounts per se do not report on our credit report.
So it must be more than just a closed checking or savings account?
Was it a loan or CC through them?  An overdebit debt?
Otherwise, I dont see why it would be reported as a debt derog???
Please explain.....
 
Valued Contributor
athensguy
Posts: 1,291
Registered: ‎02-26-2008

Re: Key Derogatory question


demed wrote:
Old and closed bank account, two CRA report as closed charge-off\purchased by other lender with no new activity (since at least 2004), while equifax keeps reporting a red Key Derogatory every month.
Is this normal? when\how should this cease?
thanks in advance

It should not be reporting as late every month. If it's out of SOL, you can send a DV to the CA and file a dispute with the CRA. There are example letters posted on this site for the DV. Never talk to the CA on the phone. If you can afford to pay it in full, it doesn't matter if it is in SOL, as you can pay it off to prevent a judgment.
Valued Contributor
demed
Posts: 1,255
Registered: ‎05-12-2008

Re: Key Derogatory question

It's a closed account - I asked to close it some 5-6 years ago, the bank applied a number of closing charges I disagreed with and went unpaid - from a $0 balance they sent it into a some -$400 overdraft over a period of a year before finally closing and sending to collection. However, I never got any notice from collectors about this and in the Credit Reports it is still active by the Original Creditor and these red KD marks keep being posted every month.
 
  thanks for the suggestions
Feb 08 550s - Oct 08 700s
Thank you MyFico!
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Key Derogatory question

Ah! thanks for the followup info. 
So essentially, they have put it into a collection?
If so do NOT pay it until you send them a PFD (pay for delete) letter, agreeing to settle in full ONLY if they agree  IN WRITING to delte the entry from your CR.  Otherwise, it will remain on your CR for 7 years, whether or not you pay it
 

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