Paid charge off still reporting

[Anonymous]

I have a question. I have been trying to rebuild my score and I am still in the learning phase. I have a closed account still showing deroggatory on my credit report. I had a savings account that was overdrafted, closed, and placed on my credit report. I paid the account off a month after they closed the account which was years ago and even till this moment the account is reporting to my credit report as "charge-off" to my equifax report. My other two credit reports shows "payment after charge off". Are they still allowed to report this monthly even tho it has been paid in full years ago? I have a feeling this is hurting my score since everytime I pull my credit score, it says this is one of the factors that is tanking my score. Can someone give me some insight on what to do?

[Gidgetmom]

I am sure someone more knowledgeable will respond, but I believe the charge off can continue to report 7 years from the  date of first delinquency.  Paying off a baddie does not require them to delete it.  I would start a Goodwill letter campaign to see if the bank would be kind enough to remove it for you.  Either that, or wait for it to fall off your reports.  If it will fall off in the next 6 months, you may be able to ask the credit bureaus for an “early exclusion”.  Good luck!

[Revelate]

If there is still a balance on the tradeline, then the CO will continue to report every month (this would be proper).

If the account is $0, that (again assuming proper reporting) should draw a line in the sand and it should not be updating monthly anymore.

[Anonymous]

Thanks so much for your responses. It's actually been paid to zero balance since 2014 but still reporting monthly as charge off.

[Revelate]

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@Anonymous wrote:
Thanks so much for your responses. It's actually been paid to zero balance since 2014 but still reporting monthly as charge off.

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What's the creditor?

I'd start with a dispute first.

[Anonymous]

It's a bank. We Financial Credit Union. Would the dispute be like a 609 letter type of disputed or a dispute for inaccurate information?

[Anonymous]

Is it updating every month as a charge off?  Or does the description just say that it is a charge off?  They should no longer be updating it monthly, but it can still be reported as a charge off with a $0 balance in the description.

[Anonymous]

It is always best to work with the Collection Agency to work out a settlement. The best way to start the process is sending in a written goodwill letter with your contact info. Whether or not that settlement is pay in full or a reduction, it should always include a "removal" from all credit bureaus. I recommend not paying a penny until they agree to remove the account from all 3 CRA with satifaction of the account.

0 balance, $10 or $10000 all hurts the same in regards to the collections part of your score. Its not the debt its the fact that you have an account unsatisfied. 

The collecton agency does not have to remove it and the credit bureaus typically won't remove it; unless it is not your account.. which it is therefore they won't help. Disputing will not render anything but a waste of time. 

The best thing to do at this point is submit in writing to the collection agency a good will letter anyway. You can look up templates and get a good idea of what you need to say. Be polite and explain that your credit report does not reflect your current financial habits and that you are trying to acheive (insert goal, new home.. etc.) Most of the first agents will say that is not something they can do. But if you be persistant and work your way up to supervisors, you may get lucky. Unfortunately you paid your only true leverage and by law they do not have to do anything to help you. If they do remove it you need to praise them for helping you out!!

I hope this helps and best of luck to you! 

[Revelate]

Dispute through bureau, but that's a good point: if it's just listed as "this account was charged off" and it's reporting OK's, I'd just leave it.

If it is reporting CO / CO / CO / CO.... in the actual tradeline, that's a problem.