Questions on a Charge Off

Mindnumb · ‎05-09-2007

I have a $1,200 Charge off that shows only on EQ with the following notations:

Date Opened 09/96
Date Reported 10/04
Date of Last Payment 5/03
Date Major Delinquency First Reported 1/2004
Date of Last Activity 8/03

It reports 7 years of history 1/98 - 9/04 with the only blemish at 4/03(30 days) and 8/03 (120 Days). It showed a years worth of good history after it was written off.

It is (still) reported as Tranfer/Sold and is listed as a Charge Off.

In March 07 (before reading this forum), I paid a CA in full $ 1,800 for this account.
The CA has not tagged my credit, only the inquire on TU.

My questions are what to expect next.

Should the status change as a paid?

Would the history lost be worth the removal of the account at this date? EQ is my highest score by 20 points.

When should I expect this to disappear on its own? 7 years from when?

I appreciate the wisdom of the forum.

Anonymous · ‎05-09-2007

Chargeoffs and collections when paid become a Paid Chargeoff or Paid Collection. Only slightly better, if at all, than an Unpaid Chargeoff or Unpaid Collection.

Adverse TLs stay for 7.5 years from DOFD. That's usually the date it went 120 days late which sounds like August 2003. However, you can call the CRAs and ask them for the DOFD. They don't report it on consumer CRs, but they store it and are supposed to tell you if you ask.

MercyMe · ‎05-11-2007

Noah_Bodie ... I'm confused. Aside from what the medical collections did to my credit score, an old 10 year, home improvement loan, taken out in 1987 that charged off in 2002, for a meager amount, but that was paid in full in 2003, updated yet again, yesterday, and sunk my score more than 35 points! When I called Equifax to inquire of this, I was told that the bank reported yet another late payment/charge off for May 2007, though the account has been paid and closed since 2003. In the 81month payment history it shows paid as agreed activity from September 2000 through to April 2007, and then charged off in May 2007, which the representative at Equifax said is adversely affecting my score, never mind the summary of info, which reads Bad debt/collection. Paid charge off. Balance 0. DOLA 2/2002, etc. Why is this continually updating and reporting current lates and charge offs? This happens all the time. I have called the OC and am repeatedly told they fixed the problem, and that it won't update anymore, but it always does, and when I call Equifax all they tell me is, "It willl be my pleasure to dispute this for you." AGAIN? So what do I do, now?

Fico: 12/2006: 648 Not good, but okay, considering.

Fico: 05/2007: 583

Thanks.

Tuscani · ‎05-11-2007

MercyMe wrote:
Noah_Bodie ... I'm confused. Aside from what the medical collections did to my credit score, an old 10 year, home improvement loan, taken out in 1987 that charged off in 2002, for a meager amount, but that was paid in full in 2003, updated yet again, yesterday, and sunk my score more than 35 points! When I called Equifax to inquire of this, I was told that the bank reported yet another late payment/charge off for May 2007, though the account has been paid and closed since 2003. In the 81month payment history it shows paid as agreed activity from September 2000 through to April 2007, and then charged off in May 2007, which the representative at Equifax said is adversely affecting my score, never mind the summary of info, which reads Bad debt/collection. Paid charge off. Balance 0. DOLA 2/2002, etc. Why is this continually updating and reporting current lates and charge offs? This happens all the time. I have called the OC and am repeatedly told they fixed the problem, and that it won't update anymore, but it always does, and when I call Equifax all they tell me is, "It willl be my pleasure to dispute this for you." AGAIN? So what do I do, now?

Fico: 12/2006: 648 Not good, but okay, considering.
Fico: 05/2007: 583

Thanks.

What the OC is doing is illegal. Get them to agree in writing that the account will not be updated since it is closed. Sue them if they do not comply.

MercyMe · ‎05-12-2007

Thank you, Tuscani! (Lord, what would I do but for this board and those like you?) I have another question, if you don't mind. Is updating the same as the monthly reporting? And, just so you know, I did call the OC, day before yesterday, and faxed over a copy of the pertinent pages of my credit report. He couldn't make any sense out of it, as the actual date of last activity was 1/26/2002, though the history showed near 7 years worth of paid as agreed activity with the charge off in May 2007. Also, he mentioned there being no status, which has always fluctuated between paid charge off to what it is now, sent to collections. Bad debt. He made a few changes and it updated today, which raised my score 54 points! It has yet to hit MyFico, but Equifax has it. In the account comments it now reads Home Improvement loan. Paid charge off. Though this doesn't read in the status. Does the status matter since in the account comments it reads paid charge off? Balance 0? Date reported May 20, 2007? Thank you for being so patient with me. I'm just learning.

me

Tuscani · ‎05-12-2007

MercyMe wrote:
Thank you, Tuscani! (Lord, what would I do but for this board and those like you?) I have another question, if you don't mind. Is updating the same as the monthly reporting? And, just so you know, I did call the OC, day before yesterday, and faxed over a copy of the pertinent pages of my credit report. He couldn't make any sense out of it, as the actual date of last activity was 1/26/2002, though the history showed near 7 years worth of paid as agreed activity with the charge off in May 2007. Also, he mentioned there being no status, which has always fluctuated between paid charge off to what it is now, sent to collections. Bad debt. He made a few changes and it updated today, which raised my score 54 points! It has yet to hit MyFico, but Equifax has it. In the account comments it now reads Home Improvement loan. Paid charge off. Though this doesn't read in the status. Does the status matter since in the account comments it reads paid charge off? Balance 0? Date reported May 20, 2007? Thank you for being so patient with me. I'm just learning.

me

Updating and reporting could be the same depending how you look at it.. Both the status and the comment matters.

Anonymous · ‎05-13-2007

Paid charge-off is rated as less severe than an unpaid chargeoff -- also, not having a delinquent balance also seems to help in scoring.

I used to be a believer in the "paying a charge-off doesn't matter" theory until I paid one.

While it didn't make a huge score difference (certainly not as big as yours), it did help, and it did help how other lenders perceived me.

Tuscani · ‎05-13-2007

Skiffy wrote:
Paid charge-off is rated as less severe than an unpaid chargeoff

Not always... while YMMV is true for all.. I have seen WAY more paid charge offs hurt a score than increase it.

Anonymous · ‎05-13-2007

I have a paid collection that did me no favor after I paid it. Have talked to scores of folks with paid collections and charge offs, and they too have seen no reward. A few were tracking their FICOs at the time, and did see their FICOs drop slightly after it was PIF.

If I cannot get a PFD, and if I don't have to pay it, I ain't. Screw me once, well, that's par for the industry with no shame (and no scruples, and no morals, and no reflection). Screw me twice, shame on me.

MercyMe · ‎05-14-2007

So, Tuscani -- you're from MN? Anywhere near Walker? ND born and raised here -- family in Wakler, MN; but anyway, I have a few more questions, if you would be so kind.... and I will name the sources this time.

I was wrong. My credit score didn't jump 54 points because Sun Trust Bank corrected some long time errors they've been making with the CRAs, in particular, Equifax. It went up 54 points because the two medical collections came off. HOORAY!!! Which leaves me yet stymied about Sun Trust Bank which reported a current charge-off in May 2007, though the account has been closed and paid since 11/2002.

Over the past couple of years current activity has oftentimes been reported to Equifax, by Sun Trust Bank, showing activity in the 81 month history, which has offset that which is in the account summary which. In this erroneous compilation of bogus history there were 3 charge offs listed over the course of 18 months.