Re: What is the appropriat
e status for a paid/close d installmen t account?
09-18-2012 11:48 AM
You are totally correct. Continuing to report the current status as 30-late informs others reviewing your CR that the account is currently delinquent. Thus, it is significant.
It is not necessarily conclusive that reporting a $0 balance signifies satisfaction of the debt. If a creditor sells a delinquent account, they would also report a current balance of $0/
They apparently have not read the CRA credit reporting manual, titled the "Credit Reporting Resource Guide," in which current status is clearly defined as a snapshot of the account status as of their last reporting, and does not reflect any prior, historical status.
A satisfied account is no longer delinquent. Its current status is Paid.
The 30-late would be reported, as your stated, separately as its Payment Rating code, which retains record of the level of delinquency prior to its current status.
I would advise them that they have a statutory requirement (FCRA 623(a)(2)) to update any prior reporting so as to maintain its accuracy.
Their prior current status of delinquent is no longer accurate.