Proof of Paid Charge-Off
10-09-2012 08:45 AM
I will paste the post that I submitted in the understanding Fico scoring forum in red:
Hi everyone! I have a question about the updating of a paid charge-off. I have a charge-off on my CR from Barclays for the amount of 2,304.61. Barclays still owns the debt but I paid it off in full through their collection agent ARS. I paid it in 4/2012. I received a letter from ARS the following day after I PIF stating that the debt has been paid in full and that they will notify Barclays Bank. However, my credit report has not updated yet! The CR still shows a charge-off in the full amount without the paid status.
Here's the big concern for me. Barclay's has not updated my CR since July of 2009! I am afraid if I contact them to have it updated, it will ding my scores because it will look more recent. The charge-off is not really hurting my scores right now because I am at 690+ on all of my "true" FICO scores. Also, I have the letter stating that it has been paid in full (which I plan on providing to an underwriter when I mortgage app in December). I want your expert opinions on whether I should just leave it alone or force the issue on an updated status. Thanks!
I am afraid that if I contact Barclay's to update the paid status, they will update the DOLA and it will hurt my score. I am wondering if it is normal for an underwriter to demand the "0" balance be shown on the credit report even if I have documentation from the collection agency that the account has been paid in full. Any insight would be great! Thanks!