Re: Can someone PLEASE help me understand something
09-28-2012 08:37 PM
Current status reflects no history prior to its... current status.
While an account remains delinquent, it can continue to report a current status of, for example, 120 late. The balance due does not necessarily denote its current delinquency status.... for example, a creditor could have a delinquent account and sell the debt, which requires them to report a balance of $0. That does not mean there is no debt remaining on the account, or that it is no longer delinquent. The issue is whether the debt was satisfied (paid).
When a delinquent account is brought back into good-standing, either by paying and keeping the account open, or paying delinquent debt on a closed account, the current status then switches over to a payment, rather than delinquency, status. When that occurs, the prior level of delinquent prior to its new paid status is retained under a separate code called your Payment Rating. So your file shows its current status of paid, and additionally shows the prior 120 late status. Its just a matter of which storage bin contains the info.
A paid, closed account will have a current status of paid, a current balance of $0, and if it had prior delinquencies, a payment rating that reflects the level of prior delinquency.
Info does not disappear based on payment.
Any prior monthly delinquency is prohibited, under FCRA 605(a)(5), from continued credit report inclusion after 7 years from its date of occurence of the delinquency.
If a prior delinquency remains after its statutory exclusion date, one of two things is wrong. Either the creditor reported the incorrect date, in which case the CRA is not at fault, or else the CRA has failed to monitor the expiration of the 7 year period.