topic Re: Negative Reporting in Credit Cards

Negative Reporting

Anonymous — Tue, 16 Feb 2016 18:17:16 GMT

So Walmart closed my $3500 credit line due to 1 return payment mishap. My bank wrote a letter on letter head staing the funds were actually there when the charge came through. I still have a balance on the charge card but it shows "CLOSED" with No Missed Payments and on my credit report. Can Walmart report anything negative on my credit report after they closed the account if the balance isnt paid.

Re: Negative Reporting

Bankrupt2019 — Tue, 16 Feb 2016 18:22:12 GMT

If you don't continue to meet your financial obligations they can certainly start reporting lates if you become late in your payments.

Re: Negative Reporting

Anonymous — Tue, 16 Feb 2016 18:34:14 GMT

Even though they closed the account. Once the account is closed there is no montly payment right? If they report anything negative after the close date wouldnt that be considered inaccurate reporting? The account is closed so how can they legally report payments

Re: Negative Reporting

Skye12329 — Tue, 16 Feb 2016 18:43:25 GMT

If the account was closed with a 0 balance and the tradeline was in good standing. You have nothing to worry about, because it won't report anything after the closing month.

If there is still a balance you will need to continue making monthly payments, if you are late on a payment they might report it then.

Re: Negative Reporting

baller4life — Tue, 16 Feb 2016 18:45:07 GMT

You are still obligated to pay what you owe on time each month. The account is just closed for future charges. My understanding is they will continue to send you a statement with minimum payment due. I would hurry and pay the balance because it's killing your util having a balance on a closed account.

Re: Negative Reporting

FinStar — Tue, 16 Feb 2016 18:45:12 GMT

@Anonymous wrote:
Even though they closed the account. Once the account is closed there is no montly payment right? If they report anything negative after the close date wouldnt that be considered inaccurate reporting? The account is closed so how can they legally report payments

A closed account does not absolve you from your obligations OP. You will still get statements on the balance that you owe and they will still report it (regardless if it's closed). It doesn't just "disappear". They closed it due to the prior returned payment - some lenders do this. So, legally they can report this as accurate (negative) information if you fail to pay. Plain and simple. You may want to brush up on your Credit Card Agreement information.

Re: Negative Reporting

Anonymous — Tue, 16 Feb 2016 18:45:16 GMT

@Anonymous wrote:
Even though they closed the account. Once the account is closed there is no montly payment right? If they report anything negative after the close date wouldnt that be considered inaccurate reporting? The account is closed so how can they legally report payments

Even if the account was closed by them, you still are responsible for any balance on the card and if you don't make payments, you can be assured that they will report you as late. Nothing 'illegal' about them doing so.

Re: Negative Reporting

Anonymous — Tue, 16 Feb 2016 18:47:33 GMT

A closed acct just means you can't charge to it. It's closed but the debt doesn't go away. You still have to make monthly payments until the bal is paid off. Nothing bad can happen so long as you continue to make on time payments of at least the min due.

Re: Negative Reporting

Ghoshida — Tue, 16 Feb 2016 18:53:21 GMT

@Anonymous wrote:
Even though they closed the account. Once the account is closed there is no montly payment right? If they report anything negative after the close date wouldnt that be considered inaccurate reporting? The account is closed so how can they legally report payments

How much do you owe on that account as on the date of closing? Unless you have paid it off, you still owe them that money. Closing account means you cannot make any more purchases on the account, but what you owe is what you owe.

(1) I would call Walmart and ask them to reopen the account. They may or may not agree, but you can make the case with the documentation from the bank.

(2) I would pay off any remaining balance on the closed account. In my home country, I was ignorant of this policy as a college graduate and left a card unpaid once it closed. They kept on piling fees and stuff and it started to hit my credit badly. Only when AMEX slashed my limits citing negative remarks from another lender, I checked my credit report and found out what was happening, and paid off the dues. Act now before it snowballs.