topic Re: Late payments after charge-off in Understanding FICO® Scoring

Late payments after charge-off

Anonymous — Thu, 05 Jul 2007 21:38:37 GMT

Hello,

On my Experian and Equifax reports, I have a Bank of America account that shows late payments taking place within the last 10 months, while the account had a last activity date ranging from Nov 2002 to Aug of 2003 (the 2 reports varied).

I don't understand how someone can be late on an account 3 - 4 years after it had been charged off. My credit reports that I had received directly from those credit bureaus do not reflect those recent lates, only the myFICO reports do, and I have a feeling that these recent lates are negatively affecting my score.

I spoke with a rep of yours a few months back and he had told me that those recent lates are very likely hurting me, and he suggested that I dispute with the credit bureaus directly. Although they were not showing on the credit bureaus reports, I followed that advice. The reports came back looking the same (without those lates), but they are still showing on the myFICO reports.

(Equifax ended mixing mine and my brothers files which dropped my score further, but that's another story).

My question: Can you guys remove the lates that had taken place AFTER the last activity date, especially when those lates are not even showing on the credit reports issued by the credit bureaus directly?

Thank you for your anticipated help and for opening up this type of dialogue with your customers.

Re: Late payments after charge-off

Tuscani — Fri, 06 Jul 2007 00:19:55 GMT

Legally they can report that way if the CO is not yet paid because technically it IS still past due.

Re: Late payments after charge-off

2IMPROVE — Fri, 06 Jul 2007 03:46:29 GMT

I noticed the same thing on my Experian, the last activity on my charge-off was 2002 as well. I just sent a dispute letter to Experian last week regarding this. Will see how they respond.

Re: Late payments after charge-off

Anonymous — Fri, 06 Jul 2007 15:11:18 GMT

Tuscani,

Question... they can legally report something as 90 days past due when it's more than 1,800 days past due? Wouldn't 90 days late imply that a person stopped paying an account just a few months ago? As most in this forum know, recent negative activity is much more damaging to the FICO score than older negative activity.

If the credit bureaus themselves are not reporting it as 90 days late in December of 2006, why is Fair Isaac?

If your answer is the same: "because they can legally do it," you may be right, you may be wrong... it would probably take a legal precedent from a judge to clarify that argument. But that's not my point. My question is... why would they go through the trouble of changing the credit bureaus reporting knowing full well it will artificially lower my score?

For example, if slapping someone was legal, why would someone want to slap another person to begin with?... simply "because it's legal?" Something may be legal, but it if causes harm to another person and can be justified as "legal", well then that's just malicious, plain and simple.

Re: Late payments after charge-off

Tuscani — Fri, 06 Jul 2007 15:30:53 GMT

depends.. are the lates reporting EVERY month, or just reporting after the DOLA?

Re: Late payments after charge-off

Anonymous — Fri, 06 Jul 2007 16:25:49 GMT

Tuscani,

My EXPERIAN report directly from EXPERIAN reads:

30 days as of Feb 2003.... then 60, 90, 120, 150, 180, C/O follow right after. No more "late payments" from that point.

My EXPERIAN report from myFICO reads:

30 days late - 6 times

60 days late - 1 time

90+ days late - 3 times (Dec 2006, Sep 2006, Oct 2003)

_____________________

All I've asked was for Fair Isaac to remove those dates next to the 90-day late field? EXPERIAN does not even have those lates. The Fair Isaac rep told me I would have to dispute it with the credit bureaus directly... I did... the credit bureaus came back with the same info that they've always had, WITHOUT those lates. Fair Isaac took it upon themselves to add those dates.

This is done with EQUIFAX as well. The only one that is reported accurately is TRANSUNION, which also happens to be my highest score.

Re: Late payments after charge-off

Anonymous — Fri, 06 Jul 2007 17:45:55 GMT

DW is experiencing the same thing. A paid collection showing on all 3 CRs (paper copies from the CRAs as well as MyFico ScoreWatch) is showing no lates reported anywhere--except on her MyFico EX report. Paper copy of her EX report shows no lates reported on this TL. Her EX FICO is 70 lower than her TU FICO. These phantom lates appears to be the principal contributors.

Re: Late payments after charge-off

Tuscani — Fri, 06 Jul 2007 20:23:44 GMT

Interesting...

Fair Isaac can't make changes to your reports. But there is something obviously wrong here.

I will see what I can dig up.

Re: Late payments after charge-off

2IMPROVE — Fri, 06 Jul 2007 21:37:23 GMT

I called Experian today regarding this, and was informed that I need to contact the creditor. She said that I previously disputed the item and it proved to be valid. I told her at the time the status did not say what it says now " Charge Off/Now paying".

She was very short with me and said I needed to contact the creditor. I sent a certified DV letter to the creditor today.

Message Edited by 2IMPROVE on 07-06-2007 02:37 PM

Re: Late payments after charge-off

Anonymous — Fri, 06 Jul 2007 21:46:59 GMT

Sorry for the late chime in, but I would like the answer to OP's question also. I have the same issue with the way charge-offs are reporting. Another issue, although it is similar is that I have accounts reporting as currently derog, although they are paid in full and closed. How in the world can it be currently derog if there is no balance owed? Very odd. I hope Tuscani can figure this out for us...

Re: Late payments after charge-off

Anonymous — Fri, 06 Jul 2007 22:49:42 GMT

Even after an account's charged off, there's still a delinquent balance owing. It is common to continue to get late payment reports after the fact of charge-off. Note that charging off is really only for accounting purposes; the bank no longer gets to count that amount on the asset portion of its balance sheet but instead has to expense it.

However, this doesn't change your relationship to that debt at all.

Re: Late payments after charge-off

Anonymous — Sat, 07 Jul 2007 13:03:53 GMT

Yes, that would be technically true if a balance was still owing. However, if the balance is paid, then there is no balance owing and the account should read paid/closed. Status should not read derog as it makes the reader assume that the account is currently derog when in fact it could have been paid out 2-4 years prior. I have yet to figure out who places the derog status on the accounts, but I think it is the CRA's.

Re: Late payments after charge-off

Anonymous — Wed, 11 Jul 2007 14:08:21 GMT

Hi Tuscani,

Just following up:

In my email dated 7/6/07 @ 9:25am I explained how Fair Isaac added those recent dates of being 90 days late on the myFICO Experian report (whereas Experian directly does not show those recent dates).

In your email dated 7/6/07 @ 1:23pm you mentioned that Fair Isaac cannot add information, but that you were going to look into this.

Just checking to see if you've gotten any feedback about this? Thanks Tuscani.

Re: Late payments after charge-off

Anonymous — Wed, 11 Jul 2007 18:52:39 GMT

Based on information I got from Experian while in a lawsuit with a 3rd party, while the Metro2 format does cover "Paid, was a chargeoff," not even Experian's data is rich enough to cover this in the consumer reports they issue. I can only hope it's a planned upgrade.

Re: Late payments after charge-off

Anonymous — Wed, 11 Jul 2007 19:55:28 GMT

Wow, that bites. I hope that is in the planned upgrade. I mean, for cyring out loud, you pay the charge off, zero balance the account and it's still reported as derog. So much for accurate reporting....

Re: Late payments after charge-off

Anonymous — Thu, 12 Jul 2007 06:19:31 GMT

dazednconfused wrote:
you pay the charge off, zero balance the account and it's still reported as derog. So much for accurate reporting....

It is accurate. A paid CO is a derog.

Re: Late payments after charge-off

Anonymous — Thu, 12 Jul 2007 10:44:21 GMT

Apparently. But it sure doesn't seem right to me. How are you supposed to get ahead when you do the right thing? BTW Noah, do you know how long it will stay on your report? From the date of the CO or the date that you paid the CO? I do hope it is from date of charge off or first delinquency...

Re: Late payments after charge-off

Anonymous — Thu, 12 Jul 2007 17:08:40 GMT

dazednconfused wrote:
Apparently. But it sure doesn't seem right to me. How are you supposed to get ahead when you do the right thing? BTW Noah, do you know how long it will stay on your report? From the date of the CO or the date that you paid the CO? I do hope it is from date of charge off or first delinquency...

This is something I often rant about, and I'll take the opportunity to do so again.

Never pay a collection or chargeoff, unless:

a) You have to (served with a summons and complaint or you think they will, Prime mortgage lender won't give you a home loan until you PIF the CO or COLL, et al.)

b) You get them to agree to PFD

They prey on a person's lack of knowledge. You, me, and many others have been stung by this. Talked to too many people who've seen paid COs and paid COLLs drop from their CRs and they've seen big score improvements. It is complete B.S. to believe a paid CO or COLL does you any good. It is complete B.S. to believe that simply paying a CO or COLL does you any good.

Paying a CO or COLL does not change the CRTP. Still drops 7 years, give or take 180 days, from DOFD.

If it is now paid, try a GW letter to the OC.

If it was settled for less than the full amount, then methinks one has grounds to pursue a PFD still.

Re: Late payments after charge-off

Anonymous — Thu, 12 Jul 2007 19:57:13 GMT

Yeah, unfortunately, I didn't know what I know now and stumbled onto this site and others after I refi'd my mortgage in May. Had to pay some of them off, otherwise no go on the loan. Sucks big time for me...............

Re: Late payments after charge-off

Anonymous — Thu, 12 Jul 2007 22:41:15 GMT

Lates always help your scores!