topic Re: 30 days late in General Credit Topics

30 days late

Anonymous — Thu, 19 Jan 2012 22:04:07 GMT

I have a late payment on my credit report either in 12/2004 or 1/2005. This is a late payment on an equity line of credit.

The line of credit was paid off in Jan 2005 (the same month when the late payment was reported). It will be 7 years by the end of this month. Needless to say I am anxiously awaiting for it to fall and get a notification of a credit score change (hopefully up).

However, the 30-day late appears as currently 30-days late. It does not say: "Was 30 days late one time in 2004 or 2005)" So, I am concerned that because it says "currently 30-days late" that it will not get picked up as being paid off seven years ago in 2005. Have any of you seen situations like this? I already contacted the bank to tell them of this error and all they have told me is: Don't worry ,when creditors are reviewing they will see that it was paid off. This is how we report."

Thank you for your help.

I'm sorry not sure if I explained myself correctly.

Re: 30 days late

RobertEG — Thu, 19 Jan 2012 22:19:37 GMT

The important status date is the "Current Status," which reflects a snapshot of either your current level of account delinquency if the account is not closed, or if closed, whether the debt has been paid.

There is one and only one proper current status for a closed account when the debt has been accepted by the creditor as having fulfilled the debt.

That status is simply "Paid."

When the debt is paid, the prior status of any delinquency is overwritten by the new current status of paid. There is simply no such thing as a current status of 30-late on a paid account. Period. The prior delinquency status is retained under other reporting codes, which in your case would be the Payment Rating code.

The code currently being reflected in your commercial CR has to be the Payment Rating code, which reflects your highest level of delinquency prior to its current status of paid.

If it is, in fact, still being reported under Current Status, then the creditor has simply failed to update to the correct current status.

Others viewing your CR wont "see" that it was paid by looking at other items, such as $0 balance. Reporting of $0 balance could reflect that the debt was unpaid, and sold.

The purpose of current status is to reflect the delinquency status while the account is active, and to inform others of its final payment status once the debt is paid.

It does matter.

The CRA does not use current status to determine CR exclusion date of the delinquency. It uses your payment history profile of the actual date of the delinquency.

So it wont affect its CR exclusion date. But it does incorrectly fail to show your satisfaction of the debt.

If the creditor wont update, file a direct dispute with them, and put them under a 30-day dispute period to provide notification to you as to why they are not required to report the correct current status. They have no basis to refuse.

Re: 30 days late

Anonymous — Thu, 19 Jan 2012 22:24:30 GMT

Where are you getting this info from, meaning are you looking at a MyFico report, a CMS report, a full report from the CRA?

I would not expect to see a drastic increase to your score from one single 30 day almost 7 yrs old (I'm just speculating of course).

ETA: Please disregard my reply, as RobertEG has already given you a very comprehensive answer to your question.

Re: 30 days late

Anonymous — Thu, 19 Jan 2012 22:33:50 GMT

Thank you so much. I got this information from the MyFico TU credit report. And yes this account was in fact paid off. I sold this house in Dec 2004 and thus all balances were paid off. I do not owe anything to them. I have disputed with the bank account but perhaps I did not include specific language that needs to be included.

You mention "file a direct dispute with them and put them under a 30-day dispute" I am really sorry to say but could you please explain further. So does that mean I will send them a letter and specifically say "this is a 30-day dispute"? I have documentation to prove they were paid off.

Does your explanation (which was through) mean that this account will not drop from my CR at the end of this month?

Again, thanks for your response and for helping me correct this.

Re: 30 days late

Anonymous — Thu, 19 Jan 2012 22:36:05 GMT

Thanks. Yes this is from the MyFico TU credit report. And yes I agree it will probably not be a drastic increase (if it falls).

Re: 30 days late

RobertEG — Thu, 19 Jan 2012 22:47:40 GMT

Mail directly to the credtior:

"This is a direct dispute under FCRA 623(a)(8) of the inaccurate reporting of the Current Status of the identified account to the credit reporting agencies.

Attached is a copy of that portion of my current credit report clearly reflecting a current status of other than paid.

"The account was paid and closed. As such the Currrent Status on the account is "Paid." Your current reporting does not reflect this status, and thus is inaccurate.

I request that you investigate the accuracy of the reported status and promptly update to the correct status to "Paid", as required under FCRA 623(b)(1)(E)(i)."

Re: 30 days late

Anonymous — Thu, 19 Jan 2012 22:49:53 GMT

Thank you I will mail them the letter immediately. Thanks again.

Re: 30 days late

Anonymous — Fri, 20 Jan 2012 12:19:11 GMT

I told you RobertEG has a ton of knowledge, I only can only hope to one day have .01% of RobertEG's knowledge.

Best of Luck to you.