topic Re: Why do some closed accounts continue reporting? in General Credit Topics

Why do some closed accounts continue reporting?

Anonymous — Sun, 18 Dec 2016 06:04:40 GMT

I've got multiple closed accounts on my credit report that have been closed for some time... 1 year, 2 years, 5 years and they still report every month "OK" as if I'm still making payments. Why is this the case and what causes this to happen with some accounts but not others? I'm trying to rationalize why a creditor would continue to waste their time reporting on a closed account month after month, year after year.

I appreciate any insight offered.

Re: Why do some closed accounts continue reporting?

Anonymous — Sun, 18 Dec 2016 06:09:00 GMT

@Anonymous wrote:
I've got multiple closed accounts on my credit report that have been closed for some time... 1 year, 2 years, 5 years and they still report every month "OK" as if I'm still making payments. Why is this the case and what causes this to happen with some accounts but not others? I'm trying to rationalize why a creditor would continue to waste their time reporting on a closed account month after month, year after year.

I appreciate any insight offered.

I had a Firestone (CFNA) account that was still reporting after my BK, even though I had assumed it was closed for inactivity, since it was last used in 2013. So I disputed it. Turns out it was still open, but finally closed as a result of my dispute

The point is - are you SURE these accounts are closed?

Re: Why do some closed accounts continue reporting?

Anonymous — Sun, 18 Dec 2016 06:33:59 GMT

Positive. They all state "closed by credit grantor" or "cancelled by credit grantor" which means they are in fact closed. Some I closed myself, others were closed on me by the creditor. They do still report every month though and it says the account status is "current." I just find this stuff odd. The account closed dates are accurate though, so I would assume at 10 years they'd fall off my reports but who knows... maybe the'll stick around if they are still being reported monthly? Maybe this could be an AAoA blessing in the future?

Re: Why do some closed accounts continue reporting?

Thomas_Thumb — Sun, 18 Dec 2016 07:26:56 GMT

@Anonymous wrote:
I've got multiple closed accounts on my credit report that have been closed for some time... 1 year, 2 years, 5 years and they still report every month "OK" as if I'm still making payments. Why is this the case and what causes this to happen with some accounts but not others? I'm trying to rationalize why a creditor would continue to waste their time reporting on a closed account month after month, year after year.

I appreciate any insight offered.

My closed accounts show a series of OKs on CRA credit reports - but the month-year is static. In other words the last OK has an associated date the same year as the account was closed.

Re: Why do some closed accounts continue reporting?

Anonymous — Sun, 18 Dec 2016 15:08:00 GMT

See, that's not what I have going on. Examples:

1 - Local CU CC account closed on 4/1/15, date last reported 11/11/16.

2 - Sears card closed on 2/1/14, date last reported 11/21/16.

3 - Care Credit account closed on 12/25/12, date last reported 10/5/16.

All 3 of these accounts have "OK" (green) reported every month from the time the account was closed through the month indicated above with the last reported date.

Re: Why do some closed accounts continue reporting?

Anonymous — Sun, 18 Dec 2016 19:47:59 GMT

Same here. I brought this up in the BK forum a while back. Hope this helps.

http://ficoforums.myfico.com/t5/Bankruptcy/Creditor-updating-reporting-after-BK-discharge/td-p/4517612

Re: Why do some closed accounts continue reporting?

Anonymous — Mon, 19 Dec 2016 05:06:48 GMT

beachglass,

I read through that thread, then the one linked in that thread and I still have not seen a concrete answer as to why closed accounts keep reporting. In my case, the 3 accounts in question were not "negative" accounts and they all contain only positive information... not that I think that really matters at all.

Re: Why do some closed accounts continue reporting?

Anonymous — Mon, 19 Dec 2016 13:07:05 GMT

I know, I never found a concrete answer. Was actually thinking of posting this question again in the BK forum, because going for a mortgage soon and need to clean some things up here. I think this is soley a bk issue, so hoping somewhere over there might have an answer this time.

Re: Why do some closed accounts continue reporting?

Anonymous — Mon, 19 Dec 2016 13:11:36 GMT

Just came across this.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Charged-off-account-still-reported-monthly-as-CO-Re-aging/td-p/3946918

Re: Why do some closed accounts continue reporting?

pizza1 — Mon, 19 Dec 2016 14:24:45 GMT

@Anonymous wrote:
I know, I never found a concrete answer. Was actually thinking of posting this question again in the BK forum, because going for a mortgage soon and need to clean some things up here. I think this is soley a bk issue, so hoping somewhere over there might have an answer this time.

Why would you want to get rid of closed positive accts? If they are in good standing, closed/paid ....let them report for the full 10 yrs. Its only helping you, not hurting you!

Negative acct are a different story....they report for 7 yrs from DOFD, and you would have to GW or something to try and get them off your reports. but good positive accts, leave them be!

Re: Why do some closed accounts continue reporting?

Anonymous — Mon, 19 Dec 2016 14:44:15 GMT

Not trying to get rid of those accts, there are 3 accounts on my credit report, closed with BK, however those 3 are still updating every mounth. This is what I am questioning. They are reporting -0-. debt incl in bk, however I question whether these 3 accts updating every month are causing more damage to my CR. All others Inc In Bk, either dropped off or no longer repot/update. Just these 3. When I pull my CR on my fico, these 3 show up as negative accounts, the others do not. They stopped reporting years acct when the accts were involved in BK. Bk was closed over 2 yrs ago..mo

What is the purpose of these 3 accounts reporting everymonth when there is no balance due and they were involved in BK and closed.

Re: Why do some closed accounts continue reporting?

Anonymous — Mon, 19 Dec 2016 15:15:46 GMT

@pizza1 wrote:

Why would you want to get rid of closed positive accts? If they are in good standing, closed/paid ....let them report for the full 10 yrs. Its only helping you, not hurting you!

But is it helping? I'm not suggesting they are hurting, but what benefit would there be (profile or scoring wise) of a closed account continuing to report? I mean if it's closed it's closed, right? A closed account can either be positive or negative. So, if it's positive (perfect payment history) it's already viewed as a positive account so I'm not sure what continued reporting on a closed account would accomplish.

Re: Why do some closed accounts continue reporting?

Anonymous — Mon, 19 Dec 2016 15:17:03 GMT

@Anonymous wrote:
I know, I never found a concrete answer. Was actually thinking of posting this question again in the BK forum, because going for a mortgage soon and need to clean some things up here. I think this is soley a bk issue, so hoping somewhere over there might have an answer this time.

I don't think can be soley a BK issue as I've never had a BK and am experiencing this on multiple accounts?

Re: Why do some closed accounts continue reporting?

pizza1 — Mon, 19 Dec 2016 15:19:14 GMT

@Anonymous wrote:
Not trying to get rid of those accts, there are 3 accounts on my credit report, closed with BK, however those 3 are still updating every mounth. This is what I am questioning. They are reporting -0-. debt incl in bk, however I question whether these 3 accts updating every month are causing more damage to my CR. All others Inc In Bk, either dropped off or no longer repot/update. Just these 3. When I pull my CR on my fico, these 3 show up as negative accounts, the others do not. They stopped reporting years acct when the accts were involved in BK. Bk was closed over 2 yrs ago..mo
What is the purpose of these 3 accounts reporting everymonth when there is no balance due and they were involved in BK and closed.

These are negative accts. They were IIB, and wont drop until the DOFD...Its not hurting you by them updating it, as long it its $0 bal/IIB it wont matter.

If they start updating with changes, and reporting balances etc...then thats a different story, and Id hop on that so fast, like if they are reporting late monthly after your file date, which they cant report anymore after that, then thats a problem.

I have 6 IIB accts still reporting, and my DOFD was in 03/2012. Those accts wont drop off my report until 2019. A few of them update monthly, but still remain $0/bal and IIB which is the main thing. Im not wanting them to drop off before then either, they are my oldest accts dating back to 1999/2000, and if they were to drop off now off my reports, my AAOA and AHOA would plummet, making my scores tank.

Those negative accts are whats keeping my AAOA a float now with all my new accts over the last few years in rebuilding. Even negative/closed accts count in your AHOA.

Sure itll make your reports look cleaner, but right now, Im not touching my IIB accts.

Re: Why do some closed continue reporting?

Anonymous — Mon, 19 Dec 2016 15:37:34 GMT

Pizza1. I have to agree. Touching these accounts that are updating monthly would crush my score since they are some of my oldest accounts. Just couldnt figure as Brutal pointed out, why if closed do some still report/update monthly. Very Confushing. I am afraid to touch anything right now. Took a huge score drop in Sept and still can't figure out why. Lost total of 62 pts between the 3 bureaus. Only thing I could find was two cards had reported, but never recovered so that's not it. Hence, why I was jumping on this train, thinking, hmmmm, could it be this, the 3 cards still updating every month, but that could open a bad can of worms and like you said, cause them just to drop the acct sending score down after losing aged accounts. My hunt continues for the cause.

Re: Why do some closed continue reporting?

Revelate — Tue, 20 Dec 2016 02:36:21 GMT

BBS: every computer system has bugs, and that's probably just what happened here.

If they're reporting as positive tradelines just take the money and run. Also it would help to know where you are seeing this: EX for example while everything looks to be OK's just like the rest of them, looking at the date headers they're different years and I don't have what you have going on, DOLA is clearly on the close date.

TT if you have closed accounts still showing 2016 OK's but on closed tradelines with a DOLA back in the past I don't know what to say honestly .

Re: Why do some closed continue reporting?

heavyjay — Wed, 21 Dec 2016 01:16:23 GMT

This account was closed in 2009 for non-use. It kept reporting either OK or ND until Sept 2012 when it finally reported Closed. I get the age advantage for 3 extra years.

Re: Why do some closed continue reporting?

Anonymous — Wed, 21 Dec 2016 01:29:31 GMT

I appreciate the above example, but I'd like to make clear that this isn't what's going on with my file. You basically said your account was closed but didn't report as being closed for another 3 years. All of my accounts in question reported closed immediately after being closed, yet still continue to report monthly even though they are closed.

Re: Why do some closed continue reporting?

Revelate — Wed, 21 Dec 2016 02:11:58 GMT

Post the report snapshot, this discussion is at cross-purposes at this point.

Re: Why do some closed continue reporting?

Anonymous — Wed, 21 Dec 2016 02:32:04 GMT

Cross-purposes?

Here's an example of what I'm talking about: