topic Re: Installment Loan Closed Suddenly Reporting Again in General Credit Topics

Installment Loan Closed Suddenly Reporting Again

WoodlandFlora — Sun, 04 Mar 2018 17:59:53 GMT

We had a weird thing happen and would appreciate some insight. We had a 48 month auto loan. It was taken out 10/2004. Last payment was 2/2008. Shows closed as of 8/2009. No clue why it took that long to show closed.

Suddenly, we are getting notices showing it has been reported as closed of Feb 2018. Account was never late. We have high scores (780-800+ for both of us) and have had those scores consistently.

Is it because it hit the ten year mark after last payment? It is showing that it will stay on our report until 2028. So baffled as to why it has been closed/paid for 10 years and is now showing a new update of paid/closed.

Help!

Re: Installment Loan Closed Suddenly Reporting Again

Anonymous — Sun, 04 Mar 2018 18:18:15 GMT

As long it is clear that the account (as it reads on the report) does not have any negative information associated with it (late payments) and as long as the status correctly reads "closed" and shows a zero balance, it sounds like you have been handed a gift. That 14-year old account would have fallen off your reports next year and hurt your AAoA when it did so. If it is your oldest account that would have hurt another factor too.

Now it will continue to age and stay on your reports for another 10 years. Sweet.

Re: Installment Loan Closed Suddenly Reporting Again

WoodlandFlora — Sun, 04 Mar 2018 20:10:27 GMT

We were never late on that or any other account, thankfully. It shows closed, zero balance and has for ages. We’ve bought another home since the loan closed (last year) and gotten credit cards. It has never been an issue. It’s just odd it suddenly reported again.

Nice to have the AAoA hang around, but I always side eye changes like that and worry something is awry.

Re: Installment Loan Closed Suddenly Reporting Again

RobertEG — Sun, 04 Mar 2018 23:19:03 GMT

Was the account updated for some other reason, such as some other info had changed, requiring mandatory update per FCRA 623(a)(2)?

Perhaps the reporting of closed was not in fact a change, but merely the repetition of its current status, with the update being made to reflect some other change? As set forth in the joint CRA reporting manual, status of Closed occurs on an installment loan when it is first paid in full.

Re: Installment Loan Closed Suddenly Reporting Again

WoodlandFlora — Mon, 05 Mar 2018 01:47:45 GMT

I literally do not know what could have changed. I mean it’s been 14 years since we opened it and 10 years since date of last payment. It has consistently said closed, but Experian said congratulations your loan is reported as zero balance when they concur it has said that for the last ten years and was never delinquent, nor ever late. The other bureaus report it as closed as well and has been for years and years. All I am figure is that it is the ten year anniversary of our final payment of paying the loan in full. I do not know what else it could be.

Re: Installment Loan Closed Suddenly Reporting Again

Anonymous — Mon, 05 Mar 2018 01:58:54 GMT

@WoodlandFlorawrote:
We had a weird thing happen and would appreciate some insight. We had a 48 month auto loan. It was taken out 10/2004. Last payment was 2/2008. Shows closed as of 8/2009. No clue why it took that long to show closed.

Suddenly, we are getting notices showing it has been reported as closed of Feb 2018. Account was never late. We have high scores (780-800+ for both of us) and have had those scores consistently.

Is it because it hit the ten year mark after last payment? It is showing that it will stay on our report until 2028. So baffled as to why it has been closed/paid for 10 years and is now showing a new update of paid/closed.

Help!

Was this by any chance on Experian only or all CRA"s?

Re: Installment Loan Closed Suddenly Reporting Again

WoodlandFlora — Mon, 05 Mar 2018 02:05:42 GMT

Only Experian updated to say the status had changed (when they still state that it has been closed for years).
TU and EQ still show closed/paid/good standing as of 2/2008.

Re: Installment Loan Closed Suddenly Reporting Again

Anonymous — Mon, 05 Mar 2018 02:12:31 GMT

@WoodlandFlorawrote:
Only Experian updated to say the status had changed (when they still state that it has been closed for years).
TU and EQ still show closed/paid/good standing as of 2/2008.

Something is going on with Experian suddenly updating old closed account. I have student loans that were closed in 2013 that suddenly updated in Dec, caused my score to drop 21 points, because it was a negative acct and the update makes it look recent. I have filed a complaint with the CFPB because of this.

Re: Installment Loan Closed Suddenly Reporting Again

WoodlandFlora — Mon, 05 Mar 2018 02:20:43 GMT

Interesting! Good to know. I mean it bumped us up, which is great, but it isn’t legit to me given how old it is/how long ago it’s been paid. We were at 790 and 805 for my husband and we went to 793/808 respectively. Again, great, but it feels disingenuous and wrong.

I am so sorry that happened! That is awful. Makes you wonder what is afoot that they are doing this. I sure hope you get it fixed.