topic Re: CO Help! in Rebuilding Your Credit

CO Help!

Anonymous — Sat, 16 Feb 2013 20:32:12 GMT

Last summer (12') I paid a CO that was on my account for a few years from GM Financial. After I paid the CO in full all of my credit reports updated to 48 late payments instead of a CO (Paid in Full). Is there anything I can do?

Re: CO Help!

Anonymous — Sat, 16 Feb 2013 21:28:05 GMT

Welcome to the forums.

Did it impact your score? Is the TL showing paid?

Re: CO Help!

Anonymous — Sat, 16 Feb 2013 21:44:05 GMT

Yes, it dropped my equifax score (FICO) by 30 points. I tried to dispute it after it was paid, but instead GM financial updated the status to charge off paid. The balance says zero, but it also updated to 48 missed payments. This looks really bad.

Re: CO Help!

Anonymous — Sat, 16 Feb 2013 22:13:52 GMT

None of the lates are showing after you paid it are they?

How long ago was this CO'd?

Re: CO Help!

Anonymous — Sat, 16 Feb 2013 22:22:26 GMT

GM is no longer reporting anything else since I paid. It was CO'd in 2008. They told me it would fall off in 2015. I wish I would not have paid it.

Re: CO Help!

Anonymous — Sun, 17 Feb 2013 01:34:23 GMT

Paying it should not have dropped your score. Something else is has to be going on. When was the last late reported?

Re: CO Help!

Anonymous — Sun, 17 Feb 2013 03:06:05 GMT

This is copied directly from my report.

Sep, 2012

Apr, 2006

Dec, 2007

XXXXX5887

$573

Installment

Individual

$408

Auto Financing

Descriptions [?]

Paid charge off
Auto

No contact information provided by Equifax

Balance [?] Current Status [?]

$0	Bad debt/collection

Seven year payment history [?]30 days late60 days late90+ days late

4 times

0 times

48 times (Aug 2012, Jul 2012, Jun 2012, May 2012, Apr 2012, Mar 2012, Feb 2012, Jan 2012, Dec 2011, Nov 2011, Oct 2011, Sep 2011, Aug 2011, Jul 2011, Jun 2011, May 2011, Apr 2011, Mar 2011, Feb 2011, Jan 2011, Dec 2010, Nov 2010, Oct 2010, Sep 2010)

Recent payment history [?]9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 82010 2011 2012

Collection

Worst Delinquency [?]

Bad debt/collection

The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.

Re: CO Help!

Anonymous — Sun, 17 Feb 2013 03:32:01 GMT

Was it closed before or after you paid the CO?

The last late payment I see is from Aug 2012. Has another one been reported?

The current status should say paid collection/CO.

Re: CO Help!

Shogun — Sun, 17 Feb 2013 04:22:15 GMT

I'm a little confused on this one. Where did you get that report from? It should not have dropped you like it did. For one thing, I can't believe the OC held onto the account for so long without doing a CO and selling to a CA. Secondly, I don't like the way it updated after paid.

On a positive note, it is now paid and you no longer owe the debt. I would try a few rounds of GW letters and see where that gets you.

Re: CO Help!

Anonymous — Sun, 17 Feb 2013 19:04:19 GMT

I'm pretty sure it was closed before I paid it. I do know that before it was paid, it did not show late. But only as a CO. I got that info from MyFico EQ report.

Re: CO Help!

RobertEG — Sun, 17 Feb 2013 19:18:17 GMT

Monthly delinquencies relate to the status each month when they were billing on the account. A CO is totally independent, and is related only to the reporting that they took a business accounting measure on the delinquent account. Each of those reportings, provided they are accuratem remain in the payment history regardless of the uttimate payment or non-payment of the debt. Payment of the debt does not negate the fact of prior reporting of delinquencies or a CO.

Current status is siimply a Kodak moment showing its status as of the last reporting. It does no reflect prior payment history.

If the debt was satisfied, the current status is paid, and the current balance is $0. One does not pay a CO, they pay the debt.

Provided the prior delinquencies and CO are accurate, they are not precluded from reporting them after satisfaction of the debt.

Their reporting may have been unnecessary, but I dont see a disputable inaccuracy.

Re: CO Help!

Anonymous — Sun, 17 Feb 2013 19:35:02 GMT

I have the same situation as you wih a paid CO from a utility bill. It has been paid but the creditor (Edison) refuses to remove it. I called them and asked and they said they can only provide a letter saying that its been paid. That paid collection is giving my score a 50 point drop to my EQ report and 52 point drop to my EX report. TU is not reporting the CO account so my score with them is 745.

Has anyone had any success sending a PIF letter to the CBA and having them remove the CO?

Re: CO Help!

Anonymous — Sun, 17 Feb 2013 20:19:56 GMT

@RobertEG wrote:
Monthly delinquencies relate to the status each month when they were billing on the account. A CO is totally independent, and is related only to the reporting that they took a business accounting measure on the delinquent account. Each of those reportings, provided they are accuratem remain in the payment history regardless of the uttimate payment or non-payment of the debt. Payment of the debt does not negate the fact of prior reporting of delinquencies or a CO.

Current status is siimply a Kodak moment showing its status as of the last reporting. It does no reflect prior payment history.
If the debt was satisfied, the current status is paid, and the current balance is $0. One does not pay a CO, they pay the debt.

Provided the prior delinquencies and CO are accurate, they are not precluded from reporting them after satisfaction of the debt.
Their reporting may have been unnecessary, but I dont see a disputable inaccuracy.

There were no monthly delinquencies reported. It always reported as a CO until it was PIF, then they changed the CO to late payments.

Re: CO Help!

Anonymous — Sun, 17 Feb 2013 20:20:40 GMT

@Anonymous wrote:
I have the same situation as you wih a paid CO from a utility bill. It has been paid but the creditor (Edison) refuses to remove it. I called them and asked and they said they can only provide a letter saying that its been paid. That paid collection is giving my score a 50 point drop to my EQ report and 52 point drop to my EX report. TU is not reporting the CO account so my score with them is 745.

Has anyone had any success sending a PIF letter to the CBA and having them remove the CO?

The creditor does not have to remove a TL just because it is paid.