topic Re: charge off/capital one in Rebuilding Your Credit

charge off/capital one

Anonymous — Mon, 01 Apr 2019 03:31:19 GMT

hi all! i have a tiny question. long story short i had charge off from cap1 back from 2017, it was sold to portofolio recovery and i paid it to them and removed off my report. however i still have charge off cap1 on report showing history of missed payments,is that normal? i thought once they sold account it should be reset to zero all across!

Re: charge off/capital one

Brian_Earl_Spilner — Mon, 01 Apr 2019 03:34:04 GMT

The cap1 is closed and not updating as of when they sold it off to portfolio. You got the collection off, but unless you can get cap1 to Goodwill the account off your reports, it'll be there for about 7 years

Re: charge off/capital one

Anonymous — Mon, 01 Apr 2019 08:44:53 GMT

CapOne is tough too. They’ll continue to regularly report that chargeoff and they’re notoriously difficult to get any concessions out of for GW. I was able to EE an old CapOne chargeoff from my TU report recently, and the TU rep told me it was still updating as a PIF chargeoff every month. It was definitely suppressing my score, as I gained 18 points when it was deleted.

Re: charge off/capital one

DR527 — Mon, 01 Apr 2019 09:43:02 GMT

No that's not normal. I recently made the same mistake, I paid off a old CO Capital one account and capital one killed my on time payment history. They had my account reporting opened And not closed since 2016. Even though it was a closed charge off account, it was only showing closed on one of my credit bureaus. The other two were still open just not updating. Over night Capital One added 3 years of late payments to the two open accounts. And only updated the balance on the one closed account. I have 0 months of on time payments as of right now 🤦‍♂️. I'm currently fighting it. According to the Fair Act If your account is closed and CO, it shouldn't say anything but CO. No payment history or PIF status.

Re: charge off/capital one

SupaWmn41 — Tue, 31 Dec 2019 03:45:38 GMT

Hello I am curious to know if you were able to get Cap One to correct?

Re: charge off/capital one

Anonymous — Wed, 01 Jan 2020 16:56:09 GMT

I faced a similar issue. In 2015, my Capital One account was charged off. Although the account was closed, Capital One was reporting the state of my account at charge off, which was a balance of $2800 on a card with a limit of $2500, and they reported it each month as 120 days late since the date it was closed. It's been KILLING my credit score for years. I paid it in full a few weeks ago and I'm still awaiting my report to update.

However, after combing through the forums, I'm afraid they won't update the status each month since the date it was closed. Cap One killed my on-time payment percentage.

Did Cap One report correctly in my case? Should I continue to dispute? Any useful threads we should consider when fighting Capital One with respect to reporting practices and GW deletion?

Thanks!

Re: charge off/capital one

thornback — Wed, 01 Jan 2020 17:35:21 GMT

@Anonymous wrote:
hi all! i have a tiny question. long story short i had charge off from cap1 back from 2017, it was sold to portofolio recovery and i paid it to them and removed off my report. however i still have charge off cap1 on report showing history of missed payments,is that normal? i thought once they sold account it should be reset to zero all across!

Yes. Showing the historical payment history is normal.

If CapOne no longer owned the debt at the time you paid PRA (ie. sold the debt to PRA), then they have no obligation to update the current status of account as paid (they wouldn't even be made aware of any payment made).

If CapOne still owned the debt and only gave PRA collection authority and you paid PRA, then they would have notified CapOne that the debt was paid and CapOne would update the current status of their charge-off tradeline as Paid (or Settled for Less). However, the historical payment history showing all the late payments leading to the charge-off status would remain as that is the factual, historical data of the account.

Re: charge off/capital one

thornback — Wed, 01 Jan 2020 17:32:49 GMT

@DR527 wrote:
According to the Fair Act If your account is closed and CO, it shouldn't say anything but CO. No payment history or PIF status.

Where did you read this?

Once an account enters a charge-off status, it will appear on your reports as such, along with the amount of the outstanding debt and all historical payment data - including late pays that led to the charge-off. The current status of the account, which reflects the status of the account as of the last reporting, will be a delinquent charge-off. The creditor may continue to update the payment history for the account monthly, or sporadically, with a new charge-off notation for every month the outstanding debt remains unpaid. The current status of the account will also continue to be reported as a Charge-Off.

If you pay the outstanding debt to the original creditor, the current status of the account will be updated to reflect Paid (or Settled for Less), Closed. However, the historical payment data, including all late payments that led to the account being charged-off, will remain as it is considered factual prior data -- it is not removed once the account is no longer delinquent (paid). Once this final update occurs, there should be no future updating of the account unless the consumer disputes information reported, leading to an investigation and, subsequently, an update of information.

Now -- when collection agencies are involved, things can go one of two ways:

(1) The original creditor retains ownership of the debt but assigns collection authority to a collection agency to pursue payment. In this case, if you pay the collection agency, they will inform the original creditor if the debt has been paid (if in full or settled). Once notified, the original creditor will update their tradeline to reflect the current status of the account as closed, paid (or settled). The historical payment history will remain as factual data - as explained previously.

(2) The original creditor sells the debt to a collection agency. Once this happens, the original creditor no longer has any obligation to service this account. They will update their tradeline to reflect a $0 balance -- because the debt has been sold -- but the current status will remain delinquent, as a charge-off. There will also be a notation stating the account has been sold or transferred to a 3rd party (or something to that effect). The historical payment history will remain as is. If you then pay the collection agency that now owns the debt - the collection agency will adjust their collection tradeline accordingly (or remove it if you negotiated a PFD). However, the collection agency will not notify the original creditor of payment because they have no obligation to do so since they now own the debt.

Re: charge off/capital one

Red1Blue — Wed, 01 Jan 2020 21:18:06 GMT

I think that is Synchrony is doing. They sold off some of the charged off accounts to collection agency. The information about the accounts they sold are completely removed the credit report. Now they are showing only the company which purchased the debt as the creditor.

Re: charge off/capital one

FireMedic1 — Thu, 02 Jan 2020 01:18:25 GMT

Paging @DR527

@thornbackis pointing something out to you from April you posted.

They are on here TB a couple days ago.

Re: charge off/capital one

thornback — Thu, 02 Jan 2020 01:36:35 GMT

@FireMedic1 wrote:
Paging @DR527
@thornbackis pointing something out to you from April you posted.
They are on here TB a couple days ago.

Dude... I didn't even realize the posts were that old

I saw the newer ones today and assumed the entire thread was new -- didn't even respond to the folks with posts in recent days...

Re: charge off/capital one

FireMedic1 — Thu, 02 Jan 2020 09:21:50 GMT

@thornback wrote:
@FireMedic1 wrote:
Paging @DR527
@thornbackis pointing something out to you from April you posted.
They are on here TB a couple days ago.
Dude... I didn't even realize the posts were that old
I saw the newer ones today and assumed the entire thread was new -- didn't even respond to the folks with posts in recent days...

@thornback