topic Re: Charge Off Reporting After Paid in Rebuilding Your Credit

Charge Off Reporting After Paid

Anonymous — Thu, 27 May 2021 18:45:54 GMT

Hello all: So...2017 was a bad year for me. Had 4 accounts that I has having problems keeping up with. After struggling for a few months I got back on track with all but one which resulted in a charge off. Experian reported the late payments which turned into a CO and then it was paid 11/17 and they showed OK/paid and stopped reporting. However, that's when Equifax and TU started reporting it as a CO and did so for the next 2 years until 12/19. My question is how does that happen and how much is that hurting my score? Thanks in advance.

Re: Charge Off Reporting After Paid

OmarGB9 — Thu, 27 May 2021 21:37:28 GMT

Not sure how it happened, but after it was paid, the updates should've stopped all across the board. Definitely dispute on EQ and TU and upload any documentation you have of when it was paid off.

As for how much it's affecting you, it's impossible to say exactly how much, but it's definitely hurting because it should've stopped updating and allowed to age since 11/17. Monthly updates of a negatives suppress scores.

Re: Charge Off Reporting After Paid

Anonymous — Thu, 27 May 2021 23:02:15 GMT

Thanks OmarGB9. I’m knew to credit monitoring so I appreciate the advice.

Re: Charge Off Reporting After Paid

Anonymous — Fri, 28 May 2021 00:08:42 GMT

@Anonymous wrote:
Hello all: So...2017 was a bad year for me. Had 4 accounts that I has having problems keeping up with. After struggling for a few months I got back on track with all but one which resulted in a charge off. Experian reported the late payments which turned into a CO and then it was paid 11/17 and they showed OK/paid and stopped reporting. However, that's when Equifax and TU started reporting it as a CO and did so for the next 2 years until 12/19. My question is how does that happen and how much is that hurting my score? Thanks in advance.

If you haven't already, I would pull all 3 CRs from annual credit report (for free - no scores) and see how they are reporting. Sometimes some credit monitoring services don't translate the credit report very good, so I would double check first straight from the most accurate source.

If it does appear that it continhed to update past when it was paid/settled, you should definitely dispute it. You can start straight with the source - the creditors - and then if no luck, go to the bureaus. I say this because sometimes these things simoly come back as verified, but if you have proof of date of payment/settlement, that should hopefully make it easier.

Good luck!

Re: Charge Off Reporting After Paid

Anonymous — Fri, 28 May 2021 03:29:31 GMT

I don't understand. Are they still reporting the late payments prior to when it was paid or are they saying you still have a balance after you paid it off?

Re: Charge Off Reporting After Paid

OmarGB9 — Fri, 28 May 2021 04:02:57 GMT

@Anonymous wrote:
I don't understand. Are they still reporting the late payments prior to when it was paid or are they saying you still have a balance after you paid it off?

I believe OP is saying that TU and EQ were reporting a CO for 2 years AFTER the account was paid off and closed.

Re: Charge Off Reporting After Paid

babygirl1256 — Fri, 28 May 2021 09:00:48 GMT

@Anonymous I had a $429.00 charge-off (CO) being reported by Bank of America to all 3 CRAs . . . When I learned of the CO, I paid the balance in full . . . after I paid it, BoA changed the status to current for one month (July) and then to CO the next month (August). I went back and forth will all 3 CRAs and finally on 4/30/2021 TransUnion (TU) deleted the adverse item and my score increased by 68 points . . . Experian (EX) deleted the charge-off and my score increased by 78 points. I contacted the Executive Team for both TU and EX to resolve the issue -and- now both credit reports are 100% clean . . . Equifax (EQ) is a different story and refuses to budge, which is disappointing. I would recommend that you file a dispute with TU and EQ for the date to be corrected after payment as it made a difference in my case. I believe it is hurting your score and needs to be corrected. Just my thoughts!!!

Re: Charge Off Reporting After Paid

GrandBay — Fri, 28 May 2021 14:51:29 GMT

@Anonymous If you still have proof of payment (email screenshot, .pdf etc) include it in your dispute. Good luck!

please, when available, update us with results

Re: Charge Off Reporting After Paid

gdale6 — Fri, 28 May 2021 16:11:16 GMT

Per CRA rules once an account is paid off and its in closed or CO status its to cease updating. There is no law that prevents them from continuing to do so, its going to be up to the CRA if they wish to follow their rules or not. Also if the account(s) are disputed in any way by you then updates are permitted when they update the account to correct the information. You could try to get the CRA to get this back to 2017 but since it ceased in 2019 I would just leave it alone.

Re: Charge Off Reporting After Paid

Anonymous — Sat, 29 May 2021 13:52:24 GMT

Thank you, I have an old student loan that I paid off 3 years ago after being delinquent and the late payments are still showing up and dropping off each month. Only 2 more years to go...Is that the same thing as his situation? If not, I'll start a separate thread so as not to hijack.

Re: Charge Off Reporting After Paid

Anonymous — Sat, 29 May 2021 14:24:48 GMT

@Anonymous wrote:
Thank you, I have an old student loan that I paid off 3 years ago after being delinquent and the late payments are still showing up and dropping off each month. Only 2 more years to go...Is that the same thing as his situation? If not, I'll start a separate thread so as not to hijack.

This is different.

The lates will drop off one by one (EQ and TU) as they each hit 7 years old. For EX, they drop entire strings of lates (consecutive lates) when the first one in each string hits 7 years old (if you have more than one set of lates, if not, just the first late in the single series of lates, then all your lates fall off). It does not matter if you paid it off, are still paying on it, or have not paid at all.

Re: Charge Off Reporting After Paid

Anonymous — Sat, 29 May 2021 16:19:47 GMT

@gdale6 wrote:
Per CRA rules once an account is paid off and its in closed or CO status its to cease updating. There is no law that prevents them from continuing to do so, its going to be up to the CRA if they wish to follow their rules or not. Also if the account(s) are disputed in any way by you then updates are permitted when they update the account to correct the information. You could try to get the CRA to get this back to 2017 but since it ceased in 2019 I would just leave it alone.

Yeah I think that’s what I’m going to do. I pulled the reports and it shows it’s going to off in 2023. I appreciate all the advise. Thanks everyone.