Auto loan reporting as charge off that is actually PIF

[Anonymous]

Hello, 

All of my CBRs show a charge off on an auto loan that I think I should dispute.  It was a total loss and it was paid in full by my insurance agency 2 years ago.  I've called the OC and they show it paid in full.  Should I dispute it with the CRA or is it something the OC should get changed?  Also, while we were waiting for the insurance company to make-up its mind what they were going to do, we had to skip payments in order to get a new car.  It was a total of 120 days past due.  When I get this changed does anyone have any idea how many points it might raise my scores if any, since the late payments will still show?

Thanks.

[Anonymous]

A 120 day late is a major derog on your credit report and will be treated as such for 7 years. That will place you in a negative bucket. It will still strongly impact your score at 2 years, even if you get the charge off removed. I would write the company a goodwill letter after you ask for debt validation. When the company writes to say there is no debt then send that to the CRAs to get it removed. If the late stays on you will still be heavily hurt, but the effect will lessen over time. It will prevent your score from hitting super high strata though.