After filing an online dispute with Experian, all my charge offs say new negative payment activity.

[Anonymous]

A new charge off appeared on my Experian report yesterday, it stated it was opened 6/2019 and reported  8/2019.

  I think it is from a medical bill about 3 years ago, but I never got any bills or collection letters, maybe my insurance didn't pay the full amount, I'm not sure exactly what it is from, so I disputed it because It's aged wrong and I'm not really sure what it is.  It dropped my FICO score around 20 points.

Today I checked my Experian, It dropped another 20 points and said I had  8 new negative payment activities from my charge offs from 3 years ago, they all said FP failure to pay every month for the last three years.

I'm assuming my dispute caused this, my Transunion report showed the new collection report but it didn't drop my score very much.

Since ruining my credit three years ago because of a job loss, I got 4 new credit cards and made 100% ontime payments and increased my FICO from around 450-630.

Any advise on this situation would be greatly appreciated.

[The_Rooster]

I've seen this happen as well.

It's a really stupid result of disputing. FICO should not penalize you for disputing a tradeline. 

[gdale6]

Yes, its a result of your dispute, Fico calculates score from the status date not the actual date that the problem happened. Welcome to the board

[RobertEG]

When a creditor reports a charge-off, they are not reporting the date that it was taken (i.e., it is not being reported as a "new charge-off").

They are only reporting that the account was, at some prior point in time, charged-off.  If CO is reported as the current status, that states that the account was charged-off at some unspecified prior time, and remains delinquent. 

Once a creditor reports that they took a charge-off, they are required to additionally and separately report the date of first delinquency in the chain of delinquency that led up to the CO.  See FCRA 623(A)(5).

They do not report, and the CRAs have no established code for storing, the actual date that they took that accounting measure.

It is the period that has passed since DOFD that determines the age of the delinquency.

Updated reporting that the current status is CO thus states that the debt remains delinquent, which then extends the period since DOFD, which is what produces the negative scoring impact.

Each and every month that the creditor continues to report a current status of CO thus updates/extends the period of overall delinquency, and thus negatively impacts scoring.  Update after a dispute can have the same effect.

Once you pay the debt, the current status is then reported as a non-delinquency status, such as paid or settled for less, which no longer extends the period of delinquency from DOFD.  The delinquency then begins to age in scoring impact.

[Anonymous]

Thanks,

All 8 of my charge offs were not updated for a few years, they all said data unavailable, now they are all reported as failed to pay for the last few years,  and now I have 8 new negative payments reported which dropped my score. 

I did some research and it seems like when you file a dispute it drops your score in some cases, some say it's punishment so people don't file disputes, i'm not sure if It's true or not.  I won't be filing any more disputes, I really just wanted the new collection reported to be properly aged so it comes off my report in a few years instead of 7 years from now.  If the dispute doesn't resolve this, I'll contact the collection agency for the paperwork.