B of A - Changed Status of Charge-Off/Settlement Account

[EW800]

Hi Friends,  

I received a MyFICO alert notification that B of A made a change to my account status on my Equifax report, which caught my attention, as this was a revolving account that was a charge-off/settlement that I did with them about 6-1/2 years ago.  The account has already fallen off of TU, should fall off of Exp next month and should fall off of EQ in September.  They changed the Status from "Pays 91-120 Days" to "Pays as Agreed".  The comment of "Account Paid for Less Than Full Balance" still remains in the Comment section.  

I see no indication yet that this has had any impact on my Equifax score at all, however I assume that "Pays as Agreed" is certainly a better status than "Pays 91-120 Days".  Can anyone speculate why the change just a couple of months before it will be falling off?  Should it have been "Paid as Agreed" all along following the settlement and they just now caught this as an error?  

Here is another element of this that I am wondering about.  If they (B of A) submitted the same update to TU, which again is no longer on my report thanks to an EE, could this update in status cause the account to go right back on my TU report, or is it that once an account is removed, it is removed for good under EE?  

Thanks!  

[RobertEG]

They have updated the current status to reflect its correct status of having been paid.

Continued showing of 90-late is a current status of continued delinquency, and is inaccurate.

The creditor was required under FCRA 623(a)(2) to promptly correct as soon as they are aware of any inaccuracy in reporting.

I cannot speculate as to why they did not notice the inaccuracy sooner, but it is a substantive correction.

CRA policy is that, when they make the required exclusion of a delinquency or charge-off, if the current status is one of a non-delinquency, such as Paid or Pays as Agreed, then they will exclude the reported delinquencies, but not the entire account.

However, if the current status remains one of delinquency, such as CO or xx-late, then they must exclude the entire account, as they are prohibitied under FCRA 605(a)(5) from continuing to include "any other item of information" in your report after 7 years.

A current status that remains one of delinquency is an "other item of information" that is prohibited from continued reporting by the CRA, and a current status cannot be updated to a non-delinquency status if the debt remains unpaid.  Thus, the CRA removes the entire account when it remains delinquent at time of exclusion of the prior payment history derogs.

Techically, if the current status is updated prior to exclusion of the CO or other delinquencies, then they would not delete the entire account.

If, however, they process the update of the current status to a non-delinquency status before they process the exclusion of derogs, then the account would not require removal, and if absent of other derogs, remain absent any derogs.

The creditor is NOT involved in exclusion other than to report their account information.

The actual exclusion is tracked by and done by the CRA.  

It is highly unlikely that the CRA exclusion software used by the CRA would permit any reinsertion after they exclude by grant of an early exclusion.  It is legally possible to reinsert up to the expiration of the full exclusion period, but it is more likely that exclusion removes the account from any subsequent review by their exclusion software.