Chase CC IIB listed as charge off-Should I dispute?

[cyb29]

Hi Everyone, I need a little advice here.

I was reviewing my recent credit reports and a Chase credit card that was included in CH7 BK is reporting as follows:

Equifax - Charge off, balance has no amount, payment history scrubbed except for the late payments leading up to filing. Stopped reporting month of filing. Last update Apr 14 (I filed in Mar 14) Comments: Charged off Account

Transunion - Terminated 4/15/2014, Balance 0, Last update 4/15/2014, Pay Status: Charged off, Date closed 5/22/13. Maximum deficiency 120 days, 7 years of payment history ending in March 2014 Remarks: Closed by Credit Grantor; >Unpaid Balance Charged Off<

Experian - nothing reported

Questions:

1. Should I dispute these to show IIB and $0 balance?
2. Is there an advantage to doing so?
3. If I dispute, would Experian get notified and update my file?
4. If I leave as a charge off will it fall off of my credit report earlier? It is currently scheduled for 7 years post filing date.

I appreciate any reponses. I am just not sure what to do, if anything. Thank you for your help!

[RobertEG]

An FTC staff opinion letter, a District Court decision, and a federal BK court decison have addressed the issue of credit reporting of a charge-off on a debt that is discharged in BK.

The position of both the FTC and the court was that if the charge-off occured prior to the BK, the debt was still delinquent and collectible at the time, and the charge-off is part of the payment history of the debt, and can remain post-BK.

The reported charge-off as well as other reported monthly delinquencies can reamain in the consumer's credit report until they reach their normal exclusion periods under FCRA 605(a).  The exclusion period for a charge-off is no later than 7 years plus 180 days from the DOFD, as defined under FCRA 605(c).

However, if the CO was not taken until after the BK discharge, then it the charge-off is not reportable to a CRA, even if the creditor is required under federal regs to take the charge-off.

Thus, the relevant dates of both the charge-off and the BK are necessary to evaluate the accuracy of the reporting of the charge-off. 

See the FTC staff opinion letter, Lovern/Brinckerhoff, April 24, 1998;  Goodfellow v Discover Financial Services, (D.C, MD Fl); and In re Fox (3:05-bk-12267, Bankr Ct, M.D., Fl).

[cyb29]

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@RobertEG wrote:

An FTC staff opinion letter, a District Court decision, and a federal BK court decison have addressed the issue of credit reporting of a charge-off on a debt that is discharged in BK.

The position of both the FTC and the court was that if the charge-off occured prior to the BK, the debt was still delinquent and collectible at the time, and the charge-off is part of the payment history of the debt, and can remain post-BK.

The reported charge-off as well as other reported monthly delinquencies can reamain in the consumer's credit report until they reach their normal exclusion periods under FCRA 605(a).  The exclusion period for a charge-off is no later than 7 years plus 180 days from the DOFD, as defined under FCRA 605(c).

However, if the CO was not taken until after the BK discharge, then it the charge-off is not reportable to a CRA, even if the creditor is required under federal regs to take the charge-off.

Thus, the relevant dates of both the charge-off and the BK are necessary to evaluate the accuracy of the reporting of the charge-off. 

See the FTC staff opinion letter, Lovern/Brinckerhoff, April 24, 1998;  Goodfellow v Discover Financial Services, (D.C, MD Fl); and In re Fox (3:05-bk-12267, Bankr Ct, M.D., Fl).

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@Thank you for your reply @RobertEG. I've been reading the boards and understand the timing for reporting a CO vs an IIB. What I was wondering is whether there is any benefit for me to dispute the CO. In other words, does it matter to my FICO score as well as the final remove date whether it is listed as a CO or an IIB. Also, how would any future credit grantor view this? Same thing or one worse than the other? I'm not sure its worth it to dispute the CO if there is no real benefit to doing so (other than to possibly correct the record). 

At this point I don't want to make a fuss where one isn't necessary. Looking for opinions on the above. Thanks!

[RobertEG]

The point is that it may not be a "one or the other."

Was  the charge-off taken before or after the BK?

They could both still appear.

[cyb29]

The charge off only appears once on the credit reports. It does not show as IIB.

I'm not sure when the charge off was taken. I have no recollection of any notices from Chase about this but it was not a great time in my life so its possible I just didn't pay attention. How do I find out?  I went back through my files, and while I'm not sure the files are complete, the last invoice I have from them is dated 9/2013. Nothing after that. BK was filed 3/31/2014.

I can only tell you definitively what is on the credit reports.

Equifax shows reporting of past due payments through month of filing BK. Date reported to Equifax is 4/15/2014. Delinquency first reported 12/01/2013.

Transunion shows past due payments reported through month of filing BK. Responsibility shows Relationship Terminated 4/15/2014. Date Closed 5/22/2013 Maximum Delinquency of 120 days in 9/2013 for $871 and in 03/2014.

Experian has no record.

I'm not sure what to make of the above but it appears from reporting dates that they held the debt open until the BK was filed in 03/2014.