Credit Union Checking Account Charge-Off

[Anonymous]

So, I had an old checking account back in the day with a local credit union that went south. I ended up owing them ~$800 and they put it on my report as a charged off loan. I have paid it in full so it will no longer report new activity and when I went to ask for a GW removal, they gave me the same ol' "we must report accurate info."

But my question is can they really report this in general? This was a checking account, not any type of loan or credit card. I never signed any loan application, unless they snuck that in when signing up for the account. Do I have a good basis to dispute it? 

[Remedios]

Hi and welcome to the forums 

Yes they can. It's not a common practice, but there is nothing preventing them from doing it. 

You defaulted, and they covered the charges you made, so that's your loan aspect. 

Typically,  they will report negative info about DDA to Chexsystem, but some will report to CRAs as well, because it gets the attention faster. 

[Anonymous]

So, my only course of action that could help would be GW'ing them to death? 

[Remedios]

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@Anonymous wrote:

So, my only course of action that could help would be GW'ing them to death? 

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Yes, because dispute would most likely have disastrous results because it would come back as verified, dropping your score again when negative account updates. 

[Anonymous]

Thanks for the info. Though while I'm at it I have another question. does DoFD for the 7 year drop period go by the literal first derog or by when it went to charge-off/collections? Because I have one that has a very first derog of 30 days late in late 2014, but it went current after that, then went bad in 2016 and charged off. And I believe when I looked at it on EXP it showed it was to be removed in 2023... is this correct? 

[RobertEG]

As set forth in FCRA 603(d), information that can be reported includes "communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living."

It is not limited only to the reporting of credit accounts.