Depository accounts on CBs; is that FCRA allowed?

[Aspireto850]

Hi myFico'ers,

According to the FCRA are financial institutions allowed to put depository (checking, savings) account information on a credit bureau report? I mean the name does imply 'credit' only...........

Closed a checking account right before the start of covid not realizing I had a stop payment fee that was assessed the day afterward. Needless to say but distractions with Covid caused me to not pay attention to the notice I received from the bank/CU so they charged off $33. It has since been paid but they placed in on my CR as a charged off account. I'm so freaking po'd. I've tried goodwill but they won't budge. Are they allowed to do that? Are there any suggestions on how I can get this removed? Because of this account, I've gotten a couple of declinations because of 'recent derogatory'...............

Thanks for the help.  

[RobertEG]

Yes.

A Consumer Report, as defined under FCRA 601(d) and 604(a), extends to information other than credit, including insurance, employment, or broadly for any business transaction for which there is a legitimate business reason for review of the consumer's report in evaluation of the transaction.

Banking accounts have traditionally been included under such a broad business transaction umbrella, as are utility accounts and rental agreements.

[Anonymous]

Have you attempted to pay the $33?  Maybe try the angle of asking if you pay it will they remove the negative information?

[Aspireto850]

@Anonymous 

I paid it about 2 months after closing and that was when I sent request for goodwill. They're playing hardball. That was a 25 pt hit to score.

@RobertEG 

Thanks for the information. While I had a feeling you would say that I sure was hoping you knew of a loophole. Guess I'll start start a broad goodwill campaign.

Do either of you know which of the FICO score models exclude balances less than $100; if that is such a thing?

Thanks, stay safe.

[Mr_Mojo_Risin]

From what I remember, FICO 8 will ignore collections under $100 and FICO 9 will ignore paid collections. 

Be safe out there!

[Aspireto850]

@Mr_Mojo_Risin , thanks.

The account is listed as a Charge-off............ with it being less than $100 and a CO is it treated like a collection?

Stay safe.

[Anonymous]

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@Aspireto850 wrote:

@Mr_Mojo_Risin , thanks.

The account is listed as a Charge-off............ with it being less than $100 and a CO is it treated like a collection?

Stay safe.

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Unfortunately, no. A CA is entirely separate from a CO and a CO is not treated as a CA, no matter the balance. The "nuisance" CA only applies to F8 and F9, I believe.

Both me and my SO have an OD from a joint bank account amd the ended up reporting it as a CA and not a CO. I am semi-grateful, even though CAs are worse than COs, because the CA does PFD.

Have you thought about seeing if they would delete the CO with payment?

[Aspireto850]

Thanks @Anonymous  The account was paid a month after they CO'd it for $50. Tried a small GW campaign but no luck that's why I was hoping to use the FCRA. 🤷🏻‍♀️

[gdale6]

You closed the account, they should have taken care of all fees that very day, they could have seen that stop payment fee was going to be assessed. I would file a BBB complaint on them for shoddy business practices.

[Aspireto850]

@gdale6 

Excellent point; hadn't thought of that. Good suggestion, thanks.