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[Anonymous]

AMEX recently closed my account and stated in writing that they would report it as "Satisfactory/Account closed by credit grantor."  What does this really mean?  I looked on my credit report and it is in the derogatory section.  I was put on a payment plan but am considering not paying as it has already hit my account.  Does it make a difference if I pay on it or not with respect with my FICO score?

[AndySoCal]

Closed by grantor is considered to be derogatory the usual reason for this happening is a bad payment history.  If that is not the case  and it is an account that you have closed for whatever reason you can dispute it or call the creditor and have them change how it is being reported. I had the same comment on my credit report and had a letter from the creditor stating I had closed it.  I sumitted a copy the letter as proof and it was updated correctly. Hope this helps.

[Anonymous]

Yes, AMEX closed it due to my payment history.  However, they never once reported it prior to it being sent to collections.  I am wondering if I should even bother trying to pay it.

[RobertEG]

Could you clarify the status, please?  "Satisfactory" with unpaid debt?

Apparently the account was closed by them with an unpaid balance, with an agreement from you to pay the remaining balance on an installment plan.

I dont see account closing as affecting agreement with them regarding payment of the debt.  I would guess that they are still reporting the account status, even though it is now closed, as "saitisfactory" based on your payment agreement with them.  If you break it, I would guess that they would update the closed account to a status of unpaid debt remaining.  That would also probably kill any chance of a later GW deletion from them if and when full payment of the unpaid debt was fulfilled.

Has a CA already been posted to your CR?

With respect to your FICO score, first of all, debt never goes away.  Thus, neither does credit reporting until the drop off dates specified in FCRA 605(a) have expired.

Maximum threat does not end with the posting of a CA.  Legal action could follow if the debt remains unpaid.

If you delay payment, I would strongly suggest that you first know when the SOL tolls under your state statute.  If they bring legal action, and prevail, that will add a judgment to your CR, with serious impact on your credit score.

[Anonymous]

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@AndySoCal wrote:

Closed by grantor is considered to be derogatory the usual reason for this happening is a bad payment history.  If that is not the case  and it is an account that you have closed for whatever reason you can dispute it or call the creditor and have them change how it is being reported. I had the same comment on my credit report and had a letter from the creditor stating I had closed it.  I sumitted a copy the letter as proof and it was updated correctly. Hope this helps.

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Not exactly.

Although there can be instances where a creditor closes an account that is  or has been delinquent, the fact is that many accounts are closed because of where you do / do not shop, financial reviews (specifically AmEx) and other non-culpable debtor actions.  An account otherwise in good shape closed by a credit grantor is not considered derogatory.

[MarineVietVet]

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@Anonymous wrote:

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Not exactly.

Although there can be instances where a creditor closes an account that is  or has been delinquent, the fact is that many accounts are closed because of where you do / do not shop, financial reviews (specifically AmEx) and other non-culpable debtor actions.  An account otherwise in good shape closed by a credit grantor is not considered derogatory.

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I agree with O6 on this. Perhaps before the credit mayhem of the last few years it was looked at negatively to have an account closed by credit grantor but I don't believe that matters any more.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Anonymous]

The letter that I received from American Express stated they would report it as "Satisfactory/account closed by credit grantor."  On EQ it shows as a negative closed account.  On EX it shows a collection.  However, it is not the collection agency that is reporting it.  On TRansunion it shows as a negative closed account.  I am working on paying on the balance but since it has already been reported I may stop paying it.  I also don't understand how they stated they would report it Satisfactory yet it is showing up negative.

[Anonymous]

What else is interesting is that I do not have 30, 60 or 90 day markings from AMEX.  They never once reported me even as I got to 120 days.  I was only reported after they closed the account.  All of the reporting is being done by AMEX and not the CA Collectcorp.

[Anonymous]

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@Anonymous wrote:

The letter that I received from American Express stated they would report it as "Satisfactory/account closed by credit grantor."  On EQ it shows as a negative closed account.  On EX it shows a collection.  However, it is not the collection agency that is reporting it.  On TRansunion it shows as a negative closed account.  I am working on paying on the balance but since it has already been reported I may stop paying it.  I also don't understand how they stated they would report it Satisfactory yet it is showing up negative.

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What exactly does their letter to you state?? ... if you have something in writing saying that they would report satisfactory upon paying off that is distinguishably from amex (letterhead and all)  I would pay it off.  It all depends on thier letter and if the lingo is legally murky I would just ask for  a more definative statement.  Because if it says charge off/collection than that's what's kicking your butt here.

I don't know if closed by grantor is a negative comment ( deserving of being placed in the derogatory category)and you can request the reason being for why some reports have it listed as negative.  To be honest being in the wrong area code nowadays can have your card closed by credit grantors seriously... now is that a knock against you?

I think you should seek to repay the debt as long as you have wording and proof that you can have faith in without second guessing.  Something along the lines of your account closure has nothing to do with past payment history or at very least an agreement to post satisfactory like you said before.

[Anonymous]

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@Anonymous wrote:

What else is interesting is that I do not have 30, 60 or 90 day markings from AMEX.  They never once reported me even as I got to 120 days.  I was only reported after they closed the account.  All of the reporting is being done by AMEX and not the CA Collectcorp.

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Ok upon reading this you don't have a legal argument just hopefully you can strike an agreement with them.  Just keep in mind you have no grounds for disputing their reporting but you still can strike a deal ... you do owe them the money.

They don't have to report the derogs as they happened they can report them whenever they want before 6months or the charge off.  I'll leave that to O6 because i really am not sure when they have to report lates before a charge off ( I would think they have to but i am not sure if they have to). As long what they report is accurate and they have records to show such for instance that the 30 , and 60 had indeed occured then they don't have to report 30 and 60 day lates, 30 and 60 days late respectively. In fact they could have been doing you a favor.  Now i heard of creditors not reporting just to get you to pay than report after the fact ... so infact my last statement could be in question.  But you have no case I would strike some sort of agreement.