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Is this the Correct reporting??

firemartinez1980
Regular Contributor

Is this the Correct reporting??

I have 3 old credit cards that I paid off in Full after they unfortunately were Charged-Off. All of these were from 2014-2015

 

On my credit report this is an Example of how they report:  "Paid, Closed. $663 written off"

 

However, the amount shown as "written off" is actually the amount's I paid in full that was owed?

 

So is this correct or what can I do about them??

Message 1 of 4
3 REPLIES 3
FireMedic1
Super Contributor

Re: Is this the Correct reporting??

I believe that the creditors can keep the amount that was charged off initially. But the paid and closed is correct. You paid it. But the "wriitten off" part smells fishy. They may have written it off back when, but they got paid. I'll ping @RobertEG and see what his take is on this.

 

There's probably some legal limbo by leaving "Written off" on there. Either way its PAID and that looks good. But the charge off will still have the same effect on your score. But lesson over time. Least you paid it and it looks a whole lot better than owed. Congrats!






My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's.
Message 2 of 4
RobertEG
Legendary Contributor

Re: Is this the Correct reporting??

The amount charged to profit and loss ("written off") is a fixed amount at time that they took the accounting measure.

A creditor can report that sticky amount as part of reporting of the charge-off, and it does not change.

 

Taking of a charge-off does not write off the debt as far as the consumer is concerned, and the consumer continues to owe the entire amount, which can continue to accrue interest or other fees.  Thus, while the amount they charged-off is a fixed balance, it can subsequently change.

 

The CRA reporting manual permits a creditor, when a CO is paid, to include the statement "Paid, was a charge-off" as the new account status.

Normally, that does not specify the orignal amount of the CO.

In this case, the credit report also specifies that it was a charge-off and the amount.  If that is incuded, the stated amount should either state the amount they charged-off, or else simply state that it is now paid, and was a CO.

 

I dont think that their reporting has any significance in scoring or otherwise, but yes, technically it could be disputed as inaccurately stating the amount that they charged-off as the amount you subsequently paid, if they are factually different.

Personally, I would not pursue a dispute, but you probably have basis if you so desire.......

Message 3 of 4
SouthJamaica
Super Contributor

Re: Is this the Correct reporting??


@firemartinez1980 wrote:

I have 3 old credit cards that I paid off in Full after they unfortunately were Charged-Off. All of these were from 2014-2015

 

On my credit report this is an Example of how they report:  "Paid, Closed. $663 written off"

 

However, the amount shown as "written off" is actually the amount's I paid in full that was owed?

 

So is this correct or what can I do about them??


I don't know if they have the right to say that, or not, but I would dispute it if I were you.


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 4 of 4
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