After going over old paperwork just now, I found a bill from Credit One sent 2/25 stating the full balance must be paid by 3/21 to avoid charge off. The collection letter states it was charged off 2/26. My credit report on 3/7 shows it was already reflecting as charged off. Are they allowed to charge off an account before payment due date?
Yes, account can be charged off at any time. There is no certain period for when that happens.
CO date is irrelevant. Removal is based on DOFD, so why would you take another scoring hit when negative account updates over a date that means nothing.
CO is not a delinquency per se, it's your worst payment status that determines level of delinquency.
CO is simply accounting measure. Debt is still there, but may not be collect directly . Lenders have to do it in order to avoid "inflating" accounts receivable.
By that time, you would have been 5 months behind
Once account is in CO, collection process via other means starts, such as internal collection agencies, litigation, sales of debt to outside collection agencies.
If you're looking to dispute CO date in hopes of tradeline being removed, dont. All it will do is correct inaccuracies present on your CR. Thread carefully with dispute process because when it goes wrong, it really goes wrong.
Dispute the actual, relevant inaccurate info, which is reporting failure to pay after account was paid off.
It looks like Experian just deleted the tradeline completely. I'm not sure what happened, since I haven't contacted them since July when they update the account as a new CO, but it's gone! Still on EC and TU though. I'm not going to touch it until I can figure out more.
Also, the CO date is important to me because it showed on my credit report (and score) as a new delequency and dropped my score pretty significantly. Especially since it had already been paid. But as I update above, EX removed and I'm hoping EC & TU do the same.
The CRA credit reporting manual specifically includes CO as a legit and reportable current delinquency status, or as a prior monthly delinquency status within your payment history profile.
It is simply an alternate and acceptable status that states that at some prior point in time (date they took the CO is not reported and is not stored by the CRA), the creditor took that accounting measure, and the debt remains (or was) delinquent.
The period of the delinquency is not explicitly stated in the stated CO status (such as 150-days late), but is calculated for scoring purposes by referencing the separately reported DOFD.
Thus, CO can appear as simply a statement that they creditor took that accounting measure, such as reporting of the amount of the original debt at time of charge-off, and/or also as the current delinquency status, or the delinquency status in one or more prior months. That is not the reporting of their having taken multiple charge-offs.
Use of CO as the reported delinquency status is optional on the part of the creditor.
They could choose to report in the normal fashion of days delinquent, such as 150 days late, or alternately simply as CO.
You dont dispute the date of a charge-off, as it is not reported to the CRAs and is not an item of information in your credit file.
You also dont dispute the accuracy of their reporting of CO as current or prior monthly status if the account was delinquent for that month and they, at some unspecified but prior month, had taken a charge-off. It is their reporting option to use CO as status.
However, if CO has been reported either as the current status or a prior status under payment history profile for a given month that is AFTER the debt was paid, that is a disputable inaccuracy.