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New CO reported on paid account

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Member

New CO reported on paid account

My Credit One card was closed on 12/16. I thought it was paid off. Had no further contact until 3/18 when I got a collection letter from One Main, whom they sold the account to. Checked my credit report from 2017 and it showed 4 different charge off dates, correlating with 4 auto-drafted payments taken directly from my paycheck (small $75 payments I didn’t notice). It had a $300, but sold to collection for $990. I was thoroughly baffled, but buying a house and eager to resolve any debt. Paid it off on 8/18 and they removed the collection from my report. All was well until a year later when Credit One, the original debtor, reported a new delinquencies on 7/19 as “failure to pay” (despite showing a $0 balance). I disputed the charge and it was verified as accurate, with a 2nd new delinquency added that month. I contacted Credit One and explained the debt was paid, but was told to take it up with credit agencies- who had already validated the inaccurate info. So much wrong here, I don’t know where to start.
10 REPLIES 10
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Regular Contributor

Re: New CO reported on paid account

I’m sorry to hear about this. Have you tried to re-dispute it and explain that you were told to dispute it? I would start getting names and escalating with CO.
Message 2 of 11
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Moderator

Re: New CO reported on paid account

Hi and welcome

You dont have four CO dates. What you're seeing there is an update to an existing CO with each payment. So, in a nutshell, CO is status, and they updated every time a change was made (payment in your case)

You need to dispute this in writing, via certified mail. It's not as convenient as online dispute, but it works better. Send copies of everything you have as a proof of your payments.
If CRAs fail to do proper investigation and correct inaccuracies, you will need to file a complain with CFPB. Again, include all the pertinent evidence.
You can file complaint online, two of them actually
One against Credit One for inaccurate reporting and the other one against CRA for failing to do reasonable investigation.

It's important you do it in that order.

Good luck and I hope you get it resolved quickly!
Message 3 of 11
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Member

Re: New CO reported on paid account

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?
Message 4 of 11
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Moderator

Re: New CO reported on paid account


@adamhight wrote:
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.  

 

 

Message 5 of 11
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Member

Re: New CO reported on paid account

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. 

Message 6 of 11
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Member

Re: New CO reported on paid account

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.

Message 7 of 11
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Legendary Contributor

Re: New CO reported on paid account

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.

Message 8 of 11
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Member

Re: New CO reported on paid account

That’s exactly what happened- is showed as CO on 4/18, “currently pays as agreed” 5/18-5/19, then CO 6/19-8/19 and updated as “Unpaid balance reported as loss by credit granger”. The account was closed 12/16 and paid off.
Message 9 of 11
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New Member

Re: New CO reported on paid account

Thanks for the post! Credit One is horrible. (Well....Them and Conns homeplus) I had an account, made 1 charge For 380.00, that 389 wound up costing me thousands as well as TWO derogs on my report. I fell behind after Hurricane Harvey (my job closed for 3 months, yes I side hustled Jobs to the best of my ability) Anyway, they charged it off when I fell behind after 2 years of payments ranging from 25-50 bucks each time. The balance obviously never reduced and when it was charged off to LVN funding they also reported to the CRA’s. So I have 2 derogs for one Debt. Fast forward I paid off the debt with LVN funding (settlement) YET BOTH LVN and Credit One and still showing as delinquent....pretty crappy that one 389.00 charge from 3 years ago is standing between me and the ability to finance a postage stamp. I range between 610-680 Fico scores....all accounts have been current for the past year. I can’t get an approval to save my life, it’s almost laughable. Anyway, I get now that charge offs stay negative and on the CR for the full 7, paid off or not.....I’ve done everything I can to improve my report (I raised my score 100 points in a year via diligence) yet all the auto-approval systems see are those derogs, I can’t get past a gate keeper, I’m not sure how to begin my own thread but any advice would help. I’m seriously considering hiring “700 plus credit” and give the. 1000 to see if that can get any of it off, they claim they have “special codes” they use when disputing that gives them an edge in the favor of removal. Sounds like bologna to me, but I have tried everything else....

Tips on how to start my own thread or other Credit one horror stories that resulted in a positive outcome would be appreciated....
Message 10 of 11
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