Paid in full...does it have to say so?

[Anonymous]

I recently PIF a charge off with Cap1. I realize they don’t have to delete it and also that it may not matter score wise, but are they required to update it to “paid after CO” or something similar? It still just says charged off account (balance zero).

[OmarGB9]

I don't think they're required to, but most lenders do typically update the comments with something suggesting it was paid after charge off and whether it was PIF or settled.

[RobertEG]

Each account is required to report the current status of the account as of the date of any updated reporting.

Additionally, once an account has been reported, it must be "promptly" updated as necessary to reflect the currrent accuracy of any reported information.  FCRA 623(a)(2).

Accordingly, when the update was made that updated the balance to show $0, the current status was required to have been reported.

If the update of balance to show $0 was due to payment of the debt, then the current status as of that reporting date was no longer one of any level of delinquency, such as 180+ late or CO.  

"Paid" would be the proper current status for an account that was paid in full.

Once an account has been paid, while the current status is no longer CO, it nevertheless will still reflect in either the payment history profile or by statement of the balance at time of CO that the account was subjected at some prior point in time to a charge-off.

Thus, a current status of Paid does not remove record of the CO.

What is the current status of the account?

[Anonymous]

Status: Collection/Charge off