Reporting infrastructure

[Anonymous]

On a closed credit card account, is that something the creditor is reporting every month to the bureau or is it a non-internet-facing database entry in the bureau's server (with no transmission from the creditor)?

[thornback]

Hi & Welcome to the forums!

I'm not entirely sure I understand your Q -- but I'm going to answer as if I do... lol. 

It depends on the status of the closed account: 

If the account is closed in good standing, with no outstanding balance or negative history, then there are no further updates from the creditor unless the consumer initiates a dispute regarding all or some of the existing data as it had been reported.  The tradeline will remain as a "static" record on the consumer's report for ~10 years after the closed date. 

If the account was closed in good standing, with no outstanding balance, but with some negative history (late pays), then there are no further updates from the creditor unless the consumer opens a dispute regarding all or some of the existing data as it had been reported.  The tradeline will be updated by the bureaus as the historical late payment notations reach their exclusionary period (7.5 years), at which time, the late payments will be removed.   Once all late payment notations are removed, the tradeline will remain as a "static" record on the consumer's report for the remainder of the ~10 years after the closed date. 

If the account was closed with an outstanding balance, but is not derogatory (not a charge-off), then the creditor will continue to update the balance monthly, until it is reduced to zero.   Once the balance is zero, the tradeline will remain as a "static" record on the consumer's report for the remainder of the ~10 years after the closed date. 

If the account was closed as a derogatory account (charge-off) with an outstanding balance, the creditor will continue to update the account monthly with a new 'CO' notation until either (1) the balance is paid / settled or (2) the account is sold to a 3rd party debt collector.   Once either occurs, there are no further updates from the creditor unless the consumer opens a dispute regarding all or some of the existing data as it had been reported.   The derogatory account will remain on the consumer's credit report until it reaches it's exclusionary period. 

[Anonymous]

Does that mean a creditor does not have the ability to unreport a closed account?

Can't the creditor contact the bureau and say "don't report this account it was fraudulent"

[thornback]

For fraud, the status of the account (current or delinquent) doesn't matter. If it is proven to be fraud, either the creditor can request removal or the bureaus can remove based on documentation provided during a bureau dispute..  If you dispute directly with the creditor and their investigation finds fraud, they can request removal at any time.

Bottom line, yes, a creditor can "unreport" any tradeline they own, at their discretion. 

[RobertEG]

If the account was closed by the consumer, the FCRA requires that any credit report they issue must include the statement that the account is closed.

"FCRA 623(e)  Indication of closure of account by consumer.

If a consumer reporting agency is notified pursuant to section 623(a)(4) [§ 1681s-2] that a credit account of a consumer was voluntarily closed by the consumer, the agency shall indicate that fact in any consumer report that includes information related to the account."

However, nothing precludes the creditor from deleting the entire account, as reporting per se is voluntary.

Thus, if they do have a reported account, the fact that the consumer requested closing must be included.

However, that of course no longer applies if the creditor voluntarily deletes their entire account.

[Remedios]

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@Anonymous wrote:
Does that mean a creditor does not have the ability to unreport a closed account?

Can't the creditor contact the bureau and say "don't report this account it was fraudulent"

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They can, but it's not that easy if you're claiming fraud.

If this is not a general question, but fraud specific, you will need to file a police report.

Most creditors do not remove TLs just because we tell them it's fraudulent.  It might be a bit easier to handle if you notify them as soon as HP is incurred,  but if account was open for any period of time, it becomes more difficult. 

Otherwise, we could all just claim fraud and remove TL like a piece of cake

If you have fraudulent account, you will need to file a police report and follow procedure for identity theft.

You can go directly to lender with that, or conversely,  file dispute with CRA, so block can be placed.

You'll want to do this via certified mail with all supporting evidence attached. 

[Anonymous]

Sometimes creditors like Synch may update a closed account for no reason.

[babbles]

if I may ask  for an opinion,   I opened a  credit card  line but  decided I didn't want it and closed it down before it was set  to report about  the 20th of this month as  a new CL,   will  the  closed  account  still  report  to  CRA's??   zero  balance also as of 5/12

[thornback]

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@babbles wrote:

if I may ask  for an opinion,   I opened a  credit card  line but  decided I didn't want it and closed it down before it was set  to report about  the 20th of this month as  a new CL,   will  the  closed  account  still  report  to  CRA's??   zero  balance also as of 5/12

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Likely, Yes.    New accounts typically report even if closed very soon after opening.    In rare cases, it won't report at all --  I lucked out when I closed an account with Credit One a couple of days after opening (very early in my rebuild ) and they never reported it to the bureaus -- but that is a rare occurance.

[Anonymous]

+1 @thornback