So I am about 2 months from the completion of a new construction home. I had a line of credit that was over the limit from BBVA that showed closed in 5/2013. PNC bank merged with BBVA, now they are reporting the account. I know they aren't supposed to be able to report to the credit bureau after 7 years. Can they report since they merged? The balance has since been paid off. Who would I need to contact to dispute. My score has dropped over 40 points.
Was this account ever brought current? If it was, rather than chargedoff, it would remain for 10 years
I just paid it off on Friday. I had forgot about it since it was closed and I was no longer receiving any bank statements.
So they reported the account before you paid it off?
Yes. The same day I got the alert on my credit report I immediately went to the bank and paid it off.
My best guess is they did a soft pull, saw that you had applied for a mortgage and started reporting the account again hoping you would pay it off.
So now the question is, did they illegally re-age the debt.
Under the FCRA, the creditor can report the debt for basically 7 years from when you went delinquent BUT that clock can be "reset" if you make a payment, acknowledge or inquire about the debt.
If you think the creditor illegally re-aged your debt, dispute the account with the credit bureaus and file a complaint with the CFPB.