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Closed account

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nelslt
Established Member

Closed account

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.  

5 REPLIES 5
rostrow416
Established Contributor

Re: Closed account

Was this account ever brought current?  If it was, rather than chargedoff, it would remain for 10 years 

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Message 2 of 6
nelslt
Established Member

Re: Closed account

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.  

Message 3 of 6
VALoanMaster
Valued Contributor

Re: Closed account


@nelslt wrote:

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?

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Message 4 of 6
nelslt
Established Member

Re: Closed account

Yes. The same day I got the alert on my credit report I immediately went to the bank and paid it off. 

Message 5 of 6
VALoanMaster
Valued Contributor

Re: Closed account


@nelslt wrote:

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.

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VA, FHA, USDA. Jumbo, Conventional.
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Message 6 of 6
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