15 Point drop via Score Watch

[thojawan2000]

So I have this old chargeoff for a Jared card in 2005. In February 2009 I decided to pay off the balance in. Early March I received a bump up in score which I can assume was related to cc utilization. But today I woke up to a score alert of this:

Previously reported

Balance: $0

Past Due: $0

Status:  Bad Debt; Placed for collection

Last activity: 3/1/2005

Description:  Charge off account, Charge, Amount in high credit is original charge-off amount

Newly reported

Balance: $0

Past due: $0

Status: Bad Debt; Placed for collection

Last activity: 2/1/2005

Description: Paid charge off, Account closed by credit grantor, Charge, Amount in H/C column is credit limit

What's different? How did the result in such a significant score drop. I thought in 2007 Fair Isaac made it penalty free to pay off old debts.

Message Edited by thojawan2000 on 04-11-2009 11:52 AM

[Anonymous]

You need to compare the account from a prior report to a new report, line by line. All dates.

See what changed. A date or something changed somewhere.

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thojawan2000 wrote:

. I thought in 2007 Fair Isaac made it penalty free to pay off old debts.

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 Could you expand on this? Not sure I know what you are talking about.

[Anonymous]

I can attest to your situation the same thing happened to me. I payed off the debt. They reported to Exquifax and Expreian but not Transunion. So I diputed it. My score dropped 19 points. Then a week later it went back up 19 points. So maybe it was an error on their part that they may fix within a week.

[Anonymous]

What's different? How did the result in such a significant score drop. I thought in 2007 Fair Isaac made it penalty free to pay off old debts.

There was no such thing!!

A CO  remains the same paid or unpaid. Your score might have gone down because the collection was updated!

[thojawan2000]

What I don't understand is if I paid it off in February and they reported the balance to be zero. Why are they now updating the account? My relationship with them should be over, finished. There is nothing left for them to report on.

I just compared an old report to a new one I got today and the difference is the last activity date which is one month less than the previous report and the description. That's it. 

Is there anything to dispute?

[Anonymous]

No other dates changed?

Date closed?

They can continue to report monthly until CRTP expires.

DOLA could cause the drop, it makes it appear more recent.

DOLA shouldn't change any more since it is paid there wont be any activity on the account.

[thojawan2000]

Again, I understand it was a collection account that was previously updated with a zero balance. Then for them to come back a month later and "update" the account doesn't seem fair to me. As I stated earlier, just the last activity date and description changed...but why?

[thojawan2000]

Sidewinder,

Nope, no other dates chaged. And the date of last activty was reduced by a month. So I know it's not a lot of points, I'm just trying to understand the process.

[Anonymous]

The last update would be from the Feb payment.  This is showing that they last updated in 2005. As baddies age they lose some inpact on your scores. Because of the 2009 payment, the CA updated it and FICO will pick up the 2009 date and read it as new.

Unless you use a PFD to make a payment, the CA can continue to report up to CRTP.  Approx 7 years from DOFD which is set by the OC.

[Anonymous]

This same thing happened to me Friday. I am mad as he#% about it, too. My score just took a 19 point nosedive because I paid off an old charegeoff and settled on another. Both original creditors updated and FICO claims I really MISSED a payment. I am so through with this!

All I know to do is NOT pay another dime to anyone until the CRTP ends next year on all my major baddies. 

This was so demoralizing considering I had crawled out of the 500's into the low 600's (613-618) and now I'm back weighing in at 594. 

If I ever get out of this credit mess, I will never, NEVER, have this trouble again.