I settled two BofA CO's and they applied the settled amount to my outstanding balance about 30 days ago. How long do they have to report the accounts as settled and show a "zero" balance? I assumed it would be done within 30 days of payment but I just checked and they are still showing a balance and no comments as "settled".
They would report the payment typically at their normal reporting time for your account (your statement date) and then the next cycle they normally update it to a 0 bal with settle comments. It can take up to 2 cycles to complete it
The standard for updating reporting to a CRA is FCRA 623(a)(2), which does not set a fixed period, such as 30 days.
Rather, it provides flexibility in that it only states that reporting must be "promptly" updated as necessary to maintain its current accuracy.
Thus, a reasonableness standard applies. Normal interpretation is that they include update in their next regular reporting cycle after the payment has internally cleared their processing. Internal clearance and processing can take a week or two, and then forwarding to their credit reporting division could have up to an additional one month delay before their next regular reporting date.