No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Good day everyone. Trying to get a very clear cut laymen terms answer for this.
A charge off debt that was charged off more than 3 years ago.
How can it consistently update each month with a 90 day late?
I thought when something is charged off, it stops reporting a new late each month. I thought it could just update each month that it is a owed debt.
Please chime in with very direct answers.
@Anonymous wrote:Good day everyone. Trying to get a very clear cut laymen terms answer for this.
A charge of debt that was charged off more than 3 years ago.
How can it consistently update each month with a 90 day late?
I thought when something is charged off, it stops reporting a new late each month. I thought it could just update each month that it is a owed debt.
Please chime in with very direct answers.
I am by no means an expert in this arena, but unless I'm mistaken, just because a debt has been charged off, that in no way means you no longer owe the creditor the money; a "Charge Off" is just an accounting term.
@Horseshoez wrote:
@Anonymous wrote:Good day everyone. Trying to get a very clear cut laymen terms answer for this.
A charge of debt that was charged off more than 3 years ago.
How can it consistently update each month with a 90 day late?
I thought when something is charged off, it stops reporting a new late each month. I thought it could just update each month that it is a owed debt.
Please chime in with very direct answers.
I am by no means an expert in this arena, but unless I'm mistaken, just because a debt has been charged off, that in no way means you no longer owe the creditor the money; a "Charge Off" is just an accounting term.
Thank you for the response. That is not what I am asking but it is helpful. The question is not about wether the debt is owed. It is clear the debt was owed or it is a mistake listed on a credit report.
Further details of the question to elaborate. Knowing the debt is owed. Knowing that it is a charge off debt. Knowing that the creditor can still collect on the debt. Knowing that the SOL has not been met.
Charge off is a very specific date of 3-22-18.
When the company charged off the debt the account was 90 days past due. The charge off is updated every single month as a 90 day late. How is that possible? Is that legal?
@Anonymous Please see this thread: How many times can a charge-off be reported?
@Anonymous wrote:@Anonymous Please see this thread: How many times can a charge-off be reported?
Thank you will check it out
Yes it is legal. The creditor has the option of updating every month after taking the charge off as either CO or the highest delinquency prior to charge off; in this case, 90 days late.
In other words, it is accurate because they have a choice whether to report CO every month or 90 days late. Either way the damage is done, and once it was CO'd, any additional lates reported on that account won't hurt more.
Taking of a charge-off has no effect on continued obligation for the debt, Each month thereafter, the debt continues to be delinquent, and thus reporting must provide the current delinquency status, as well as the prior monthly delinquency status for each month under the payment history profile.
Each month that the debt remains delinquent, its period since initial delinquency increases by 30-days. Thus, if 90-late at time of charge-off, it becomes 120, 150 180+ late in subsequent months. While the creditor in the posted scenario is not increasing the reported delinquency level, and leaving it at 90-late, if there is any inaccuracy, it is that the period of current and prior monthly delinquency level after charge-off is being under-reported. A 90-late, per the credit reporting manual, is defined as 90 to 119 days late, and not simply as having reached 90 days from billing due date.
You could dispute the accuracy of the continued reporting of consecutive 90-lates, but the accurate outcome will be an increase in reported delinquency level. Most consumers will likely choose not to dispute reporting for which correction will result in increased delinquency period levels.......
@RobertEG wrote:Taking of a charge-off has no effect on continued obligation for the debt, Each month thereafter, the debt continues to be delinquent, and thus reporting must provide the current delinquency status, as well as the prior monthly delinquency status for each month under the payment history profile.
Each month that the debt remains delinquent, its period since initial delinquency increases by 30-days. Thus, if 90-late at time of charge-off, it becomes 120, 150 180+ late in subsequent months. While the creditor in the posted scenario is not increasing the reported delinquency level, and leaving it at 90-late, if there is any inaccuracy, it is that the period of current and prior monthly delinquency level after charge-off is being under-reported. A 90-late, per the credit reporting manual, is defined as 90 to 119 days late, and not simply as having reached 90 days from billing due date.
You could dispute the accuracy of the continued reporting of consecutive 90-lates, but the accurate outcome will be an increase in reported delinquency level. Most consumers will likely choose not to dispute reporting for which correction will result in increased delinquency period levels.......
Thank you for that info
@OmarGB9 wrote:Yes it is legal. The creditor has the option of updating every month after taking the charge off as either CO or the highest delinquency prior to charge off; in this case, 90 days late.
In other words, it is accurate because they have a choice whether to report CO every month or 90 days late. Either way the damage is done, and once it was CO'd, any additional lates reported on that account won't hurt more.
Thank you for that info.
@RobertEG wrote:Taking of a charge-off has no effect on continued obligation for the debt, Each month thereafter, the debt continues to be delinquent, and thus reporting must provide the current delinquency status, as well as the prior monthly delinquency status for each month under the payment history profile.
Each month that the debt remains delinquent, its period since initial delinquency increases by 30-days. Thus, if 90-late at time of charge-off, it becomes 120, 150 180+ late in subsequent months. While the creditor in the posted scenario is not increasing the reported delinquency level, and leaving it at 90-late, if there is any inaccuracy, it is that the period of current and prior monthly delinquency level after charge-off is being under-reported. A 90-late, per the credit reporting manual, is defined as 90 to 119 days late, and not simply as having reached 90 days from billing due date.
.You could dispute the accuracy of the continued reporting of consecutive 90-lates, but the accurate outcome will be an increase in reported delinquency level. Most consumers will likely choose not to dispute reporting for which correction will result in increased delinquency period levels.......
Thank you for your insight It can sleep until they are ready to resolve it. I have tried and tried, but they will not even respond.