Charge Off Question

[FicoTron]

Bumping in hopes of getting some more advice.

[llecs]

I just responded on your other thread, but it appears it's reporting OK based on info provided.

[FicoTron]

Really? So even though it was charged off in 2006, they can make it look like they never considered it a CO until December 2011?

[llecs]

Using your TL as an example, it was a CO in 2006 and still a CO in 2011. They can add lates during that time. The updating is usually due to the updating of the balance when interest is recalculated. 

[Student_Loans_Kill]

No it can't be reset for payment. I really wish the mods would address this topic, seems to come up often. I'm about to hire a lawyer to get the final say

[RobertEG]

There is NO question that payment or nonpayment of a debt that was under collection or charged-off has ZERO effect on its CR exclusion date.

That is why congress enacted FCRA 605(c).  Its CR exclusion date is 7 years plus 180 days from the date-certain DOFD on the OC account.  Period.

The CO itself occured when the creditor adjusted their books.  That event does not change based on when it is reported.  Reporting date is not the date it was charged-off.

It can be re-reported each month as an update, stating that it remains under that status.  That, too, does not alter the CO date.

I am not sure why all the concern about the actual date of the CO?

[E16]

I understand that the DOFD is pretty much set in stone.  It cannot be changed and baddies will indeed fall off after 7.5 years, paid or unpaid.  This is the case even when the CA has updated the account after an individual has paid off or has made payments to pay off an account.  If people are worrying about CA's restarting the clock, I think the key is to keep track of your actual DOFD and dispute any changes the CA's attempt to make.  Also, I would think, paying off an account might throw off the util (if you don't have much revolving) and AAoA.  That may have been the cause of a dropped score.  PLEASE CORRECT ME IF I'M WRONG.  

[llecs]

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@E16 wrote:

Also, I would think, paying off an account might throw off the util (if you don't have much revolving) and AAoA.  That may have been the cause of a dropped score. 

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Paying off a CC CO can result in a score decrease if the HSBC CC updated recently (prior to the payoff) and had a low util w/ a low balance and a higher reported CL, and that the HSBC CC helped overall util. Paying it off would eliminate it from CC util causing an increase in overall util. 

AAoA would not be impacted since it is still reporting.

[Anonymous]

E16 is right.  But in the real world, it seems to reage the account and then it is up to you to fight it.  In my opinion, I would have never paid that old debt without a deletion.  At this point, I would recommend to the poster that he/she try to contact the correct party at HSBC and not some rep.  I would call back the collections rep and talk to them or write to the address listed in credit report.  Ask for the deletion.  Don't know if it is too late to take back the payment, but at least ask them to correct the report to how you would like it listed.

[FicoTron]

I wish it were that easy. And this CO isn't from a CC, it is from a rapid refund loan from H&R Block from when I did my taxes in 2006 for $443. I don't know if that's makes a difference in how it impacts my report when it is looked at.