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Charge off account showing different balance on credit reports.

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Established Member

Charge off account showing different balance on credit reports.

Im sure this may have been answered before on here but I could not find the topic.  I have an old charged off account from 2012 from an auto loan I had back when I was in the military.  The issue ive found is they are reporting a different balance accross all three credit bureaus.  exp shows 12k eq shows 10k and TU shows 15k.  I have disputed the account and asked to verify the account and to verify the balance.  All three dispute cames back saying the account was valid and the balance was correct.  Can anyone here make any sense of that?  Any help would be appreciated.  Also on another subject I disputed a collection account and it was removed from EX but remained on EQ and TU saying the account was verified as accurate.  Whats the deal with that?  

Message 1 of 12
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Legendary Contributor

Re: Charge off account showing different balance on credit reports.

As for the charge-off, the current balance should be the same regardless of which CRA they are reporting to, so disputes with each CRA that produce differing verifications of the same account (assuming the disputes were invesigated at the same time) would not be a consistent investigation of each.

Stated differently, since it is the same account, and thus the same item of information, the results would necessarily be consistent.

 

What to do?

You have three choices.  First, you can file a new dispute, with the new information supporting the dispute being the inconsistent veriifcations with each of the CRAs.  Second, you can file a formal complaint with the CFPB for admin review of their improper verifcations.

Third, since you have already disputed, you can now bring your own private civil action under the provisions of FCRA 623(c), and get the matter reviewed by the courts, with possible recoup of civil damages.

 

However, none of those will mandate deletion of the disputed CO or of the account, as a dispute and complaint or civil action only apply to correction of the adverse item that is subject of the dispute.  Unless you are getting the current balance as a prelude to paying the debt, it may be more prudent to simply do nothing.

 

As for the removal of the collection with only one CRA, that is a different issue.

It is common, in response to a dispute, for the debt collector to choose to delete with one or two CRAs and yet verify with the third.

That is proper, as reporting is voluntary, and the furnisher can elect to verify with only one CRA, and delete with the third.

Deletion with all CRAs would only become a required outcome if the result of one of the disputes clearly states that the debt collector found their collection to be improper, such as the debt was found to not be legit, or they lacked any proper collection authority.

Unless you received a Notice of Results from the CRA that stated the debt collector made such a finding in their investigation, then deletion with one or two CRAs is not basis for requring deletion with all.

Message 2 of 12
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Established Member

Re: Charge off account showing different balance on credit reports.

thank you for your response. the only reason I disputed the charge off is because I'm trying to get my report cleaned up because my wife and I will be trying to buy a house in the next couple of months and I figured with it being so old they might just not even bother trying to verify it. I guess I'll just wait for it to fall off next year. but I still find it odd that they are reporting different balances. what that says to me is they dont know what was actually charged off. or there is some sort of error. idk. but yes they were all disputed at the same time. I've almost got my report cleaned up the only 2 collections I have left on EX is both midland funding. And they are impossible to deal with. But I have 3 collections on TU and EQ. my scores are
EQ 535
TU 513
EX 614
I just wanna get this crap taken off so my scores will go back up to where they should be.
Message 3 of 12
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Frequent Contributor

Re: Charge off account showing different balance on credit reports.

Fairly new contributor here but here's one info that's posted online by one of the CRB's (not sure if I'm suppose to post this type of link on this board)


"If the creditor has not sold or transferred the debt to a collection agency the charged off account still will report the balance owed. Once the balance is paid, the account status will be updated to show "Paid Charge Off" and the balance will be updated to zero.

Often, when an account is written off or charged off, the creditor will sell the debt to a collection agency and the balance on the original account will be updated to zero. If so, you no longer owe the balance to the original creditor. Instead, the collection agency becomes the legal owner of the debt.

 

If this is the case, making payments to the original lender will not result in a change to the status of the original account. Any payments should be sent to the collection agency. Once paid in full, the entry for the collection account will be updated to "Paid Collection"

 

So it appears in your case either the data has not updated yet to zero on your CR if the original creditor sold this charge-off to MLF. So at the very least you can dispute that the balance showing on your CR should be updated to 'zero' if in fact it was sold to MLF would be my take.

I've dealt with MLF before online and I had the exact opposite experience they will work with you to get this cleaned up off of your CR.

 

Congrats on the decision on the home buy, get that TU & EQ to at least 588 you should be in good shape...

 








"Give me liberty, or give me credit!" -PlasticDad


Message 4 of 12
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Regular Contributor

Re: Charge off account showing different balance on credit reports.


@PlasticDad wrote:

Fairly new contributor here but here's one info that's posted online by one of the CRB's (not sure if I'm suppose to post this type of link on this board)


"If the creditor has not sold or transferred the debt to a collection agency the charged off account still will report the balance owed. Once the balance is paid, the account status will be updated to show "Paid Charge Off" and the balance will be updated to zero.

Often, when an account is written off or charged off, the creditor will sell the debt to a collection agency and the balance on the original account will be updated to zero. If so, you no longer owe the balance to the original creditor. Instead, the collection agency becomes the legal owner of the debt.

 

If this is the case, making payments to the original lender will not result in a change to the status of the original account. Any payments should be sent to the collection agency. Once paid in full, the entry for the collection account will be updated to "Paid Collection"

 

So it appears in your case either the data has not updated yet to zero on your CR if the original creditor sold this charge-off to MLF. So at the very least you can dispute that the balance showing on your CR should be updated to 'zero' if in fact it was sold to MLF would be my take.

I've dealt with MLF before online and I had the exact opposite experience they will work with you to get this cleaned up off of your CR.

 

Congrats on the decision on the home buy, get that TU & EQ to at least 588 you should be in good shape...

 

Have to agree here. Unless they have changed their business model yet again, I recently helped my bro in-law (March 2018 timeframe) with a Midland collection. At the time they even proudly bragged on their website that they PFD as long as the debt was at least 2 years old. Negotiated at 40% of what was owed and to my astonishment they agreed PFD on all 3 CRA's and even sent him in writing via fax the policy of PFD. Hats off to them in this business decision and helping the consumer tackle their mistakes and hopefully learning from it. Wish they all could operate this way! Smiley Wink 


 

Message 5 of 12
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Established Member

Re: Charge off account showing different balance on credit reports.

The auto loan was not sold to midland funding.  Those are from credit one bank.  Which my EQ and EX show midland funding and my TU shows credit one.  Not quite sure whats going on with that either.  The Auto loan was never sold to a collection agency it just shows as a charge off.  I am actually trying to get my scores to a 620 or higher so I can use the VA loan.  100% financing!!  Thanks for everyones response.  I just wish I could get these things off my report.  One of the midland funding accounts will reach 2 years of age on the 23rd of November, and according to their website they will stop trying to collect after 2 years if I read that correctly.  Consequently I think im having a double jeopordy case here.  The accounts all show a balance with the original creditor and charged off status or sent to collections.  Idk if that makes a difference on my score or not.  I wish my EQ and TU report was more similar to my EX report.  If that was the case then I would be in good standing as far as my scores go.  My EX mortgage score is a 623.  Part of the reason why my EX score is so much better as well is im actually able to file disputes online with them EQ continues to say the information I entered doesnt match their records, even though I put in what is exactly on my report.  And I havent had the option to "file a new dispute" with TU for over a month now.

Message 6 of 12
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Established Member

Re: Charge off account showing different balance on credit reports.

also the creditor from the charge off account frequently submits inquiries to my credit reports.  for whatever reason

Message 7 of 12
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Regular Contributor

Re: Charge off account showing different balance on credit reports.

Last time I checked Midland policy was two years from DOFD (when the account became past due), not 2 years since they got the account.

 

For a 6-7 year old charge off lookup "Early Exclusion." Sometimes you can get negative account removed a few months before the 7 years they're allowed to stay on your reports. Again, this is based on when the debt became delinquent and not when it was last transferred to a debt collector.

Message 8 of 12
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Regular Contributor

Re: Charge off account showing different balance on credit reports.


@mryflyguy wrote:

Last time I checked Midland policy was two years from DOFD (when the account became past due), not 2 years since they got the account.

 

For a 6-7 year old charge off lookup "Early Exclusion." Sometimes you can get negative account removed a few months before the 7 years they're allowed to stay on your reports. Again, this is based on when the debt became delinquent and not when it was last transferred to a debt collector.


Agreed. Like I said as long as debt is at least 2 years old and Midland's policy still remains in effect you should be able to negotiate and PFD (ymmv). Never said it had to be with Midland for 2 years but good point.

 

Message 9 of 12
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Established Member

Re: Charge off account showing different balance on credit reports.

well I've tried the early exclusion route to no avail.  I requested to speak to a supervisor a few times and everytime I've talked to someone they act like they have never even heard of early exclusion.  fortunately the SOL in Mississippi is only 3 years so I should be able to get both of these accounts removed shortly.  hopefully

Message 10 of 12
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