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Charge off reporting

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Anonymous
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Charge off reporting

i have an account that was charged off last year. Since the. They report a new 90 day late each month and the account is still marked as open. I am making Payments but not paid in full yet. Can they continue to report new late payments every month. If have read both ways on this matter, does anyone have a solid answer possibly with legal reference
Message 1 of 4
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Anonymous
Not applicable

Re: Charge off reporting


@Anonymous wrote:
i have an account that was charged off last year. Since the. They report a new 90 day late each month and the account is still marked as open. I am making Payments but not paid in full yet. Can they continue to report new late payments every month. If have read both ways on this matter, does anyone have a solid answer possibly with legal reference

There is no legal requirement for them to stop reporting of monthly deliquencies, even though most OCs will stop monthly reporting after a CO.

Message 2 of 4
gdale6
Moderator Emeritus

Re: Charge off reporting


@Anonymous wrote:
i have an account that was charged off last year. Since the. They report a new 90 day late each month and the account is still marked as open. I am making Payments but not paid in full yet. Can they continue to report new late payments every month. If have read both ways on this matter, does anyone have a solid answer possibly with legal reference

Techincally you are still in default so in keeping with the FCRAs requirement to report accurate info they do so each month as they are updating the balance to reflect your payments. Paying it off sooner will stop the Fico score hurting and it will stop updating on a monthly basis, this is per the CRAs operating manual that they should stop reporting once the account is paid in full, there is no legal requirement for them to do so and some creditors will continue to report even once its been paid off. This IMO is just pure spite on their part to do so.

Message 3 of 4
Anonymous
Not applicable

Re: Charge off reporting


@gdale6 wrote:

@Anonymous wrote:
i have an account that was charged off last year. Since the. They report a new 90 day late each month and the account is still marked as open. I am making Payments but not paid in full yet. Can they continue to report new late payments every month. If have read both ways on this matter, does anyone have a solid answer possibly with legal reference

Techincally you are still in default so in keeping with the FCRAs requirement to report accurate info they do so each month as they are updating the balance to reflect your payments. Paying it off sooner will stop the Fico score hurting and it will stop updating on a monthly basis, this is per the CRAs operating manual that they should stop reporting once the account is paid in full, there is no legal requirement for them to do so and some creditors will continue to report even once its been paid off. This IMO is just pure spite on their part to do so.


FWIW, In my personal experience, updating of a paid accounts does not seem to affect my FICO 8 scores. I had a couple of paid accounts that were disputed and when they updated, my FICO 8 scores remained the same. This would seem to confirm my suspicion that updating of an unpaid account does not make it look "new" to FICO, but rather FICO interprets this as increased collection efforts by the CA...

Note that this is from my own personal experience and I can't confirm this holds true for others.

 

I also have no idea if this is just something unique to FICO 8, and earlier score models may indeed behave differently.

Message 4 of 4
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