Charge-off status changed after paying in full. Is this right?

[mada]

Hey guys!

So I recently paid off a charge-off auto loan (which was a repossession) in full.  I have a couple questions regarding the new updated remarks and what may happen next.

I also think the charge-off might get deleted entirely because of a dispute they havent answered yet which would be awesome, but here's what's going on.

I made the last big chunk payment on August 14th, (creditor is TD Bank) and they promised to mark the charge-off as paid in full.

On August 24th I went through some internal grapevine via the manager at my bank to find out when they would be reporting the updated charge-off to the bureaus.  They told me they had reported the updated information to the bureaus 3 days prior, on August 21st.

So I opened a dispute on September 2nd with all 3 bureaus telling them that the account has been paid in full and hasn't been updated as such, so each one said they will of course let me know the results when they get them.

Anyway, today my Credit Karma updated and is showing the charge-off having a balanace of $0, but I'm unsure of what the new remarks on the account mean.

The remarks on the charge-off now say,

"Payment after charge off/collection

Paid profit and loss"

Is that what a paid in full charge-off should say in the remarks?

Also, my second question, i notice that my credit report is showing the new information since I opened the dispute, however they have not yet responded to my disputes (at least they definitely haven't responded to my Equifax dispute, I can check the status of that one online.)

Is there a chance that they are just going to ignore the dispute since they updated my credit report since then?  That would be sweet because then it would just get deleted entirely.

Any clarification on this would be great, I'm on a friggin mission to get my credit where it should be so I can be in the market for a home sooner than later.

Thanks!

[pizzadude]

Moving to Rebuilding forum

[Anonymous]

Did you get in writting that they will remove it ?

[tomfromrictmame]

This how a paid in full charge off is usually reported.  The CO reporting it as a charge off is for accounting purposes so they can write it off as a bad debt.  You paying unfortunately doesn't change that.  If they did not agree to delete, then sending GW's is your next step.

[mada]

@sapingo

No, I tried but they wouldn't budge on that.  I did however get them to provide in writing that it will be marked as paid in full, they did agree in writing however to mark it is "paid in full" if I paid the principle (they waived the interest).  Which I did.   Also, the creditor is TD Bank so I didn't expect them to agree to delete anyway.

So I'm happy with the paid in full notation anyway, because at least in the eyes of the individual actually looking at your credit report they will see that the debt has been paid in full as agreed, which counts for something beyond the score itself.  This charge-off is back from 2010, so still having 3 years to go I figured it was in my best interest to pay it off in full since I plan to be on the market for a house purchase in the next year or so.

@tomfromrictmame

I'm glad to know that is how it's supposed to read, was just double checking that was accurate.

On another note I opened a dispute with all 3 bureaus a few days before the credit reports actually got updated, which are still pending btw.

I'm kind of hoping that I opened the disputes at just the right time, because now if they ignore them because it's already been updated since then, I might luck out and the thing might still get deleted

Last time I opened a dispute on this charge-off, which was a separate issue regarding payment history, they responded to the disputes within 5 days.  It's been more than 5 days since this recent dispute I just opened, kind of hoping they have already overlooked it or neglected to respond since the credit report is now showing properly.  I hope to god they do get overlooked by TD Bank so the CRA's will have no choice but to delete it completely!

Has anyone else had that happen?  The credit just happens to not respond to a dispute for whatever reason, resulting in the account disappearing from your report?  That would be AWESOME!

[taxi818]

Honestly.If you couldnot get them to delete it.. it would have been better to leave it alone. but since you did pay it. and the date of satus change is now new date.

It really does not make a difference what it says. after paid. it will be closed.

so it really does not matter. it says paid. whatever it says after that does not matter. even if it said settled . paid and settle. it has no different effect on your score. good luck.

[mada]

First of all.  I pay my debts, it's part of my character.

I have been making small monthly payments since I incurred the charge-off, never missed a single payment since. (as the reason I went behind was being screwed over by a contractor who didn't pay me for about 3 months worth of work)

Second, it makes a HUGE difference whether it says settled, paid, or otherwise.  Because when you're applying for a loan the loan officer is going to see whether or not you paid your debts, regardless of whether or not they went into collections for whatever reason.  It may not impact your score, but it makes a significant show of character when going for a loan.

There is far more to "credit" than your "score".  paid or not paid, regardless of it being a charge-off/collection, makes a significant diffference in the eyes of a PERSON.

Don't underestimate the power of paying your debts, it can go a long way when it's a person approving you for a loan rather than a computer that only sees a number value.

Anyway, the reason I have hopes that it might still get deleted is because the bank might not respond to the disputes (at least they haven't yet) and just ignore them, not because I paid the debt.

My only goal here was to show on my credit report that I have paid what I owed, if it gets deleted now that's just a bonus.  I will have to wait and see.