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Dispute caused new derogatory reporting years after PIF

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Regular Contributor

Dispute caused new derogatory reporting years after PIF

After my wife disputed some inaccuracies on a delinquent joint account that was paid in full almost four years ago, new negative information appeared on my credit report for that account. Previously, the account had reported with a payment status of "Paid, was a charge-off", with notations of FP (or CO, depending on the source -- this is from Experian's credit monitoring service) for March and April '13. April '13 is also the month when it was paid in full.

 

Now, instead of "Paid, was a charge-off", the payment status was changed to "Charge off", and an additional notation of FP was added for the current month of January '17 (i.e., almost 4 years after account was paid in full). The balance was still reported as $0.

 

Is the creditor allowed to do this?

 

After:

experian astoria jan 27.png

 

 

 

            ***************************************************************************************************************************************************************************

 

 

Before:

experian astoria jan 26.png

 

Message 1 of 5
4 REPLIES 4
Legendary Contributor

Re: Dispute caused new derogatory reporting years after PIF

The Payment Rating/Status is a code that retains the highest level of derog prior to the current status of Paid.

It is common for creditors, upon receipt of a dispute, to do a comprehensive review of prior history and report derogs that may not previously have been reported, thus providing a complete history.

If the account was charged-off at any time, it is proper for the Payment Rating to show CO.

Message 2 of 5
Regular Contributor

Re: Dispute caused new derogatory reporting years after PIF

The status code had previously been reported as a paid charge-off... is there any obligation on the creditor's part to retain that distinction?

 

And what do you think of the new derogatory entry in the account history for Jan '17?

Message 3 of 5
Legendary Contributor

Re: Dispute caused new derogatory reporting years after PIF

The account has numerous status codes.

The Current Status is your primary concern, which is a snapshot of its current status and reflects NO prior historical status.

The Current Status is Paid.

 

After an account is Paid, the status prior to the new Current Status is retained in a separate, historical code called the Payment Rating.

That is properly coded as the prior derog level, such as CO.

Message 4 of 5
Regular Contributor

Re: Dispute caused new derogatory reporting years after PIF

Thank you for your explanation, Robert.

 

Where do you see any indication in the updated reporting (the first of the 2 screenshots that I uploaded) that the current status is "paid"?

Message 5 of 5
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