Effects of PIF Charge Off (Back dated to first delinquency)

[Anonymous]

Summary: Will this help or hurt my score? 

I found a charge off on my report dating back to April of 2017 as DOFD with a balance of $325. The CRAs are reporting this as an amount past due for the past 26 months. Experian lists it as 'delinquent credit card balance'

Account Type: Unsecured
Responsibility: Individual

Terms: 1 Months

DOFD: Charged off in April 2017

Status: Account charged off. $325 written off. $325 past due as of May 2019

Status Updated: May 2019

Balance: $325

Original Balance: $325

Balance Updated: May 2019

My report shows the balance and status has been reporting every month since DOFD. 

This never went to a collection agency and has remained with the OC. In exchange for my payment of the full amount they've agreed to change the status to payed in full on the DOFD in 2017.

The derogatory will obviously still remain, but with it changed to PIF on the DOFD should help the 'delinquent credit card balance' for the past couple of years. 

[Remedios]

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@Anonymous wrote:

Summary: Will this help or hurt my score? 

I found a charge off on my report dating back to April of 2017 as DOFD with a balance of $325. The CRAs are reporting this as an amount past due for the past 26 months. Experian lists it as 'delinquent credit card balance'

Account Type: Unsecured
Responsibility: Individual

Terms: 1 Months

DOFD: Charged off in April 2017

Status: Account charged off. $325 written off. $325 past due as of May 2019

Status Updated: May 2019

Balance: $325

Original Balance: $325

Balance Updated: May 2019

My report shows the balance and status has been reporting every month since DOFD. 

This never went to a collection agency and has remained with the OC. In exchange for my payment of the full amount they've agreed to change the status to payed in full on the DOFD in 2017.

The derogatory will obviously still remain, but with it changed to PIF on the DOFD should help the 'delinquent credit card balance' for the past couple of years. 

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Hi and welcome!

Resolving a CO always helps, but how much simply depends on whether you have other derogatory info present on your CR. 

In this case, it will help because paying it off will stop the reporting and your score can start recovering. 

If you have other unpaid COs and collection accounts, there wont be too much gain scoring wise. 

[sjt]

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@Remedios wrote:

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@Anonymous wrote:

Summary: Will this help or hurt my score? 

I found a charge off on my report dating back to April of 2017 as DOFD with a balance of $325. The CRAs are reporting this as an amount past due for the past 26 months. Experian lists it as 'delinquent credit card balance'

Account Type: Unsecured
Responsibility: Individual

Terms: 1 Months

DOFD: Charged off in April 2017

Status: Account charged off. $325 written off. $325 past due as of May 2019

Status Updated: May 2019

Balance: $325

Original Balance: $325

Balance Updated: May 2019

My report shows the balance and status has been reporting every month since DOFD. 

This never went to a collection agency and has remained with the OC. In exchange for my payment of the full amount they've agreed to change the status to payed in full on the DOFD in 2017.

The derogatory will obviously still remain, but with it changed to PIF on the DOFD should help the 'delinquent credit card balance' for the past couple of years. 

---

Hi and welcome!

Resolving a CO always helps, but how much simply depends on whether you have other derogatory info present on your CR. 

In this case, it will help because paying it off will stop the reporting and your score can start recovering. 

If you have other unpaid COs and collection accounts, there wont be too much gain scoring wise. 

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+1

Also wanted to add that you will get a score bump once the C/O is paid and updated on your CR.

[RobertEG]

Are you saying that they have agreed to update the account to show that it was paid on the date of first delinquency, and thus remove any and all payment history profile reporting of CO for any month after the DOFD?

If that is what they agreed, then that would be knowingly inaccurate reporting, and not simply the omission of payment history profile.

I assume that they meant they will update the current status to show paid as of the date of that reporting, and not that they would backdate the date of payment......?

[Anonymous]

Back dated to the first month it was charged off. I had to ask him 2 or 3 times to make sure I wasn't misinterpreting it. 

No collections, but 4 60 day lates between 2015 and 2016 (not counting this charge off).

[RobertEG]

So, they will then report CO for only a single prior month under payment history, and then paid as of the next month, with no more derogs under payment history after the single prior month that it was first reported as a CO?

The problem with the reporting is that the DOFD must, by definition, precede the date that they took or reported a charge-off.

DOFD usually precedes a CO by 4-6 months.

Did they first report a CO in April 2017, or was that the reported DOFD?  They cant be the same month.

Regardless, the last date of reported delinquency after the DOFD will then define the total period of the account delinquency, and thus the severity of the scoring of the CO.

A credit report does not show or record the actual date that a creditor takes a charge-off.  All that is reported is the date that they chose to report that they had, at some prior point in time, taken a CO, and the date of first delinquency that preceded their taking of the CO.

Thus, if they promised to back-date to the date they took the CO, that date is not known from your credit report.

It is still unclear to me what exactly they have agreed to remove.

It is also my opinion that back-dating the date paid to some date prior to its actual payment date would be improper reporting on their part, but since it would be to your favor, you may wish to ignore that inaccuracy.......