Frustrated...

[j_casteel]

So a few months ago i was finally able to take care of my last & final past due debt from an account in 2007. They were taking forever to update so I called them and they suggested that I dispute the account online which will hopefully get them to update sooner. I waited another month til i disputed. A few days ago myFICO had a score change & account change alert. They had updated my account as if I had made a payment on the debt and still showing a balance and it caused my score to drop 10pts. I immediately emailed their dept. and explained everything to them. I got a call back this morning explaining that the error has been corrected and should show a zero balance and the account should report as settled in full/or less. The guy did say they do their reporting on the 15th of every month so I will have dispute the account again to get it correct or wait until it reports in mid-April.

The damage has already been done on my score, but do you think if I dispute it again and when it is reported correctly that my score will come back up? This was my last and final bad debt and was so proud to have gotten everything taken care of, but i feel that i shot myself in the foot instead due to the fact that this debt and a lot of other debt was due to fall off next year, but now its going to remain for 7 more years since i paid it. I just didn't feel right not paying what i owed.

Happy Monday!

[guiness56]

If it is due to be excluded from your report next year, it still will. 

It is a huge misconception that paying a debt makes it stay longer and it just is not true.  Every CO or CA has a DoFD attached to it.  That is what determines when something will be excluded.  Nothing changes that.

What type of debt was it?  A CO with the OC or a CA.

[LIGHTNIN]

Paying a debt doesnt change the date of removal, if the removal date is next year that will remain the same.

The CRTP (credit reporting time period)  for a debt with a CA, is up to 7.5years starting from  the DoFD (date of first default).

Paying a debt doesnt add  7 more years of reporting.

[j_casteel]

Thanks for clearning that up for me. That makes me feel better. It was an old installment loan with a credit union from 2007. I have been making small payments on it to keep them from going to a CA, but finally was able to just settle the debt and pay it off. When that happens is it normal for it to update and cause your score to go down like mine did? I know they messed up on the reporting, but should them reporting a payment made on it cause it to go down, and if so, then will correcting it cause it to go back up?

Thanks,

John

[guiness56]

Have they been reporting each payment you made?

Was it CO'd?

[j_casteel]

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@j_casteel wrote:

Thanks for clearning that up for me. That makes me feel better. It was an old installment loan with a credit union from 2007. I have been making small payments on it to keep them from going to a CA, but finally was able to just settle the debt and pay it off. When that happens is it normal for it to update and cause your score to go down like mine did? I know they messed up on the reporting, but should them reporting a payment made on it cause it to go down, and if so, then will correcting it cause it to go back up?

Thanks,

John

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The small payments weren't being reported or anything as far as i can tell. they just told me to pay when i could and they wouldn't give it to a CA. It has been listed as a charge off and the "date of last activity" is 11/1/2007. I didn't have any payment plan setup with them, but would call them every so often to let them know my plans for taking care of the debt, and then in January I was finally able to work with them to get it taken care of.

[guiness56]

They reported it paid and closed and it dropped your score because it updated the account.

[j_casteel]

This the alert i got from myFICO after I disputed the account after my discussion with the CU. I think I'm going to have to dispute it again from what the guy at the CU told me today unless I want to wait til April 15 when they update the report.

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Account opened: 2/2007

Description: Consumer disputes - reinvestigation in process
Charge off account
Auto loan
Fixed rate

	Previously reported	Newly reported
Balance:	$6,808
Past due:	$6,808	$2,723
Status:	Bad Debt; Placed for collection;	Bad Debt; Placed for collection;
Last activity:	11/1/2007	11/1/2007
Description:	Consumer disputes - reinvestigation in process Amount in high credit is original charge-off amount	Consumer disputes - reinvestigation in process Charge off account Auto loan Fixed rate

[j_casteel]

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@guiness56 wrote:

They reported it paid and closed and it dropped your score because it updated the account.

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Well, he said now that he has it fixed it will report paid and closed with a zero balance but i will have to wait til mid-April unless I dispute it again. He said that since I did pay it that it will report for 7yrs after this month, but I didn't know that for sure is why I asked. I thought it was counted from the DoFD, but have heard other things but that has mainly been from lenders and not people on here.

[guiness56]

The only differences is no balance and a lower past due.  Did you settle?  It should say paid and closed.

I wouldn't dispute right away.  The CRAs can say it is friviolous. 

What was the agreement?