HELP! Paid First Progress charge off reporting new negative info

[Anonymous]

I need some guidance on what I should do next. This card DOFD was 7/2014 and the charge off happened in 1/2015. It had been reporting dates and charge off date correctly. I paid the balance in full in 2/2018 in an effort to raise my scores. Every since they have been reporting as a new charge off for the last two months. Every time the FP reports it drops my score 20+ points. This is only reporting this way on Experian other reports seem fine.

I disputed the info as soon as I saw it and the dispute was closed and nothing changed. They said that First Progress confirmed the info was correct. I've tried calling and writing First Progress but I am not getting any response. Should I dispute again through Experian? Has anyone seen something like this before? Can they continue to report even though it is paid? 

[gdale6]

Legally they can but per CRA rules once its paid its not to be updated. I would call Experian and reference their rules on this and that it should not be updating. Dont dispute it that will just cause the status date to come current again.

[Brooklyn2018]

qmbear,

I had the EXACT same thing report on my EX, too. I had sent them a GW(advised by FP) once I had paid the CO and the balance reported $0. Supposedly, they “honored” my GW but, the next two months reported FTP(Fail To Pay) for Feb and Mar. So, I called to find out what gives and turns out, according to FP, I was on a do not mail list, WHATEVER THAT MEANS?? So, the CSR took me off that so-called list and said I should see the GW adjustment next few reporting cycles, as it will take the CRA’s anywhere from 30-60 days to show the adjustment...I’m still waiting...I’m going to give it until June and then call back. I’m not sure if that is what’s happening on yours’ but, call and talk to a supervisor and see what the deal is??? They should be able to figure out where they’ve screwed up. I was SUPER NICE and got a better response so, FYI...get more bees with honey. I hope that helps some? Best of luck!!

I’ll post something something if the status changes any...heck, I may even call them before hand and see if they’ve done anything to the reporting status?? If so, I’ll post ASAP!!

[RobertEG]

A charge-off can be reported and appear in your credit report in several ways.

When a CO is initially reported, it is recorded under the current status for that month as a CO, and the amount of their initial charge-off is recorded as a sticky amount that is not changed in later reporting.

In subsequent months, if the debt remains delinquent, the payment history profile records the CO status for any prior month after it was charged-off, and the current status is additionally reported as a continued delinquency in the form of a CO.

Once the debt is paid, then the current status is no longer one of delinquency, and is reported in that month as paid.

The payment history profile can no longer show CO as its prior status for any month after the debt is no longer delinquent.

However, the CO remains of record in the prior payment history profile, and in the reported initial amount of the CO.

When you disputed, what exactly did you identify as the reported inaccuracy?

If your dispute clearly identified that the debt was paid on date X, and that thereafter either the payment history profile for subsequent months still reported as a derogatory status (i.e., CO) or that the current status was continuing to show as delinquent, then verification would be improper.

Improper verification can be cause for civil action, with the violation being a lack of reasonable investigation of your dispute.  See FCRA 623(c).  There is no provision under the FCRA for formal appeal of a finding in an  administrative dispute, and the recourse is to move the matter from an admin procedure to a civil action in court.

That will put the evidence supporting your assertion of improper verification before the court, who has the authority to find their verification to have been unreasonable.

[Anonymous]

I submitted a complaint to the CFPB and received the following response from First Progress. I also contacted Experian and gave them screenshots of the inaccurate info on my current Experian report and the accurate info on my Experian report in 2015.  They reopened my dispute. I also uploaded this letter to the dispute. Let's hope the info gets corrected now! 

[RobertEG]

The letter addresses the issue of a contested date of charge-off, and has nothing to do with the issue addressed in the original post, which was their reporting of payment history derogs after the debt was paid, and thus no longer delinquent.

What was the issue that was subject of the complaint with the CFPB?
It apparently was the date of charge-off, which the creditor was correct in stating that the date they took that accounting measure is not a reported field/date to the CRAs.

Reporting of a CO only makes of record that they took that measure at some prior, unspecified, date.

Only the DOFD is then required to be reported to the CRA.

That raises the issue of whether the continued reporting of a delinquency status after payment of the debt was an actual inaccuracy raised in your prior dispute with the CRAs.  

Did you actually dispute that issue, or was the dispute only related to the date of the CO?

[Anonymous]

They are not continuing to report payment derogs they are reporting it as a charge off which shows as FP (Failer to Pay) in the online reports. However, in my annual credit report, it shows as a charge off for April and May. I first disputed the FP's and provided proof that I paid off the debt and that is when first progress confirmed all the info was correct. I then looked at my more comprehensive report and realized the April and May FP is actually a CO. 

I called to point out that the charge off date was incorrect and they have reopened my dispute. I am due to hear the results of this dispute on June 6th. Again, this issue has been on Experian only. 

Interesting and exciting development today! First Progress changed the reporting on my Equifax from "Paid, was a charge off" to "Paid account as agreed." This has resulted in my Equifax score going from 710 to 777 overnight!!! 

At this point, I'm going to wait a few weeks to see what happens with the dispute. Maybe they've decided to give me a goodwill adjustment because of this mess.