Hi all,
Something happened today that I don't quite get. I have a charge off from Sears and it is about 4 years old. On 2 credit reports it had a balance of 0 but on Experian it had the 2K that was charged off. Anyway I disputed with Experian and I heard back yesterday that it was updated. Anyway, they updated the balance to 1500 and I was disappointed because I thought that Charge offs should show a 0 balance. Anyway, I got an alert from Myfico regarding my Equifax score today and it showed a balance change from 0 to 1500 on this charged off account! The thing is though that my Fico score went up from 680 to 690 on this same report! How is that possible with this increased balance? It also has a statement that customer disputes this information?
I don't know what to do about this balance thing. Should I pursue the change to 0 balance? Thanks for any advice.
Starting Score: 599
@Gerri wrote:Hi all,
Something happened today that I don't quite get. I have a charge off from Sears and it is about 4 years old. On 2 credit reports it had a balance of 0 but on Experian it had the 2K that was charged off. Anyway I disputed with Experian and I heard back yesterday that it was updated. Anyway, they updated the balance to 1500 and I was disappointed because I thought that Charge offs should show a 0 balance. Anyway, I got an alert from Myfico regarding my Equifax score today and it showed a balance change from 0 to 1500 on this charged off account! The thing is though that my Fico score went up from 680 to 690 on this same report! How is that possible with this increased balance? It also has a statement that customer disputes this information?
I don't know what to do about this balance thing. Should I pursue the change to 0 balance? Thanks for any advice.
A CO can report the balance due as long as the OC still owns the account, if they have sold it off it a JDB then they are required to report the balance as 0 and you will typically also see in the notations area "Sold or transferred to another lender". Your Fico has most likely increase due to certain attributes of the account no longer being considered due to the being disputed comment.
Thanks for your response. It used to say Account transferred or sold so could that mean that they still have it? I do want to go ahead and try to settle it if it is still with them. Dare I call them to find out? I can't figure out why it used to say 0 balance for over a year though..........
@Gerri wrote:Thanks for your response. It used to say Account transferred or sold so could that mean that they still have it? I do want to go ahead and try to settle it if it is still with them. Dare I call them to find out? I can't figure out why it used to say 0 balance for over a year though..........
Hmmm, maybe the had sold it and the purchaser then returned it to them, if they dont own it they have to report current balance as 0. If this account is still within your states SOL I would only call them if you are able to PIF or make some other monthly payment arrangement with them. If they tell you they dont own it then I would tell them they are in violation of the FCRA for reporting a current balance due and you want the account either removed in its entirety or it updated to reflect accurate info or you will file a complaint with the CFPB.
If I call them and they demand PIF from me, can I still try to work out a payment plan or will they be able to threaten to sue? I do need to figure out if they have sent it to someone else and are therffore reporting it incorrectly as having a balance. I am still wanting to get a car by the end of the summer at a reasonable rate and I don't want anything to lower my Fico score from the current 690. I am expecting (hoping) that when my Citi credit card reports my balance drop from 55 to 19% utilization ( I have paid it way down) in mid June that I will see another bump in my score.
@Gerri wrote:If I call them and they demand PIF from me, can I still try to work out a payment plan or will they be able to threaten to sue? I do need to figure out if they have sent it to someone else and are therffore reporting it incorrectly as having a balance. I am still wanting to get a car by the end of the summer at a reasonable rate and I don't want anything to lower my Fico score from the current 690. I am expecting (hoping) that when my Citi credit card reports my balance drop from 55 to 19% utilization ( I have paid it way down) in mid June that I will see another bump in my score.
You need to figure out if they can still sue you successfully. Each state has its own rules and time limits to be able to file successfully for a judgment. What state are you in??
I am in Georgia and I know the SOL is 6 years so yes, they can still sue. I might just wait until I get my car (fingers crossed) and contact them afterwards........
@Gerri wrote:I am in Georgia and I know the SOL is 6 years so yes, they can still sue. I might just wait until I get my car (fingers crossed) and contact them afterwards........
If this was a Sears credit card the SOL is 4 yrs (open ended accounts) , its 6 yrs for written contract. Credit cards are considered open accounts.