I am working to rebuild and fix credit, and all three of my scores are mid to upper 500's.
My husband and I had a joint secured loan through OneMain financial (from when it was Springleaf). We had a seperation and the account defaulted (joint account....joint at fault). My husband made a few other poor credit decisions during that time and we ended up filing bankruptcy for him only, so the loan is no longer affecting him.
The loan was taken out in June of 2013, and first defaulted in January of 2016. Over the last couple of days, I have gotten notifications about the account. On Equifax and Experian it looks like they changed the status to a settlement "legally paid in full for less than the balance owed", and on Transunion it said it went from closed to current, and then another notification said it is being reported as a new account, and a third that it is being reported as a charge off (which it already was??)
My score dropped 4 points from changing it to a settlement on Experian, not sure about the other 2.
I'm wondering why they would change it? I haven't communicated with them since 2016, they haven't even mailed any collections notices. Should I dispute this because it is incorrect information? I don't want to dispute it and then have them try to collect the balance ($7500) because I poked at it...
It's due to the bankruptcy. Even though only your husband filed, you get the benefit of what's called a "phantom discharge"- basically all community obligations are included, whether you filed or not. Since he did, you get the discharge, unless you solely want to re-affirm the debt & take it on as your own solo debt, which I doubt you'd want to do. It should be showing as included in bankruptcy, current and closed.
Thank you! I do not want to re-affirm the debt, I just couldn't tell what was happening there. The bankruptcy was discharged almost 2.5 years ago, so it just took them some time to enter that.