No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I paid a power utility CO that is several years old. They reported a late for the month and then status of paid. No prior montlhy status before this.
Of course this hurt my credit score with the most recent missed payment being less then a month old now. I believe this only happened on Experian.. Anyone have suggestions on how to challenge this?
@steve123 wrote:I paid a power utility CO that is several years old. They reported a late for the month and then status of paid. No prior montlhy status before this.
Of course this hurt my credit score with the most recent missed payment being less then a month old now. I believe this only happened on Experian.. Anyone have suggestions on how to challenge this?
No, there is no grounds for challenging it. They updated their report to paid as required by law. Anytime an account is updated, FICO sees that as a "late" for that month.
I have paid several CO's over the past year(CITI, Cap1, and others). This is the only one that has updated the payment status with a late.
I agree with Norman.
It remains delinquent up to the point it was paid. It would update scoring-wise regardless of whether an actual monthly delinquency was also reported, as the account was delinquent up to that point.
It is very common for creditors to cease reporting of additional monthly delinquencies once they have reported a charge-off.
That does not mean that they could not have done so, or that one who does so is inaccurate.
So why not report the late each month? I have only seen a status of CO after the initial 30, 60, 90,120,150. The CO status was updated monthly by some creditors.
I always assumed they had to report it as a CO after that period. If not it seems most would report monthly late's for maximum damage. It makes no sense to me that they could report it as a late once it is paid off several years later.
Thanks for the replies.
@steve123 wrote:So why not report the late each month? I have only seen a status of CO after the initial 30, 60, 90,120,150. The CO status was updated monthly by some creditors.
I always assumed they had to report it as a CO after that period. If not it seems most would report monthly late's for maximum damage. It makes no sense to me that they could report it as a late once it is paid off several years later.
Thanks for the replies.
They are not legally required to do so. Yes, they 'can' report all those lates - but they often do not. I would never question lates that 'could' be reported but are not. As the old saying goes - never look a gift horse in the mouth.
Federal banking regulations do require the taking of a charge-off after certain periods, usually 180 days or more, but the creditor is never requried to report a CO to the CRAs.
Continued reporting of delinquencies and/or any charge-off they may have taken is optional.
The requirment is that what they do report cannot knowingly be inaccurate, not that they must report each and every derog.
Similar experience here.
Verizon charged off my cell phone account 2.5 years ago.
They repoted lates every month till february 2016 when I settled with them. Only on experian is it showing a single "failed to pay" in feb 2016 now, the other two CRA's show no history info. So my EX score is about 35 points lower than the other two, showing a recent late payment on a two and half year old bill.....
At least now it will start to age off. Kinda burns me how they get away with making it look like a recent account. I assumed Verizon put that late there, but maybe Ex did?