Yes, so long as the original creditor still owns the debt, they can report the outstanding balance and update with a new delinquency monthly. Your credit limit on a closed, charged off account is $0 - that's why the util is over 100%.
If you pay / settle the debt, they will update the account to reflect a $0 balance, which will reduce your util, and cease future delinquency updates but the account, tho paid, will still remain in a chargeoff status. Paying it will allow the derogatory to age and your scores will begin to rebound.
If the creditor sells the debt to a collection agency, they must update the account to reflect a $0 balance, notate the account as sold and will no longer report future months as delinquent - tho the account will still reflect a chargeoff status. You'll also likely end up with an additional negative tradeline for the collection agency which will update delinquencies on a monthly basis.
If you pay / settle the debt, they will update the account to reflect a $0 balance, which will reduce your util, and cease future delinquency updates but the account, tho paid, will still remain in a chargeoff status. Paying it will allow the derogatory to age and your scores will begin to rebound.
If the creditor sells the debt to a collection agency, they must update the account to reflect a $0 balance, notate the account as sold and will no longer report future months as delinquent - tho the account will still reflect a chargeoff status. You'll also likely end up with an additional negative tradeline for the collection agency which will update delinquencies on a monthly basis.
To clarify OP, it sounds like the account is reflecting a credit limit, not zero CL, and the balance was near that CL, but with fees now exceeds the displayed CL?
