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Derogatory Indicator on an Account paid satisfactorily?

New Member

Derogatory Indicator on an Account paid satisfactorily?

I'm trying to figure out why my FICO score for both EX and TU has been so much lower than EQ and just purchased their respective 1B reports.  

 

All my accounts show as "no" negative indicator except one.  

 

I have an old auto lease that closed in 2013 with a negative Indicator.  I'm looking for some help to undertstand why this account has been flagged as negative.  Here's the account details from the report.  

 

Balance: Not Reported

Current Status: Paid or paying as agreed

Status as of: Oct, 2013 
Date opened: Aug, 2012
Date of last activity: Not Available

Loan type: Lease
Terms: 36 Months
Account Type: Installment

Descriptions: Early Termination/Insurance Loss

 

30 days late: 0 times

60 days late: 0 times

90+ days late/other derogatory: 0 times

 

Thank you in advance for your help

 
Message 1 of 8
7 REPLIES
New Member

Re: Derogatory Indicator on an Account paid satisfactorily?

Some more information.

 

Both EX and TU have "Early Termination/Insurance Loss" in the description language while EQ has "Lease-early termination".   This was an auto lease where the vehicle was a total loss and the insurance paid out the lease.

 

After speaking with FICO customer service, she believes that the wording in the EX and TU file is triggering FICO to believe this is a negative mark.  I've already started disputes with EX and TU but I'm not very confident they will be able to do anything here or think this is their problem.

 

I believe FICO needs to fix whatever is making it think these are bad accounts.  Thoughts?

 

 

 

Message 2 of 8
Frequent Contributor

Re: Derogatory Indicator on an Account paid satisfactorily?

I wish you luck on your disputes.  I'm not sure how the CRA's will react.

 

My only suggestion would be to also contact the company that reported it and kindly ask them to remove the description or maybe change the wording (instead of "insurance loss", maybe "paid by insurance").

 

Hopefully, more experienced and knowledgeable myFicoers will chime in soon!

 

Good luck!

 

 

Message 3 of 8
New Member

Re: Derogatory Indicator on an Account paid satisfactorily?

Thank you.   I'll be calling FICO customer service again tomorrow to see if there is anything they can do.  I found two other posts of people having similar issues:

 

http://ficoforums.myfico.com/t5/myFICO-Product-Feedback/Re-Early-termination-amp-insurance-loss/m-p/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Early-termination-amp-insurance-loss/td-p/311...

 

I've also filed a complaint against FICO on the CFPB site and I'll now have to dig into my records to find the US BANK account info to see if the bank can adjust the wording.

 

 

Message 4 of 8
New Visitor

Re: Derogatory Indicator on an Account paid satisfactorily?

Do you have any updates on this?  I am just now having the exact same issue and I am not sure what to do. Thanks

Message 5 of 8
New Member

Re: Derogatory Indicator on an Account paid satisfactorily?

Yes -- I disputed the acccount with EX explaining that the language is erroneously interpreted as derogatory with FICO.   It's not entirely clear to me what EX did, but the account dropped off of all 3 credit bureaus.   My theory is that EX went back to the issuing bank and the bank decided to remove the account instead of updating the language.

 

Not ideal as now I have one less account helping my credit but the problem was solved.

Message 6 of 8
Super Contributor

Re: Derogatory Indicator on an Account paid satisfactorily?


@squarefacedThank you.   I'll be calling FICO customer service again tomorrow to see if there is anything they can do.  I found two other posts of people having similar issues:

 

http://ficoforums.myfico.com/t5/myFICO-Product-Feedback/Re-Early-termination-amp-insurance-loss/m-p/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Early-termination-amp-insurance-loss/td-p/311...

 

I've also filed a complaint against FICO on the CFPB site and I'll now have to dig into my records to find the US BANK account info to see if the bank can adjust the wording.

 

 


Your complaint isn't against FICO, though.  A lender reports to the CRAs and the CRAs provide the information reported.  The FICO algorithm then takes that information and provides a score.  What you need to do is contact the lender and have them report the account accurately.  They then report it accurately to the CRAs, the CRAs update the info on the account accordingly, then when a FICO algorithm takes that information the next time and generates a score it's using the correct data.  Your gripe here isn't against FICO (3rd in line) or even the CRAs (2nd in line) it's against the lender, who is first in line.  IMO, you should be taking this issue up with the lender.

Message 7 of 8
New Member

Re: Derogatory Indicator on an Account paid satisfactorily?

Yes that was my mistake and the CFPB complaint didn't go anywhere.    As I wrote above, my dispute with the credit bureau solve the problem.

Message 8 of 8