Equifax changed reporting of paid charge-off

[floweryu]

I had Citi credit card account that was charged off in 2013 and paid for less than full balance in June 2015. I recently got notification that my Equifax score dropped close to 100 points and the reason is that it updated my Citi account with "CO" (charge-off) code from June 2015 until now. The account details show "Reported balance $0.00" and account status "CHARGE-OFF". 

Other than that, I have perfect payment history from the time I paid off the account until now. I was planning to apply for a car loan, but this seems impossible now since my score dropped from a bit above 800 to around 700 overnight.

I submitted CFPB complaint, but I am not sure what else to do. I called Citi and they said they haven't reported anything and that my account shows that it's closed with 0 balance. Other credit bureaus are not showing charge-off, so Equifax is the only one.

[Bees18]

How do you find out what code something is under or which report shows this?

[floweryu]

It was in the report (I got it through Annual credit report)

I also noticed that myfico.com Equifax report shows the status of the Citi card as:

• STATUS
• Bad Debt; Placed For Collection;

which is incorrect.

[Bees18]

I would defiantly dispute this

[RobertEG]

The payment history profile, as explained in the common credit reporting manual, the Credit Reporting Resource Guide, provides for a history of the monthly status for prior months.

Once an account is paid, it no longer has any delinquency status.

Delinquency status can be either the period since first delinquency, such as 120-late, or charge-off.

It is clearly contrary to CRA policy to show an account that is no longer delinquent as having a delinquency status after it is paid.

The proper procedure is to FIRST file a dispute before involving the CFPB.

That requires the CRA to forward to the creditor, with the creditor then required to conduct a reasonable investigation, and the CRA to consider the investigation response from the creditor, and conduct their own reinvestigation.  Both the creditor investigation and the CRA reinvestigation are then subject to civil action if they provide verification of accuracy that is unreasonable.

Without a dispute resolution, the consumer is barred from bringing civil action.  FCRA 623(C).

While, in the posted scenario, the creditor asserts they have not reported a payment history as shown in the credit report, had a dispute been filed, they would have had to formally provide that statement to the CRA, and would have been reasonable basis for the CRA, as their final reinvestigation, to have corrected the payment history per the creditor's invesitation finding.

You should first file a formal dispute, thus compelling investigation and reinvestigation, before involving eithe the CFPB or the courts.

[floweryu]

Thanks for the reply! I did dispute the account with Equifax, but I disputed that it wasn't paid in June, July and August 2015 (it was reporting CO). Suddenly, after the dispute, the account status updated as Charge-off as current status. Then I filed a complaint with CFPB. They just updated the account as "Bad Debt; Placed For Collection" as current status after the dispute. So, I am unsure what to do. I believe that the account status should be "Closed" and then Paid, Settled for less than full balance.