If I paid a creditor thru Escrow, have a copy front & back of the cancelled check with the creditor's stamp cancelling the check, & they refuse to change the "charge off" reporting to the Credit Bureaus....isn't this illegal? How in Hades can I correct it, I've tried for over a year...help!
2006-12-18 18:45:21 · 3 answers · asked by Lumin8or 2 in Business & Finance ➔ Credit
Hello. At the base a credit report is a fact based historical log of credit activity. So a dispute has to be that the facts are not correct. If your account charged-off then you paid it, it should be reported as a paid charge-off with a zero balance.
If there is an error: 1. Write the creditor ask them to correct the error.
2. If they do not respond.
3. Send a letter to the credit bureaus, with a copy of the 1st letter. State that the creditor has not responded to your request. And that you request that the tradline be delted from your file.
2006-12-18 19:38:58 · answer #1 · answered by Gatsby216 7 · 0⤊ 0⤋
If an account is charged off, and then you pay it, it is a paid charge-off and will report as such for 7 years from the date of last activity.
How else do you expect them to report it? As paid as agreed? If a company charges off an account it is because they did not receive payment as agreed in the original contract; the debt is usually more than 120 days past due when it is charged off.
You can try to contact the company and ask if they will change the way the status is reported, but even if they did, the reporting would be inaccurate, as the correct rating is "9", with a comment "paid charge off".
2006-12-18 23:24:00 · answer #2 · answered by RedSoxFan 4 · 0⤊ 0⤋
You said you paid it, but the question is, did you pay it as agreed, or late?
Most creditors are required by convention to recognize a 'loss' when the account becomes 180 days contractually past due'. That is the point at which an account is 'charged off".
Once charged off, that becomes 'adverse information', and by federal law (FCRA), it can remain there for 7 years. The balance owing changes to zero, but the reference is valid, and stays.
Paying the account is not sufficient to change the rating.
2006-12-18 19:15:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋