Credit card reporting and charge off status?

Question

My daughter has an issue with Capital One and their credit reporting practices. She has paid all of her bills on time for the past 5 years, but a Capital One CC closed in 2002 drags down her score because it is reported with new amounts every few months when interest is added, even though it's reported as a charge off. This makes it appear that she is more than 60-90 days days late even though the last activity was in 6/02. Her CC balance was $250 when it was closed and is now reported as $1,400 due to interest! How can she get this reported correctly instead of it being reported as a more recent debt? I am aware that adverse information remains on your credit report for 7 years from the date of last activity, but they seem to be restarting the clock continually, this can't right. The account was recently sold to a third party who is not yet reporting it.

Answer 1

If I were you I would go to www.creditboard.com it's a free site and you can get loads of information on how to dispute what's on your credit report, they have sample letters. I went to Financial Planning class and they told me that Capital One was the worse credit card that one could have.....

Answer 2

Echo is right...Just make sure they don't reage the account, because at that point, the 7 year clock starts again. If the last activity was 6/2002 and her balance was only a couple hundred bucks, I would wait it out until 6/2009 when it drops off. You won't see any agency reporting it on her credit reports, it's already there via Cap 1. If they do, just dispute it, if they don't respond with validation of the debt within 30 days (By law) the trade must be deleted from her credit report.

Answer 3

Dispute this item with the credit bureaus that Capital One is reporting to. In the dispute state exactly what you have stated here.

The link below in the "sources" area details exactly what the creditor's responsibilites are in reporting items to the credit bureaus.

BTW...a negative drops off seven years from the first date of delinquency before the charge off, not from the date of last activity.

Answer 4

I agree with the first two posters - but - unfortunately updating the report to show the new interest added is legal. As long as they don't actually re-age the account.
Keep a close eye on them because they have been known to post phantom payments to accounts to be able to report for a longer period.

The site the first poster listed is a great site and does have tons of info on fighting Cap One.