Questions About Negative Reporting to CRAs

[nachocredit1]

I wanted to ask these questions, in terms of credit repairing, because some of the information found is several years old. Sometimes re-reviewing helps to find other avenues or angles. Please understand I have researched many times, but I always find different answers. I hope it helps.

 

1. Are OCs allowed to continue reporting "CO" statuses on a monthly basis?

 

2. Are CAs/JDBs allowed to report "CO" for any month other than when the OC reported this same status? For instance, if an OC reports a TL as charged off in say 10/2011, then can a CA/JDB get the account in 11/2012 and then report a CO for 12/2012?

 

3. In relation to the above question, shouldn't a CA/JDB technically only have one "CO" reported?

 

4. This is spoken about a lot on here and the research shows CAs are not supposed to report as a Factoring Debt. However, there was a complaint recently to Midland where they claim CRAs are advising them to use this status. Anyone else have any updated info on this?

 

5. If the OC, shows a TL as "charged off" and "written off" doesn't this mean it was reported to the IRS and the OC is not allowed to collect the debt any longer?

 

6. Is a "line of credit" from a credit union the same as an "Open" account as noted in the TL "Type" section on CRAs?

 

7. Is it ok for a TL status to show as both "Paid" and "Written Off" at the same time?

 

8. Specifically with Equifax, they have Date of Major Delinquency First Reported, does this serve as anything important in terms of credit repairing?

 

Any other questions from others?

[Clydesmom]

1. Are OCs allowed to continue reporting "CO" statuses on a monthly basis?

Yes, as long as it is a zero balance and accurate.

2. Are CAs/JDBs allowed to report "CO" for any month other than when the OC reported this same status? For instance, if an OC reports a TL as charged off in say 10/2011, then can a CA/JDB get the account in 11/2012 and then report a CO for 12/2012?

The CA cannot report it as a charge off on their trade line unless that is what they do.

3. In relation to the above question, shouldn't a CA/JDB technically only have one "CO" reported?

It is reported by the OC as charged off but CA/JDB typically report as factoring accounts or collection accounts not a charge off.

4. This is spoken about a lot on here and the research shows CAs are not supposed to report as a Factoring Debt. However, there was a complaint recently to Midland where they claim CRAs are advising them to use this status. Anyone else have any updated info on this?

No.

5. If the OC, shows a TL as "charged off" and "written off" doesn't this mean it was reported to the IRS and the OC is not allowed to collect the debt any longer?

Not necessarily. Only debt that is charged off in amounts of $600 or more get a 1099-c and are no longer collected by the OC. It does not stop the collection agency from trying to collect.

6. Is a "line of credit" from a credit union the same as an "Open" account as noted in the TL "Type" section on CRAs?

Don't know but would think so.

7. Is it ok for a TL status to show as both "Paid" and "Written Off" at the same time?

It should only show one status.

8. Specifically with Equifax, they have Date of Major Delinquency First Reported, does this serve as anything important in terms of credit repairing?

Yes, it tells you when the date for the SOL for suits starts running and the date for the SOL for reporting starts as well.

Any other questions from others?

[beli]

5. If the OC, shows a TL as "charged off" and "written off" doesn't this mean it was reported to the IRS and the OC is not allowed to collect the debt any longer?

Not necessarily. Only debt that is charged off in amounts of $600 or more get a 1099-c and are no longer collected by the OC. It does not stop the collection agency from trying to collect.

To clarify Clydesmom answer regarding 1099C no not necessarily does it get a 1099c. I have a debt that was $800 CO and sold never got a 1099c from either the CA/nor the OC. Not every debt that is over $600 and charged off will get a 1099c. It's possible yes, but not every debt will.

[SunnySideUp32]

1. Are OCs allowed to continue reporting "CO" statuses on a monthly basis?

Yes, as long as it is a zero balance and accurate.

2. Are CAs/JDBs allowed to report "CO" for any month other than when the OC reported this same status? For instance, if an OC reports a TL as charged off in say 10/2011, then can a CA/JDB get the account in 11/2012 and then report a CO for 12/2012?

The CA cannot report it as a charge off on their trade line unless that is what they do.

3. In relation to the above question, shouldn't a CA/JDB technically only have one "CO" reported?

It is reported by the OC as charged off but CA/JDB typically report as factoring accounts or collection accounts not a charge off.

4. This is spoken about a lot on here and the research shows CAs are not supposed to report as a Factoring Debt. However, there was a complaint recently to Midland where they claim CRAs are advising them to use this status. Anyone else have any updated info on this?

No.

5. If the OC, shows a TL as "charged off" and "written off" doesn't this mean it was reported to the IRS and the OC is not allowed to collect the debt any longer?

Not necessarily. Only debt that is charged off in amounts of $600 or more get a 1099-c and are no longer collected by the OC. It does not stop the collection agency from trying to collect.

6. Is a "line of credit" from a credit union the same as an "Open" account as noted in the TL "Type" section on CRAs?

Don't know but would think so.

7. Is it ok for a TL status to show as both "Paid" and "Written Off" at the same time?

It should only show one status.

8. Specifically with Equifax, they have Date of Major Delinquency First Reported, does this serve as anything important in terms of credit repairing?

Yes, it tells you when the date for the SOL for suits starts running and the date for the SOL for reporting starts as well.

Any other questions from others?

Not intending to hijack OP's thread, but since my question is in the same neighborhood.......

 

1. If an OC sends a statement saying $100 is written off, not sold, transferred nor assigned, just "written off", is it illegal for a CA to try to collect on it and report it to the bureau?

 

2. OP asked about Date of Major Delinquency. In my case, the OC states 2008, the JDB states 3/2012. They both show the same date of first delinquency. Is it a violation for JDB to report date of major delinquency that far off from the OC?

[beli]

 

1. Are OCs allowed to continue reporting "CO" statuses on a monthly basis?

Yes, as long as it is a zero balance and accurate.

2. Are CAs/JDBs allowed to report "CO" for any month other than when the OC reported this same status? For instance, if an OC reports a TL as charged off in say 10/2011, then can a CA/JDB get the account in 11/2012 and then report a CO for 12/2012?

The CA cannot report it as a charge off on their trade line unless that is what they do.

3. In relation to the above question, shouldn't a CA/JDB technically only have one "CO" reported?

It is reported by the OC as charged off but CA/JDB typically report as factoring accounts or collection accounts not a charge off.

4. This is spoken about a lot on here and the research shows CAs are not supposed to report as a Factoring Debt. However, there was a complaint recently to Midland where they claim CRAs are advising them to use this status. Anyone else have any updated info on this?

No.

5. If the OC, shows a TL as "charged off" and "written off" doesn't this mean it was reported to the IRS and the OC is not allowed to collect the debt any longer?

Not necessarily. Only debt that is charged off in amounts of $600 or more get a 1099-c and are no longer collected by the OC. It does not stop the collection agency from trying to collect.

6. Is a "line of credit" from a credit union the same as an "Open" account as noted in the TL "Type" section on CRAs?

Don't know but would think so.

7. Is it ok for a TL status to show as both "Paid" and "Written Off" at the same time?

It should only show one status.

8. Specifically with Equifax, they have Date of Major Delinquency First Reported, does this serve as anything important in terms of credit repairing?

Yes, it tells you when the date for the SOL for suits starts running and the date for the SOL for reporting starts as well.

Any other questions from others?

Not intending to hijack OP's thread, but since my question is in the same neighborhood.......

 

1. If an OC sends a statement saying $100 is written off, not sold, transferred nor assigned, just "written off", is it illegal for a CA to try to collect on it and report it to the bureau? Depends.. was it part of a settlement offer?

 

2. OP asked about Date of Major Delinquency. In my case, the OC states 2008, the JDB states 3/2012. They both show the same date of first delinquency. Is it a violation for JDB to report date of major delinquency that far off from the OC?

 

Major deliquency is when you didn't bring the account current. Sounds like the JDB is reporting the date of first Major deliquency as the date it was sold/assigned to them. From my understanding, the date of major deliquency should be the same as the OC. If you never made payments to the JDB, I fail to see how the Major deliquency date is 3/12

[nachocredit1]

Thanks for the responses and other questions.

 

In regards to Question #8, I thought that SOL started after the last payment was made, specifically starting with the Date of First Delinquency?

[beli]

Thanks for the responses and other questions.

 

In regards to Question #8, I thought that SOL started after the last payment was made, specifically starting with the Date of First Delinquency?

Not sure on that.. I always thought it was when you never brought the account current that which could be Date of First Delinquency or Date of Major deliqency if you paid it then stopped paying it.

[SunnySideUp32]

 

 

 

1. Are OCs allowed to continue reporting "CO" statuses on a monthly basis?Yes, as long as it is a zero balance and accurate.

2. Are CAs/JDBs allowed to report "CO" for any month other than when the OC reported this same status? For instance, if an OC reports a TL as charged off in say 10/2011, then can a CA/JDB get the account in 11/2012 and then report a CO for 12/2012?The CA cannot report it as a charge off on their trade line unless that is what they do.

3. In relation to the above question, shouldn't a CA/JDB technically only have one "CO" reported?It is reported by the OC as charged off but CA/JDB typically report as factoring accounts or collection accounts not a charge off.

4. This is spoken about a lot on here and the research shows CAs are not supposed to report as a Factoring Debt. However, there was a complaint recently to Midland where they claim CRAs are advising them to use this status. Anyone else have any updated info on this?No.

5. If the OC, shows a TL as "charged off" and "written off" doesn't this mean it was reported to the IRS and the OC is not allowed to collect the debt any longer?Not necessarily. Only debt that is charged off in amounts of $600 or more get a 1099-c and are no longer collected by the OC. It does not stop the collection agency from trying to collect.

6. Is a "line of credit" from a credit union the same as an "Open" account as noted in the TL "Type" section on CRAs?Don't know but would think so.

7. Is it ok for a TL status to show as both "Paid" and "Written Off" at the same time?It should only show one status.

8. Specifically with Equifax, they have Date of Major Delinquency First Reported, does this serve as anything important in terms of credit repairing?Yes, it tells you when the date for the SOL for suits starts running and the date for the SOL for reporting starts as well.

Any other questions from others?

 

Not intending to hijack OP's thread, but since my question is in the same neighborhood.......

1. If an OC sends a statement saying $100 is written off, not sold, transferred nor assigned, just "written off", is it illegal for a CA to try to collect on it and report it to the bureau? Depends.. was it part of a settlement offer?

2. OP asked about Date of Major Delinquency. In my case, the OC states 2008, the JDB states 3/2012. They both show the same date of first delinquency. Is it a violation for JDB to report date of major delinquency that far off from the OC?

 

Major deliquency is when you didn't bring the account current. Sounds like the JDB is reporting the date of first Major deliquency as the date it was sold/assigned to them. From my understanding, the date of major deliquency should be the same as the OC. If you never made payments to the JDB, I fail to see how the Major deliquency date is 3/12

1. It was not part of a settlement offer. The bill was only for $100. They wrote it off.

 

2. The debt was sold to the JDB in 12/2011.