Debt Aging to determine 30-60-90 day lates

[bobsmith99]

Hi all,

 

I have a discover card that I've had for nearly 11years.

 

Last year was rough for me financially due to job stuff, and while I tried to work with Discover card prior to my job issues, they really did not give a crap.

 

I defaulted on about $1400 and entered into a payment plan with them. I was told that the payment plan would bring my account current and that I would be no longer charged interest during this repayment period, but also my credit line would be made unavailable - fair enough for me.

 

I agreed and setup an automated $55/mo payment plan with them. During the middle of this plan I was able to put an additional $1000 towards the balance due which helped reduce it quicker. I've been continuing to make schedule timely payments every 30 days.

 

Fast forward to me checking my credit report.... according to Discover, my account shows 120 days past due for 6 months in a row up until the month that I made the $1000 payment to reduce the debt faster. (each of those 6mos I made a $55 payment)

 

I contacted Discover about this. Discover's stance is this: my account was 120 days past due when I entered into my payment agreement and every month that I made a $55 payment per the agreement, it kept my account current and out of collections, but did not bring it current?? (This statement sounds like something my 7yr old would tell me trying to get out of a lie) They said the $1000 payment took care of the payments that were 120days past due and now my account is current from that date forward (6mos previous still showing 120days late)

 

The way I see it is that my account was 120 days past due, and upon entering my agreement my account would be made current (as in NO LONGER 120 days past due) and that I would be paying the $55 per month until the account was paid in full. This is how the rep explained it.

 

Discover says that while they agree with my understanding of the arrangement and that while I "technically" have been making payments every 30 days, they still do not have the authority to change whats on my credit report. Then they try to spin it into a positive statement "but the good thing is that going forward it won't show past due on your credit report anymore, so just keep up the good payments and your credit will repair itself over time."

 

Now... when I login online to view my payment history, it shows that I have made a payment every single month on the same day for the past 12 months (every 30 days as scheduled) though my credit shows 120 days past due for a portion of this time period.

 

I've requested a copy of my payment history from Discover card and plan to send copies of my payments to them every 30 days to the CRA's and ask for an adjustment.

• My understanding of bringing the account current means that it is no longer in a past due status, am I incorrect to assume this?????
• Should this documentation from Discover be proof enough for the CRA's to correct my report or will Discover card get involved with their back dating BS explanation?
• Is there a way I can make my request to the CRA's and prevent them from contacting Discover at the same time?

Edited February 19, 2013 by mattb

[bobsmith99]

anyone have any ideas on this?

[stroked89coupe]

They said that the payment plan would bring your account current. They did not say it would bring your account current right away.

 

 

To me, The way I see it, They are reporting corectly. You may have better luck with a goodwill letter or possibly even disputing directly with the CRA. If you do dispute do it in writing via certified mail.

 

 

They have to legally report correctly if they choose to report.

 

 

Just because you made a regular scheduled payment to discover on the same day every month (Even if it was on your normal payment date) does not mean your account was not past due. Thats what the problem is here. The reason it is reporting as 120 days late during a portion of this time period is because the account was past due. Chances are when it started reporting as current is when it actually was as far as discover was concerned.

 

 

Doing what you did, saved you from the account being charged off and being sent to a colection agency and possibly being sued over it at a later date. Point difference on your fico between these two scenerio's?? Ehhh....Almost impossible to say but you probably would up on the good side between the two, especially if a collection popped up.

Edited February 27, 2013 by stroked89coupe