closed/charge off with balance no collections

[ericnorm]

I was curious if anyone has had this happen also. Here is a summary

 

Bank of America

Account- Credit Card

opened- 2004

status- closed

payment status- charge off

status updated- April 2012

balance- $2,146

updated- August 2017

comments- credit line closed-consumer request-reported by subscriber

 

 

So I was wondering on all of my credit reports it shows nothing in collections. this is the only negative item on my reports. With nothing in collections does that mean BofA will try and collect themselves? I have heard nothing. I've been clearing up my credit report and have been answering ALL unknown numbers, I haven't heard anything. I had some issues go down around 2012, I've paid a couple collections, I don't recall if they were one. Basically why wouldn't that balance be in collections? Hoping someone can give me a bit of insight, the above information came off my monthly experian site. Thanks to all ahead for reading!

 

 

[jack1212]

What's the DOFD?

[ericnorm]

shows on my credit report calendar october 2011 was 30 days late, january 2012 120 days late and then april 2012 fp (failed to pay)

that's what kind of throwing me here, I have nothing in collections on any reports, even a *hey congrats! your out of debt! little notification 2 months ago when i paid on a collection i had, thought was my last? not sure? thought i'd seek helpful knowledge. It's the only negative item on my experian report.

[ericnorm]

I'm not sure exactly what it all means, on my other "free" credit reporting sites like credit karma, wallet hub (sites that use vanguard scoring) it shows a list of my accounts. I only have one open credit card account and in good standing, just started another unsecured capital one card to help rebuild my credit score (609 fico 662 vanguard) and on the list of all other accounts home loans, auto, credit card etc... it shows closed in green next to all of them with a balance of $0 except Bank of America shows closed $2,146

nothing in collections, even the little notes, "hey congrats! nothing in collections and 100% pay record!" so I was just curious if anyone knows exactly why there's a balance on a closed account with zero collections from almost 6 years ago?

[dvd]

I was curious if anyone has had this happen also. Here is a summary

 

Bank of America

Account- Credit Card

opened- 2004

status- closed

payment status- charge off

status updated- April 2012

balance- $2,146

updated- August 2017

comments- credit line closed-consumer request-reported by subscriber

 

 

So I was wondering on all of my credit reports it shows nothing in collections. this is the only negative item on my reports. With nothing in collections does that mean BofA will try and collect themselves? I have heard nothing. I've been clearing up my credit report and have been answering ALL unknown numbers, I haven't heard anything. I had some issues go down around 2012, I've paid a couple collections, I don't recall if they were one. Basically why wouldn't that balance be in collections? Hoping someone can give me a bit of insight, the above information came off my monthly experian site. Thanks to all ahead for reading!

 

 

B of A still owns the debt so there would not be a collection item on your report. A collection would only show up if B of A sold the debt.

 

 

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[JeffeVerde]

 

B of A still owns the debt so there would not be a collection item on your report. A collection would only show up if B of A sold the debt.

 

 

Sent from my iPad using Tapatalk

 

 

Not necessarily. A *JDB* would only be on his report if the OC sold the debt. But the OC could own the debt *and* farm it out to a 3rd party for collections, resulting in the OC plus a CA on his report.

[dvd]

 

 

B of A still owns the debt so there would not be a collection item on your report. A collection would only show up if B of A sold the debt.

 

 

Sent from my iPad using Tapatalk

 

 

Not necessarily. A *JDB* would only be on his report if the OC sold the debt. But the OC could own the debt *and* farm it out to a 3rd party for collections, resulting in the OC plus a CA on his report.

 

 

From my experience, when the original creditor/bank still owns the debt and farms it out to a collection agency, it does not get reported as a collection by the contracting agency. That would be double reporting.

[JeffeVerde]

 

 

 

B of A still owns the debt so there would not be a collection item on your report. A collection would only show up if B of A sold the debt.

 

 

Sent from my iPad using Tapatalk

 

 

Not necessarily. A *JDB* would only be on his report if the OC sold the debt. But the OC could own the debt *and* farm it out to a 3rd party for collections, resulting in the OC plus a CA on his report.

 

 

From my experience, when the original creditor/bank still owns the debt and farms it out to a collection agency, it does not get reported as a collection by the contracting agency. That would be double reporting.

 

 

The collection effort is separate from the OC's CO entry. Only the account owner can report a balance, but a CA can report the account as being in collections. It's possible for a CO to result in three concurrent CR entries, if the OC has sold the account -

• the OC's CO with a $0 balance
• the JDB as a CO account with a balance
• a CA collecting on behalf of the JDB

[JeffeVerde]

Ericnorm - what open CC's do you have today? Towards improving your credit profile, an AU account from a family member or friend boosts your FICO's, which makes it easier for you to then get your own accounts. The primary account holder can do this without even giving you a card -- they simply make you an AU and they hang on to (or destroy) the card. As long as they keep the account in good standing, it boosts your scores.

 

If you have less than 5 open accounts, a secured card helps you get to that 5-open-accounts milestone for maximum FICO benefit. If you have the savings to park in a secured account, putting several thousands dollars in a secured account will jump start your approvals when you start applying for "normal" accounts. Lenders tend to look at your other accounts for a guideline when determining what CL to offer you.

[Bluesie58]

JeffVerde is correct.

 

The FCRA references "accounts placed for collection".

[ericnorm]

Actually I was just talking to my wife about throwing me on her card as an AU, when I went through my debacle back in 2012 she wasn't on any of my reports via homeloan (short sale), so her credit is high 700's. That's why we put my Jeep in her name, although I pay the payments, we didn't even try to use my credit a couple years ago.

To answer your original question, I have one capital one card (unsecured) at the moment (June 2017), not a high limit, only $300, I use it for a few things and pay it a few days before the due date. I also started a self lender loan to help build my credit back up.

So have my capital one card, plus become an AU on my wifes card, also look into a secured card? I can do that, I'm not planning on going back into stomach turning debt again by any means but I do need my credit to bounce back.

any thoughts on that BofA $2,146 on my report? no collections or phone calls. should i call them and inquire or am I kicking the hornets nest? haha

thanks for all the input this has been super helpful!!

[ericnorm]

when becoming an AU on my wifes account will her, "balance to limit ratio" make a huge difference in my situation, as long as she keeps making her payments on time? Her cards aren't maxed out by any means but she's maybe around 50% utilization. Since i'm mainly just trying to raise my score from low 600's I'm thinking her positive payments could help, even though she's above 30% utilization. Any thoughts?

[JeffeVerde]

when becoming an AU on my wifes account will her, "balance to limit ratio" make a huge difference in my situation, as long as she keeps making her payments on time? Her cards aren't maxed out by any means but she's maybe around 50% utilization. Since i'm mainly just trying to raise my score from low 600's I'm thinking her positive payments could help, even though she's above 30% utilization. Any thoughts?

 

AU accounts are calculated in your FICO score the same as your primary accounts -- good and bad. A nice thing about an AU account is that you can have the entire account deleted from your reports. You could have her add you as an AU, and if at some point you find it's hurting more than helping, just have your wife contact the bank to remove you as an AU, then dispute the account with the CRA's with the reason "not my responsibility".

 

Is DW's card another case of a low limit account, if she's using and paying 50% of the CL every month, shifting her payment so she pays the balance before the statement date will help her (and your, as an AU) FICO tremendously. 50% utilization is a big ding in the FICO scoring. If she's carrying a balance month to month, look at a balance transfer to another card(s) to bring down the individual utilization. In either case, read the threads here about requesting CLI's, and try to get her CL's raised, so that her normal card use doesn't use more than 10-20% of her CL's - both individually and combined.

 

If it's the later,

[JeffeVerde]

<snip>

any thoughts on that BofA $2,146 on my report? no collections or phone calls. should i call them and inquire or am I kicking the hornets nest? haha

thanks for all the input this has been super helpful!!

 

At this point, you're outside of "SOL" -- which means you don't have to worry about being sued. It's unlikely that BofA will do a "Goodwill" deletion - and contacting them runs the risk that they update the account with the CRA's (right now, they haven't updated the CRA's in 5 years, and a "stale" derogatory item has much less FICO impact than a 5 year old item that was updated last month).

 

I'd suggest waiting it out. But find out exactly when your DoFD was - and confirm it against your own records, if you can. What's reported to the CRA's is often many months after the actual date. 5 months before the DoFD, starting calling TU for an early delete (don't say "early delete" - tell the agent you think the item is too old to report). Call EX at 3 months before the DoFD. And Call EQ every few weeks starting with the TU call. EQ's official policy is to not delete early. But sometimes you'll get a helpful CSR on the phone, and they have the ability to delete early at their discretion.

[ericnorm]

i really appreciate all this information, i just have one question on the BofA account. on my experian report it states

 

status updated- April 1, 2012

balance updated- Aug 15, 2017

 

 

balance has been $2,146 since 2012 and when i saw my actual report it shows BofA is updating the balance every month to the bureaus, when i looked closer it also stated something along the lines of, "expected removal July 2018"

 

so hopefully that little insight helps and you can tell me if i gave you correct information and if BofA is still considered an, "old" debt since the status was updated 2012 but the balance has been updated monthly. haha I hope that made sense!

 

thanks again for all this help, i've been trying to figure this all out on my own for awhile now, to no avail! much appreciated! seriously.

[mikenola]

I was curious if anyone has had this happen also. Here is a summary

 

Bank of America

Account- Credit Card

opened- 2004

status- closed

payment status- charge off

status updated- April 2012

balance- $2,146

updated- August 2017

comments- credit line closed-consumer request-reported by subscriber

 

 

So I was wondering on all of my credit reports it shows nothing in collections. this is the only negative item on my reports. With nothing in collections does that mean BofA will try and collect themselves? I have heard nothing. I've been clearing up my credit report and have been answering ALL unknown numbers, I haven't heard anything. I had some issues go down around 2012, I've paid a couple collections, I don't recall if they were one. Basically why wouldn't that balance be in collections? Hoping someone can give me a bit of insight, the above information came off my monthly experian site. Thanks to all ahead for reading!

 

 

For whatever this is worth to you,

 

1) find out for sure what the DoFD is and then check with your state AG and verify your state SOL on CC debt, it is different in every state.

2) if out of SOL but under the 7 years FCRA reporting you have a decision to make. Wait and see if it drops, or contact them and ask for PFD or GW.

3) Remember two things, poking the bear can be a bad thing but hiding and watching leaves open them still selling the debt to a JDB who can then put it on your credit (even past SOL) just to try and pressure you to pay.

4) if debt is in SOL or close to FCRA reporting limit be wary, under certain circumstances you can mistakenly cause the debt to become "current" and you don't want that.

 

good luck, let us know what happens

[Bluesie58]

 

I was curious if anyone has had this happen also. Here is a summary

 

Bank of America

Account- Credit Card

opened- 2004

status- closed

payment status- charge off

status updated- April 2012

balance- $2,146

updated- August 2017

comments- credit line closed-consumer request-reported by subscriber

 

 

So I was wondering on all of my credit reports it shows nothing in collections. this is the only negative item on my reports. With nothing in collections does that mean BofA will try and collect themselves? I have heard nothing. I've been clearing up my credit report and have been answering ALL unknown numbers, I haven't heard anything. I had some issues go down around 2012, I've paid a couple collections, I don't recall if they were one. Basically why wouldn't that balance be in collections? Hoping someone can give me a bit of insight, the above information came off my monthly experian site. Thanks to all ahead for reading!

 

 

For whatever this is worth to you,

 

1) find out for sure what the DoFD is and then check with your state AG and verify your state SOL on CC debt, it is different in every state.

2) if out of SOL but under the 7 years FCRA reporting you have a decision to make. Wait and see if it drops, or contact them and ask for PFD or GW.

3) Remember two things, poking the bear can be a bad thing but hiding and watching leaves open them still selling the debt to a JDB who can then put it on your credit (even past SOL) just to try and pressure you to pay.

4) if debt is in SOL or close to FCRA reporting limit be wary, under certain circumstances you can mistakenly cause the debt to become "current" and you don't want that.

 

good luck, let us know what happens

 

 

A charged-off account cannot be brought back to a current status.

[Not Given]

Some cards I IIB sat on my reports with $0 balance for years, some seemed to update every month.

[JeffeVerde]

i really appreciate all this information, i just have one question on the BofA account. on my experian report it states

 

status updated- April 1, 2012

balance updated- Aug 15, 2017

 

 

balance has been $2,146 since 2012 and when i saw my actual report it shows BofA is updating the balance every month to the bureaus, when i looked closer it also stated something along the lines of, "expected removal July 2018"

 

so hopefully that little insight helps and you can tell me if i gave you correct information and if BofA is still considered an, "old" debt since the status was updated 2012 but the balance has been updated monthly. haha I hope that made sense!

 

thanks again for all this help, i've been trying to figure this all out on my own for awhile now, to no avail! much appreciated! seriously.

 

The debt owner can update the CRA's monthly, if they choose. Refreshing the entry monthly ensures that it continues to cause maximum FICO damage. Creditors know this and do it to encourage you to pay up.

[ericnorm]

That makes total sense! haha it's just interesting to me that they haven't tried contacting me to cough up any funds in years. Now, like some have said, should I poke the bear? Or keep using my unsecured CC(pay on time), become an AU on my wifes and see how it goes!

 

Thanks for all the insight, to everyone! This is a nasty business trying to right mistakes and misfortunes from the past. I'm not looking to get into, "stomach churning" debt again by any means! But I need my score up, not like I'm going to receive a loan with a low FICO.

 

 

Oct 2011 is the first DOFD on my experian report, 30 days late, then 60 days late, then 90 days, then 120 days late until April 2012 when it states FP (failed to pay) That's when the CCC reported to the CRA status updated April 2012..charge off/closed... and then a monthly update, all the way until August 15 2017 *balance updated* just to HOSE my FICO haha

In my state of Oregon the SOL is 6 years. On my experian report under the BofA statement it says estimated date of removel july 2018

what to do, what to do???

[socalrob]

I settled a BofA for less than balance back in 2011/2012. I'm up to 740s across all 3 now. Really want to app for the Merrill phone only bonus but scared I'll get denied due to the settled account due to come off report in late 2018.

 

 

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[JeffeVerde]

That makes total sense! haha it's just interesting to me that they haven't tried contacting me to cough up any funds in years. Now, like some have said, should I poke the bear? Or keep using my unsecured CC(pay on time), become an AU on my wifes and see how it goes!

 

Thanks for all the insight, to everyone! This is a nasty business trying to right mistakes and misfortunes from the past. I'm not looking to get into, "stomach churning" debt again by any means! But I need my score up, not like I'm going to receive a loan with a low FICO.

 

 

Oct 2011 is the first DOFD on my experian report, 30 days late, then 60 days late, then 90 days, then 120 days late until April 2012 when it states FP (failed to pay) That's when the CCC reported to the CRA status updated April 2012..charge off/closed... and then a monthly update, all the way until August 15 2017 *balance updated* just to HOSE my FICO haha

In my state of Oregon the SOL is 6 years. On my experian report under the BofA statement it says estimated date of removel july 2018

what to do, what to do???

 

Ohhh-- you're in one of those states with a long SOL. Keep your head down until November. Once you're past 6 years from the DoFD, you can cite SOL as an affirmative defense, if BofA or a JDB were to sue you (and it would be unlikely for anyone to try to sue, because of that). Once you're beyond your State's SOL, you could try disputing with the CRA's. You might get lucky and have BofA not bother to respond to the dispute inquiry, in which case, the account gets deleted. If BofA responds, and the first dispute is confirmed, I don't think I'd waste any effort on further disputes. With the OC still owning the debt, it's unlikely you're going to find a gap to leverage. Worst case, you wait it out. TU will early-delete in May of next year, EX in July, and EQ somewhere between April and October.

[ericnorm]

I'm wondering also if the horror stories are true where if I made a payment/paid in full that the account would linger for another 7 years, starting, "the time clock" again?

 

also does anyone know if the concept of, "starting the clock over" is true? where your DOFD is lets say 2012, you make a partial payment in 2014, but just one payment and don't touch it. Would that account come off your report in 2018 or since you had activity in 2014 would that become the new, "countdown" date and now it'll wait another 2 years? I've just read both answers where it's always based off your DOFD and have also read that since you paid the account, even as low as one dollar, that can become your new start date for coming off your report. I figure this could be the best place to find an answer, figure someone on here has had something like that happen!

[Bluesie58]

I'm wondering also if the horror stories are true where if I made a payment/paid in full that the account would linger for another 7 years, starting, "the time clock" again?

 

also does anyone know if the concept of, "starting the clock over" is true? where your DOFD is lets say 2012, you make a partial payment in 2014, but just one payment and don't touch it. Would that account come off your report in 2018 or since you had activity in 2014 would that become the new, "countdown" date and now it'll wait another 2 years? I've just read both answers where it's always based off your DOFD and have also read that since you paid the account, even as low as one dollar, that can become your new start date for coming off your report. I figure this could be the best place to find an answer, figure someone on here has had something like that happen!

 

1681c(a)(4) of the FCRA says that a credit report cannot contain items that have been placed for collection or charged off for more than 7 years. The DOFD determines the date a negative entry falls off. If an account has been charged off, it can't be made current again, so a payment (whether partial or in full) will not change the DOFD.

[JeffeVerde]

 

I'm wondering also if the horror stories are true where if I made a payment/paid in full that the account would linger for another 7 years, starting, "the time clock" again?

 

also does anyone know if the concept of, "starting the clock over" is true? where your DOFD is lets say 2012, you make a partial payment in 2014, but just one payment and don't touch it. Would that account come off your report in 2018 or since you had activity in 2014 would that become the new, "countdown" date and now it'll wait another 2 years? I've just read both answers where it's always based off your DOFD and have also read that since you paid the account, even as low as one dollar, that can become your new start date for coming off your report. I figure this could be the best place to find an answer, figure someone on here has had something like that happen!

 

1681c(a)(4) of the FCRA says that a credit report cannot contain items that have been placed for collection or charged off for more than 7 years. The DOFD determines the date a negative entry falls off. If an account has been charged off, it can't be made current again, so a payment (whether partial or in full) will not change the DOFD.

 

 

CRA reporting is controlled by the FCRA and is based on DoFD - which is explicitly defined as the date on which the account first became late and was never made current again. So say you're 90 days late, you make a normal monthly payment two months in a row, and then never pay again. Because you were 3 months behind when you made the two regular payments, the account was never brought current, and DoFD does not change. Compare that two - you're 60 days late, and make a double payment, get 60 days late again, and make a double payment again. In that scenario, the DoFD changes with each of those double payments, because they make the account current.

 

A separate issue is statute of limitations, as it regards time-barred dents and a creditor's ability to sue the borrower. Making a payment to a debt collector can reset SOL. This is independent of the 7-year reporting limits.