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I paid off my AMEX and 2 weeks later I'm getting charge off notifications on my credit report??


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I have another topic I made on here detailing my journey so far, but I felt this warranted it's own topic.

 

I'll start with the TL;DR - I got invited to the Optima program, so I paid off my balance in full, still have yet to receive a letter or optima credit application (I do have an e-mail and reference number at least), and just now my Chase Journey and Experien accounts told me I got a large derogatory mark, specifically that my AMEX was charged off.

 

The long version:

Back in 2019 I was on a payment plan with AMEX and I tried to switch bank accounts (my main one became at risk), but after removing my account, it refused to let me add a new one. I called customer service, and they were insanely rude and refused to add my new bank, saying "I violated the agreement" or some nonsense, so I just stopped paying them altogether. At the time I could barely afford it anyways. Fast forward to about a month ago, I started getting e-mails about being invited to the Optima program. I don't trust e-mails like that for anything, but I had run into some money and my wife and I are in the process of condo hunting (I don't want or need lectures about mortgages), AND people here advised me to try to get into the optima program anyways as a low hanging fruit to fixing up my credit, so I looked up AMEX's official number and called them directly. After a bunch of phone transferring, they put me in contact with someone who basically said if I pay it off, they'll show the account as being closed and paid in full and then send me the application to the optima program.

 

And like I said in the TL;DR, I have yet to receive a letter or an application, but now I'm seeing notifications that my credit report has a brand new charge off from AMEX, which first off is the exact opposite of what they said they'd do, and secondly, how is it charged off if I literally just paid it in full?

 

I apologize, but I'm basically seething at this point, and I don't know what to do. I'm absolutely going to call them tomorrow and make them explain themselves, because if I knew paying them off would add a derogatory mark to my credit, I wouldn't have done it to begin with, and I'll just ask my bank to do a charge back. I really don't care anymore, and I can use that money elsewhere. That's twice I tried to work with them in good faith, and it's twice that I seem to be the one getting shafted. There won't be a third time.

 

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2 hours ago, PS2020 said:

I'm absolutely going to call them tomorrow and politely ask them to explain why it’s reporting this way, and how to correct this error.

FTFY.

Going in hotheaded isn’t going to get you anywhere. Perhaps there’s a reasonable explanation. Perhaps not. But if you start with an attitude you’re shooting yourself in the foot. 

 

2 hours ago, PS2020 said:

I'll just ask my bank to do a charge back.

Unadvisable. You authorized the payments. It isn’t fraud. Amex didn’t take the money from your bank account without authorization. If you can’t achieve a resolution that complies with your latest agreement with Amex, there may be legal remedies that you could pursue.

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It's difficult to comment intelligently without knowing how the tradeline in question reported up until now. 

 

I have to imagine that the tradeline previously had been set to a charge-off status.  If that's the case, then the new charge-off entry isn't going to tank your score in any respect.  (Recent pdating of the tradeline may cause a bit of a negative dip, but if so, it's likely that the update from entering into the Optima program would have had the same impact.)

 

@DPB has this nailed when he suggests keeping your anger/frustration in heavy check when you follow up with Amex.  Start out by getting their explanation for the reporting update and proceed from that to devise a strategy that has a shot at improving the situation.  

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How does the account appear on PAPER reports.  Never make plans of action based upon online reports.  NEVER.

 

Additionally, I don't remember many who had to pay in full prior to getting the application.  Rather, they got into the program and were paying the balance down.  However, it has been roughly a decade since I had anyone I knew who was in the program (and we coordinated that to moot out litigation).  That being said, this could ALSO be something that takes a few months to resolve, not unlike those who try to rehab student loans or even those who repaired non-charged off cards through Rule 5000 adjustments. 

 

But you NEED the paper reports from the big 4...

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  • 2 weeks later...
On 1/21/2021 at 5:56 PM, PS2020 said:

I have another topic I made on here detailing my journey so far, but I felt this warranted it's own topic.

 

I'll start with the TL;DR - I got invited to the Optima program, so I paid off my balance in full, still have yet to receive a letter or optima credit application (I do have an e-mail and reference number at least), and just now my Chase Journey and Experien accounts told me I got a large derogatory mark, specifically that my AMEX was charged off.

 

The long version:

Back in 2019 I was on a payment plan with AMEX and I tried to switch bank accounts (my main one became at risk), but after removing my account, it refused to let me add a new one. I called customer service, and they were insanely rude and refused to add my new bank, saying "I violated the agreement" or some nonsense, so I just stopped paying them altogether. At the time I could barely afford it anyways. Fast forward to about a month ago, I started getting e-mails about being invited to the Optima program. I don't trust e-mails like that for anything, but I had run into some money and my wife and I are in the process of condo hunting (I don't want or need lectures about mortgages), AND people here advised me to try to get into the optima program anyways as a low hanging fruit to fixing up my credit, so I looked up AMEX's official number and called them directly. After a bunch of phone transferring, they put me in contact with someone who basically said if I pay it off, they'll show the account as being closed and paid in full and then send me the application to the optima program.

 

And like I said in the TL;DR, I have yet to receive a letter or an application, but now I'm seeing notifications that my credit report has a brand new charge off from AMEX, which first off is the exact opposite of what they said they'd do, and secondly, how is it charged off if I literally just paid it in full?

 

I apologize, but I'm basically seething at this point, and I don't know what to do. I'm absolutely going to call them tomorrow and make them explain themselves, because if I knew paying them off would add a derogatory mark to my credit, I wouldn't have done it to begin with, and I'll just ask my bank to do a charge back. I really don't care anymore, and I can use that money elsewhere. That's twice I tried to work with them in good faith, and it's twice that I seem to be the one getting shafted. There won't be a third time.

 

This happened to me.

Amex was monthly reporting your account all along as an charge off with a balance, which suppresses your score. When you paid it off, they wipe out your previous history but report it as a charge off with a zero balance and a memo that it was paid or settled. The original charge off date remains the same. You should get a score bump because the charge off now has a zero balance and going forward it will stop monthly reporting. Wait a few months and dispute it. Chances are it will be deleted.

Back in the BD days the whole tradeline would disappear once payment was made in full.

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