Is a Charge Off reporting monthly hurting my score

[CreditGuy03]

or is it just for informational purposes.

 

I had a bank of america charged off in 2011. I recently went for a mortgage app to bring people out of hiding. Today they updated my charge off to monthly status dating back 4 years. They also updated my last payment to $60 when before it was NA. I never made a payment on this account since before it was 30 days late and it was for $25. So where are they getting this information from? Can they do this? Is this tactic they are pulling hurting my credit score?

[FreeaAndClear]

Yes, it will drop your score.

[CreditGuy03]

If that is the case then the fico algorithm is broken.

 

A charge off shouldnt hurt you continuously just because it is being reported every month. Then magically in 7 years it doesnt hurt you anymore.

 

Even a bankruptcy/foreclosure doesnt hurt you that long. This is a loophole that needs to be fixed. There has to be some law or texas finance code regulation that protects consumers against this kind of abuse

Edited March 25, 2015 by CreditGuy03

[funkiehouse]

Do you have an older copy of your credit reports where you can show the changes?

[CreditGuy03]

Do you have an older copy of your credit reports where you can show the changes?

 

 

Yea I have one lying around somewhere.

[JeffeVerde]

"I never made a payment on this account since before it was 30 days late"

 

Hunh? Do you mean you never made a payment after it was 30 days late? Dispute the date and amount of last payment. If the new report has "reaged" the history (shows a DoFD more recent than the previous report), consider filing a CFPB complaint for the reaging.

 

It's quite likely than rather than trying to clean up the reporting errors, they'll simply drop the history.

 

As far as score impact - the issue is if they've recently updated the report (check the "date last reported" field). If they're updating regularly, that hurts much more than a negative that's sat dormant for several years

[funkiehouse]

I think you have a good basis for a CFPB complaint. You need to first dispute the TL with the CRAs. It looks like you can make a case that they attempted to prevent you from obtaining credit by altering the TL; however, if it is correct info then they could just claim it was an update. Did you apply for the mortgage with BOA?

 

A CO that continues to report monthly will have more of an impact because it looks more recent. Once it's 2+ years old it has less impact FICO wise.

[CreditGuy03]

"I never made a payment on this account since before it was 30 days late"

 

Hunh? Do you mean you never made a payment after it was 30 days late? Dispute the date and amount of last payment. If the new report has "reaged" the history (shows a DoFD more recent than the previous report), consider filing a CFPB complaint for the reaging.

 

It's quite likely than rather than trying to clean up the reporting errors, they'll simply drop the history.

 

As far as score impact - the issue is if they've recently updated the report (check the "date last reported" field). If they're updating regularly, that hurts much more than a negative that's sat dormant for several years

 

 

Ok I Just checked Experian has this

 

Recent Balance :

$3,421 as of 03/18/2015

 

Date of status

06/2011

Credit limit or original amount

$3,000

High balance

$3,791

Status

Account charged off. $3,791 written off. $818 past due as of Mar 2015

Monthly payment

$0

Recent payment

$60

This is it on Transunion. Notice how the payment was 0 a few months ago

hink you have a good basis for a CFPB complaint. You need to first dispute the TL with the CRAs. It looks like you can make a case that they attempted to prevent you from obtaining credit by altering the TL; however, if it is correct info then they could just claim it was an update. Did you apply for the mortgage with BOA?

 

A CO that continues to report monthly will have more of an impact because it looks more recent. Once it's 2+ years old it has less impact FICO wise.

 

No Mortgage was through some other local bank in Texas

Edited March 25, 2015 by CreditGuy03

[funkiehouse]

Can you provide the older info that similar to what you provided above? From you old report..

Edited March 25, 2015 by funkiehouse

[CreditGuy03]

yea ive updated it in the post before yours

[funkiehouse]

Yea, I would dispute it with each CRA first and see what happens. Save your old reports for you're potential CFPB complaint. Start with a basic dispute and just say it's incorrect and you never made a payments after CO. Also dispute every part of the TL that you feel is wrong or changed since the old reports.

[funkiehouse]

Also, the numbers look funny to me but it may be because of the monitoring service. Do you're disputes by mail and CMRR since it's looks like you will need to take this to the next level.

 

Have you looked at your reports through the backdoor? If you can/do take screen shots and/or print them out so you have a physical copy.