50 Point loss for paying?????

Discussion in 'Credit Talk' started by Scoreguy, Aug 19, 2003.

  1. Scoreguy

    Scoreguy Well-Known Member

    I just looked at my CR and the only difference is, I paid a chargeoff and my score went down 50 points???

    Somebody, Please tell me why? What can I do?

    I thought if you pay something, you should get credited for it. Maybee it's better for Fico, if we don't pay our bills.
  2. Scoreguy

    Scoreguy Well-Known Member

    I have a feeling that the Last activity on the account was 2 1/2 years ago and now since I paid it it is 1 month ago. Still makes no sense, so you shouldn't pay any chargeoff's, it will be bad for your Fico score.
  3. Scoreguy

    Scoreguy Well-Known Member

    Just to let everybody know, I paid the Collection agency not the Original Creditor.
  4. Scoreguy

    Scoreguy Well-Known Member

  5. thickman66

    thickman66 Well-Known Member

    Did they change the date of last activity? Maybe when you paid it the updated the date to last month.
  6. Scoreguy

    Scoreguy Well-Known Member

    The status date on Credit Expert is this month. Is that the Date of last activity?
  7. Butch

    Butch Well-Known Member

    If you called the manager of the CA and told him all this, and asked if he would just delete the TL, what do you think would happen? Afterall I tried to "do the right thing".

    (they love that)

  8. jlynn

    jlynn Well-Known Member

    Somewhere there's an FTC Opinion letter that says paying after chargeoff does not change the Date of Last Activity.
  9. Scoreguy

    Scoreguy Well-Known Member

    I've tried looking everywhere and can't find that letter. Can anybody try to locate it for me.

    I have 2 more accounts that are charged off with collection agencys, so what should I do? If I pay it, it will be worse for for my Fico score?

    Any help is much appreicated.
  10. jlynn

    jlynn Well-Known Member

    Here's the letter:

    2. Is the reporting period extended if (A) the original creditor sells or transfers the account to another creditor, (B) the consumer responds to post-chargeoff collection efforts by making a payment on the debt, or (C) the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs?

    No. In enacting the new provisions discussed above, Congress intended to establish a date certain -- 180 days after the start of the delinquency that led to the chargeoff -- to begin the obsolescence period. It did so to correct the often lengthy extension of the period that resulted from later events under the original FCRA. Enclosed are two staff opinion letters (Kosmerl, 06/04/99; Johnson, 08/31/98) that discuss the impact of these provisions, and the legislative history relating to their enactment, in more detail. Because the commencement of the seven year period is now described with some precision by the statute, it is our opinion that none of the subsequent events you listed -- sale of the charged off account by the creditor, or a payment on or dispute about the account by the consumer -- changes the allowable period for a CRA to report a chargeoff.

    Next time, unless you are buying a house, and just need -0- balances to close, I would attempt payment for deletion.

    Good luck!
  11. Scoreguy

    Scoreguy Well-Known Member

    Would I attempt deletion from the collection agency or the original creditor that is on my credit report? The original creditor is Firest Premier Bank, I doubt they would delete it. What do you think I should do now? Thnak you for finding that letter.
  12. Scoreguy

    Scoreguy Well-Known Member

  13. jlynn

    jlynn Well-Known Member

    On Experian, there is usually a comment "scheduled to remain until xx/20xx. What is that date? 7 years from when you paid it, or 7 years from whenever it was charged off?

    You negotiate payment for deletion with whomever is reporting on your credit report.

    Another thing, and I can't remember, somebody else may chime in...
  14. Butch

    Butch Well-Known Member

    Yeow !!! LOL

    You guy's are really diggin into a complicated one. :)

    A pmt. on an account is not "supposed" to move the reporting date forward, but it often does anyway.

    The CRA's STILL use DLA from which to messure the 7 yr. reporting period, as they did under the old system. So few people are even aware of this stuff, and even then, don't push the issue when they do know, the CRA's decided not to spend all that money to update their systems. At least that's my guess as to why.

    Anyway, here's one hell-of-a conversation about this issue that really opened my eyes.

    Well the search is down. It was called "EQ and the 7 year reporting period", or something like that.

    I'll try later.
  15. Scoreguy

    Scoreguy Well-Known Member


    On my experian report it shows a status and payment date of this month. When I called the told me the correct dola. What do you think I should do? Should the payment date be this month? I just can't believe I lost that many points for paying a chargeoff with a collection agency.

    Thank you in advance for your help.
  16. Butch

    Butch Well-Known Member

    Jlynn asked you about the "This item is scheduled to remain until xx/xx/xxxx".

    What does that say?


    Oh - and when do you think is the date it FIRST appeared?
  17. Scoreguy

    Scoreguy Well-Known Member

    It doesn't say anything about when it comes off. Very fishy. I called and they told me in 4 1/2 years it will come off.

    I paid it last month. It says last payment was this month and date of status is this month. Not sure what date of status is.

  18. Butch

    Butch Well-Known Member

    Re: Re: 50 Point loss for paying?????

  19. Scoreguy

    Scoreguy Well-Known Member

    Re: Re: 50 Point loss for paying?????

  20. tmitchell

    tmitchell Well-Known Member

    Re: Re: 50 Point loss for paying?????

    I'm pretty sure status date is the date the acct was last updated on the report. It's definitely not the same as DOLA.

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