I am paying a derog that is on my credit report in exchange for having it changed to a pays as agreed/no lates. However, the creditor is trying to have me pay more than the amount listed on my credit report. Is this allowed by law? I was under the assumption that the amount on the report was the amount that would satisfy the debt. Does anyone know the answer to this and where in the FCRA it states that? Thanks
You won't find it in FCRA, but you probably will find it in the contract you signed with the OC. Even charged off accounts accrue additional interest until paid. While you don't btell what the source of bthese additional charges are, I will bet they are interest and late/over limit fees.
Credit reports are usually pretty inaccurate. I have a number of accounts reporting incorrect balances and such. The creditors usually only report the information to the CRA's every month, and sometimes even less often than that. It's quite possible that the amount on your credit report was correct at one point, but no longer is. Like Flyingifr said, the account may be accrueing interest and/or other fees. It's a pretty big step to be able to get them to agree to change the status to paid as agreed/no lates, so as long as the amount they're asking for isn't too much more than you think you owe I might be inclined to just pay it and get the account listed positively. If it is a lot more, then you might want to start with a validation letter and go from there, but if you go that route they may no longer agree to remove the negative entries from your credit reports. HTH, Brett
