Is it legal to report an account that was paid off, payments current, as R2, R3, R4 if payments were made late on the account 5 years ago? I am having trouble understanding ratings-are ratings a reflection of the current status on the account, or the past, or both? Where does the FCRA address this? Thanks.
Keltexx, The FCRA really doesnt address this. Your question probably came about due to EQ? They are weird in this arena. The rating is supposed to be 'where you are currently', and then under the account they give a description of 'past' history.
Love, thanks for the reply. Yes- EQ reporting on an account which was paid off, but balance not updated for some months. Account has been late in the past (like 4-5 years ago). Balance updated to reflect paid, and status changed, and is now my #2 reason for score. BTW, this dropped my score 40 points! Is this a problem to pursue w/ EQ? None of the other accounts that I have paid off have updated in this way.
I think that the date of the update has something to do with it. I read in another thread that CE uses only accounts with activity within the past 6 months to calculate a score, that may be the same for EQ. Maybe EQ was not using this account in its scoring process since it had been so long since it had been updated. But when you got them to correct their errors, the new update date came within the 6 month frame, and in turn, became a hindrance to your score. Just my theory... Try getting it updated to 'perfect' or even deleted. Updated may be difficult since you have verified the late pays. But the age of the account will definitely help if you can accomplish this.
So several months ago, when I owed a balance it was current. They update, now that it is paid, it is late. That seems really strange.
