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Old ChargeOff

Date: Fri, 02/25/2011 - 21:14
Submitted by on Fri, 02/25/2011 - 21:14
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My 3 FICO credit scores have an avg. of 760. I recently was notified by my credit monitoring service that an old finance company loan has updated an old accound on Experian as "charge off/ bad debt". For the past 7 years on my credit report, this accound has read "Paid /charge off". Im afraid that when I check my credit next month I will have a new negative mark. The statutes of limitations in Texas is 4 years for debts for old written contracts. Can they legally update a VERY old account even though it's been paid?


Charge-offs remain on the credit reports for 7 years. So, if the charge-off has crossed 7 years, then it should be deleted from your credit report. I think you'll have to send a letter to the credit bureaus regarding and inform them about it. If the 7 years are not over, then your creditor can update the account status on your credit report even if the charge-off has been paid.


Submitted by on Fri, 02/25/2011 - 22:26

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The creditor can report a charge-off at any time, provided, as with all credit reporting, that it is accurate. There is no limitation under the FCRA on how long a creditor can continue to report any accurate information to a CRA, including the continued status as a paid charge-off.
The FCRA puts the burden on the CRA, not the creditors, to determine whether their reporting can continue to appear in your CR. Charge-offs are governed by FCRA 605(a)(4) and 605(c), which prevents the CRA from continuing to include any information about the CO in any credit report they issue after 7 years plus 180-days from the date of your first default (DOFD) on the OC account.
SOL is irrelevant to credit scoring.


Submitted by Lian on Thu, 03/10/2011 - 04:30

Lian

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