About Kathleen Eads Expertise Having spent almost a decade with a Commercial Collection agency, Kathleen
can answer questions related to collections~calls, motivating debtors to pay,
skip-tracing. She now works for National Skip Trace Network (NSTN), providing
premier technological Directory Assistance to the collections (www.nstn.net)
industry via the internet.
Experience
Past/Present clients Travelers Insurance, Nationwide Insurance, CNA Insurance, USF & G, Liberty Mutual, ACS, Asst Acceptance, Pinnacle, Penncro, Superior Asset Mgmt, PRM, Collins Financial, CBE Group
Question QUESTION: Hello,
I had an outstanding balance with JCPenney after it was give to collections I paid the balance. Well we actually settled for less than what was owed, somewhere around $400, that was about Jan 2004. I looked at my credit report in 2006 and saw that it was listed as a chargeoff around the time it was settled for less than the full balance. Then after reading a few articles online I thought that I should dispute this dept and maybe by chance I could have this dept removed. Well not only was the debt not removed it now shows that the charge off is Aug 2006, meaning this will not be rmoved from my credit until 2013.. I would like to know if there is anything that I can do to correct this?
Thank you for your time,
J.S.
ANSWER: The debt will probably continue to be listed as a charge off (renewing each month), but that doesn't necessarily mean it's extended the time it will stay on your record. I would contact Transunion and ask for a copy of your report. The report they send you will include the anticipated date the entries are scheduled to be removed. Check these dates, and THEN, if you still think it's been mis-reported, dispute the entry with the bureau. Keep in mind, you may have to dispute it with each bureau who reports it!
www.transunion.com
www.equifax.com
www.experian.com
The following was copied/pasted from Transunion's website:
Credit report expiration guide
Late payments, tax liens, bankruptcies...Are you anxiously waiting for old records to be removed from your credit report? Take the initiative to check the expiration dates on records in your credit report. For example, if you discover an obsolete bankruptcy from 1992, disputing the record with your creditor can boost your credit score. Check out TrueCredit's handy expiration guide to kick your credit management into gear:
Bankruptcy – Chapter 7, 11, and 13 bankruptcies remain on your credit report for 10 years after the filing date. Chapter 13 bankruptcy records are sometimes removed after 7 years from the filing date based on the credit reporting agency policy. When you file for bankruptcy, all the accounts included should be marked as "Included in BK" and will each stay on your report for 7 years.
Charge-off accounts – If your delinquent account is charged-off, the record will stay on your credit report for 7 years.
Closed accounts – If the account has delinquencies, those marks will stay on your credit report for 7 years from the date they were reported. Positive closed accounts (with no delinquencies or late payments) can remain on your credit report for longer than 7 years.
Collection accounts – Accounts sent to collections will remain on your credit report for 7 years.This time period starts 181 days from the most recent delinquent period preceding collection activity on the account. The record will be marked as "paid collection" on your report when you pay the full balance. If you settle with the collections agency for a reduced amount be aware your record will state the account as "paid for less than the total due."
Inquiries – When a creditor or lender checks your credit it causes a "hard inquiry" to be listed on your credit report. These hard inquiries stay on your report for up to two years, and they can cause a slight drop in your credit score if there are too many of them. When your credit is checked by an employer or when you check your own credit online, you may see a harmless "soft inquiry" on your credit report. Soft inquiries do not cause a drop in your credit score and do not appear when a business checks your credit.
Judgments – Most judgments, including small claims, civil and child support, will remain on your credit report for 7 years from the filing date.
Late payments – If you are late with a payment, the 30-180 day delinquency can stay on your credit report for 7 years.
Tax Liens – City, county, state and federal tax liens are especially harmful and can remain on your credit report indefinitely. Once the lien is paid the record will remain on your credit report for 7 years from the payment date.
Hope this helps!
Kathleen Eads
---------- FOLLOW-UP ----------
QUESTION: Thank you for the answer.
I have an account with Truecredit.com I looked and under all three bureaus it has the date of removal in 2013.
I understand that the charge off remains, but it now appears as a recent delinquicy. In Aug 2006 there is a dip in my credit score because of this. Thank you again
Answer I also have an account with Truecredit, and my biggest beef with them is the disparity in reporting/charge off dates. That, coupled with the HUGE difference in scores concerns me, but every time I call, I wind up with someone in the Phillipines who has no clue what I'm talking about.
I'll give you an example. My Washington Mutual card gives me my credit score for free. The current number they have provided is nearly 20 points HIGHER than the one Transunion lists on Truecredit. (and WaMu's info is pulled from Transunion). When I called Transunion about it, they point blank admitted they report differently to creditors than they do to consumers. I never have gotten a good reason why.
Also, on truecredit, it never shows me the date it's scheduled to be removed. When I requested a copy of the report from Transunion, it has a specific month/date of removal listed on the report. The woman at True Credit indicated that sometimes, the actual report has different information than the website. I have yet to get a clear answer on why that is either.
If you feel the account has been illegally re-aged, dispute the matter with all 3 bureaus.
