Removing an item from the credit report

[dncr]

What is the name of your state? CA

My husband had an old bad credit card debt that he'd defalted on during a bad point in his life. Last summer we settled it and paid it off, but it's still showing a balance and "charge off" on the credit report. He called them and they said that they got rid of that debt a long time ago and are no longer reporting it, and didn't want to listen when he told them it's still there. They said there's nothing they can do about it. Do we have any recourse? We're trying to buy a house this year so need to get our reports cleaned up.

 

[TigerD]

What is the name of your state? CA

My husband had an old bad credit card debt that he'd defalted on during a bad point in his life. Last summer we settled it and paid it off, but it's still showing on the credit report. He called them and they said that they got rid of that debt a long time ago and are no longer reporting it, and didn't want to listen when he told them it's still there. They said there's nothing they can do about it. Do we have any recourse? We're trying to buy a house this year so need to get our reports cleaned up.

90 percent of your post does nothing but confuse the issue and will lead to bad advice from somebody here.

1. When did he default on the credit card?
2. Add 7 years plus 180 days to that date.
3. Check calendar --
a: if the new date is prior to today's date, write the credit bureau and dispute the entry.
b: else, wait until new date is reached, repeat.

DC

 

[ForFun]

You should dispute it with the 3 major credit bureaus. They will then contact the creditor to validate the debt. When the creditor explains that the debt was satisfied, your report will be changed.

However, the fact that your husband defaulted in the first place will still be listed on the credit report. What does it say now? "Charge-off"? It will probably be changed to "Charge-off Settled", or something like that. If the creditor is really nice, it may be changed to "Paid as Agreed," but don't count on it.

 

[dncr]

Sorry, what I meant was that they are still showing a balance owed. It says "charge off." So, it's not an issue of it falling off, it's an issue of it showing a balance when there isn't one.

Thanks for the advice...we'll take it up with the reporting agencies.

 

[fairisfair]

Sorry, what I meant was that they are still showing a balance owed. It says "charge off." So, it's not an issue of it falling off, it's an issue of it showing a balance when there isn't one.

Thanks for the advice...we'll take it up with the reporting agencies.

Did you pay the entire balance or as you said "settle it"

 

[dncr]

Did you pay the entire balance or as you said "settle it"

We agreed on a settlement for less than the amount and paid the amount they agreed to. They are not disputing what we paid.

 

[fairisfair]

We agreed on a settlement for less than the amount and paid the amount they agreed to. They are not disputing what we paid.

and that is why it is showing as a charge off. because you did not pay the debt in full.

 

[dncr]

and that is why it is showing as a charge off. because you did not pay the debt in full.

Wrong. We have other debts where we settled and they say something like "Settlement accepted on this account" with $0 as the balance. They can't report you as owing a balance if you no longer owe them anything.

 

[fairisfair]

Wrong. We have other debts where we settled and they say something like "Settlement accepted on this account" with $0 as the balance. They can't report you as owing a balance if you no longer owe them anything.

Really, I suggest you do a little research. They are not required to change the coding to "settlement accepted" that is part of the negotiating process and you ceased to be in a position to negotiate as soon as you paid. They are not reporting you as owing a balance.

 

[dncr]

Really, I suggest you do a little research. They are not required to change the coding to "settlement accepted" that is part of the negotiating process and you ceased to be in a position to negotiate as soon as you paid. They are not reporting you as owing a balance.

You should know what you're talking about. They are reporting a balance. They may not have to change their wording, but they are incorrectly reporting a balance owed. They agreed to consider the debt satisfied when we made the settlement. That's the whole point of a settlement.

 

[Ladynred]

IF the tradeline is incorrect, DISPUTE IT WITH THE CREDIT BUREAUS FIRST !!
Dispute it, IN WRITING, as the FCRA allows you too. If you do not dispute with the CRA's you lose your private right of action against the creditor per the FACT Act (amendment to FCRA).
If it comes back from the CRA's as 'verifed', then you dispute with the creditor directly, just as you did with the CRA. If they refuse to correct incorrect reporting, SUE THEM.

It is definitely common practice to note a settled debt as 'settle for less than full amount', that notation is added/changed every day. They ARE obligated to report ACCURATE information.

However, if you settled with a 3rd party who BOUGHT the debt from the orginal creditor, then THEY are the ones to report the settlement.

They can report a charge-off with a balance owed if they did NOT sell the debt to a 3rd party, charge-off is just an accounting function. If it was, in fact, SOLD OR TRANSFERRED, then it must report as a 0 balance.

Use the dispute process the right way. If that fails, drag them to court !

 

[dncr]

Cool, thanks Ladynred!