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A question on my Experian Report


drb1123
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The entry reads:

Account Name: CBUSASEARS

Account Number: XXXX

Account Type: Revolving Charge Account

Type of Business: Complete Department Stores

Terms: Revolving

Account Status: Closed

Balance: $0

Balance Date: Jan 25, 2005

High Balance: Not reported

Credit Limit/Orig. Amt.: $1,520

Past Due: $0

Remarks: Transferred to another lender or claim purchased

Payment Status: Account transferred to another office

On the bottom it starts with 2004 with a CO in February and then it has OK all the way through January 2005.

My question is: The last activity in this account was in 2001. So why are they reporting it with "OK"? Are they re-aging the account? If they are, what should I do about it?

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I've been trying to get a handle on the whole "charge off" thing for awhile now. From what I've been able to figure out, the term "charge off" really is nothing more than an accounting blip. The OC still owns the account, but for tax purposes they may (or may not) claim it as uncollectable and therefore they take it as a charge off against income. As long as its still listed as a CO, they may (or may not) still charge interest and fees to you. So, technically, as long as they still own it, they can list it as OK...closed, but OK.

On the other hand, the "sold / transferred to another lender" is when they must set the balance to $0 and STOP charging interest and fees. The wording "transferred to another office" is interesting, and I'm not quite sure if that means the same company still owns it.

None of that changes the DOLA as far as the SOL is concerned. Its still measured from the date on which the account first went delinquent.

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Not really true. An account listed as OK is listed as "paid as agreed" which is different from CO. If a company lists as CO and then OK the next month and then CO the month after that, FICO treats this as a NEW charge off for score purposes and this tanks your score. A listing like that is certainly not "complete and accurate". That is the point I used to file against Verizon.

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