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CO tradeline after settlement


peter24
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Ok first off I want to thank anyone for any advice they could give me.

I got a settlement with Providian. Got the offer in writing listed as, "settled in full". I sent my final payment (6 payments total) and they updated my credit report. Now Experian is reporting a CO (charge off), the other two do not list anything. Is this right? Can I dispute this CO, I thought the settled in full prevented this?

They updated my credit report as follows:

Remarks:

[TransUnion] Settled - less than full balance

[Experian] Account legally paid in full for lass than the full balance.

Account legally paid in full for less than the full balance.

[Equifax] Settlement accepted on this account

Closed or paid account/zero balance

This dropped my Experian credit score from 640 to 580. (Which really is depressing as 8 months ago it was 560 and I got it up to 640 until this CO was reported.) The other two scores did not move at all.

Any help would be greatly appreciated.

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the tradeline reads just CO with a black mark. I have not gotten my reports from the bureaus yet so I am going off of the truecredit.com tradeline.

My score today was 592 up from 580 yesterday. This really confuses me.

Can I dispute this CO with the credit bureaus? Or should I go straight to Providian?

I settled this account before it was charged off. And since I was doing payments for 6 months I had 6 months of paying on time on my credit report. I want to fight this as they specifically told me it would not be listed as a charge off and I have the taped conversation to prove it.

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"...I settled this account before it was charged off..."

Settling debts is an honorable thing to do, but the notation "settled" is derogatory. This indicates to (other, future) creditors that your account went into default and the OC had to wait for payment. "Settled for less than full balance" means the OC didn't even get the total owed (even if the "total" was jacked up with interest and fees).

"Charge off" is a shortened version of Charged off to profit and loss. This is an accounting procedure that creditors must do on all defaulted accounts, by gov't tax regulations. The timing, in your case, is immaterial.

"...Is this right..."

It is correct reporting of what happened. From what you posted, it appears that Providian kept their agreement with you, although you may not have understood the implications.

"...since I was doing payments for 6 months I had 6 months of paying on time..."

Payments made after default provide you no break/leeway/positives. When an account goes into default (yours did, or no settlement would have been offered or accepted) the balance is due and payable immediately. A creditor may accept payments, at their discretion, but they are not under any obligation to do so.

"...they specifically told me it would not be listed as a charge off..."

This could be chalked up to the ignorance of the Rep you communicated with. It doesn't really give you a leg to stand on in your battle. You could go round and round and may achieve getting the CO notation removed. You will still be left with a derogatory TL (Settled) with a recent update. THAT is what tanked your score.

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