Paid Charge-off

[Nesreen]

Hi everyone!

A few years back I had some financial troubles and my checking account was closed by the bank The bank took the overdraft charges out of my savings account, so the debt was paid, but now my credit report shows the item as "Paid,Closed/Account Charged off. $ written off." Do I really have to wait until 2013 for this item to fall off my credit or is there something I can do to make it "disappear"?

Thanks in advance for your responses!

[Robert Nashville/Savannah]

Not sure I understand....

Was the "debt" your checking account balance???

Whatever created the debt or whatever type of account it was, if funds were transfered to that account from your savings account and the transfer was sufficient to bring the negative account back to a zero balance without putting your savings into a negative balance, then there was nothing to "charge off".

A "debt" can be (actually must be) charged off when it is deemed to be uncollectble (per accounting standards)...if no balance was left/owed then there was no debt to be charged off.

So, what I'm getting at here is that if the bank is reporting anything, it should simply be that the account was closed and has a zero balance/is paid; it should not be shown as "charged off" - listed that way is should have no negative impact on your scores (in fact it might raise them).

How is this being reported exactly; is it shown as a collection account?

I would consider starting the dispute process (the "1-2 punch") on the basis that the account was paid before it was closed and therefore, there was nothing to "charge off" and it should not be shown that way...any info you have to support that position would go a long way in making your dispute stick.

[will35010]

I would also get your chexsystems report to make sure you aren't listed there.

www.chexhelp.com

[Nesreen]

Hi Robert - yes, my "debt" was my checking account balance, which was brought to $0 by the balance in my savings account, which was not placed into a negative balance because of it.

It's not being shown as a collection account, it's being shown as an adverse/negative item on my report... and it's actually sort of embarrasing because the amount is so small.

Will - I tried to get my report from chexsystems and all it kept telling me was your report has been submitted. Are they supposed to mail me something?

[Robert Nashville/Savannah]

Hi Robert - yes, my "debt" was my checking account balance, which was brought to $0 by the balance in my savings account, which was not placed into a negative balance because of it.

It's not being shown as a collection account, it's being shown as an adverse/negative item on my report... and it's actually sort of embarrasing because the amount is so small.

Will - I tried to get my report from chexsystems and all it kept telling me was your report has been submitted. Are they supposed to mail me something?

I can't help you with Chexsystems - I've never tried to look at my report (I probably should).

I'm having a little trouble understanding why the bank is reporting anything on your credit reports at all; they may well have the "right" to do so but I'd keep hammering away at them anyway...since the bank didn't loose a dime on you, I seen no reason for them to leave a negative mark on your CR.

How to go about this is another matter...maybe a sit-down with your branch manager (or if it's a small "home town" bank the bank president) or a "good will" letter to someone at a high executive level (like their investor relations VP)...the other course is a more "get-in-your-face" type of approach and/or court.

Which to do depends a lot on your "style", the facts, and how important this is to you.

You could also stage a sit-down protest in front of the bank so that people know how they treat their customers...that might get their attention and make you feel better at the same time.