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I had a credit card that went bad and was charged off in May 2018. Last month ( Jan 10th 2020 ), I paid this account off in a settlement to a collection agency that bought the account. When I paid the account I had asked how long it would take to reflect on my credit bureau reporting and was told 60 to 90 days. When I asked if there was a faster way they said to give it a week or so for processing and if not reflected on my credit bureau than do a dispute and that may speed up the process. So I did and the collection agency did there job and reported the tradeline accurately. But the original creditor who reported the charge off in May of 2018, instead of answering the dispute as a settled charge off, re-aged the charge off date to 2-1-2020 three weeks after it was paid to collection agency and it really knocked my score down because the credit bureau says it shows as a recent charge off instead of a older paid in settlement charge off. The original creditor refuses to correct the tradeline. Am I wrong in assuming that the original creditor should report this as a paid in settlement tradeline and not re-aged the date of charge off. That's in advance for any advice you can give.

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3 minutes ago, northron77 said:

instead of answering the dispute as a settled charge off, re-aged the charge off date to 2-1-2020

What exactly is the original creditor reporting? Can you post all of the credit report fields that show for this account please? 

What often happens is they "update" the account, and that update after years of being dormant is what tanks your score. 

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31 minutes ago, northron77 said:

Last month ( Jan 10th 2020 ), I paid this account off in a settlement to a collection agency that bought the account.

You say the collection agency purchased the account.    Then you stated:

32 minutes ago, northron77 said:

Am I wrong in assuming that the original creditor should report this as a paid in settlement tradeline and not re-aged the date of charge off.

The original creditor sold the account.  Notice that it reported a -0- balance.  That’s what is shown when an account is sold.  Therefore, the OC no longer has anything to do with the account.  The settlement was between you and the new owner, LVNV.  The money did not go to the OC, so the OC cannot report the account as settled.  

The only times an OC would report an account as settled would be if you settled directly with the OC or if the collection agency was collecting for the OC.  That was not the case in your situation.  LVNV was collecting for itself.

As to the new charge-off date, hopefully @Harry Seaward has some advice. 

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40 minutes ago, northron77 said:

But the original creditor who reported the charge off in May of 2018, instead of answering the dispute as a settled charge off, re-aged the charge off date to 2-1-2020 three weeks after it was paid to collection agency and it really knocked my score down because the credit bureau says it shows as a recent charge off instead of a older paid in settlement charge off.

You shot yourself in the butt on this one.  Once Credit One sold the account to LVNV they were out of the picture entirely.  ANY settlement you made with LVNV has nothing to do with the OC.  Essentially by asking them to update their tradeline you brought the reporting part current and tanked your own score.  

Your one teeny tiny hope is that because LVNV is part of the Sherman Group which owns Credit One also is a good will letter asking them to delete the OC tradeline since you settled it.  They MIGHT do it.

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47 minutes ago, northron77 said:

heres what it shows now.

Yeah, they didn't re-age it. They merely reported that as of 2/2020, it was still a charge-off account. This is a classic example of "let sleeping dogs lie".

Edit: whenever you see "ND", it means the data furnisher has stopped updating the tradeline. That's how you know it's a "sleeping dog".

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