Credit Infocenter

Can an Original Creditor Change the Date of a Chargeoff?

August 21st, 2012 · No Comments · I'm suing those guys!

by Kristy Welsh

(Last Updated On: August 20, 2012)

Q. I have a question regarding a negative account on my credit report with the original creditor. For years now, the account has been listed as a charge off/write off with the original creditor. Recently, I pulled my report and notice that the account was removed from 2 of the credit bureaus, but remains on Trans Union with the status change from a charge off account to a collection account. The account also has a balance due plus date changes, which will give it an additional 7 years.

Is this legal for the original creditor to do? I have past reports that indicate/show this account as a charge off/write off. I have disputed with Trans Union, and they claim the information as verified, how is this possible?

A. An account stays on your credit report 7 years from the first missed payment when there is a consecutive series of lates. In your case, the consecutive series of delinquencies led to a charge off situation. A single instance of a late pay also stays on for 7 years.

The change of the status from charged off to collection is not illegal. However, you mentioned that the date had changed. This is a different matter. A credit report with instances of slow or late pays (30 day, 60 day, Charge Off, etc.) usually shows the date that the late will be removed from your credit report. Did this get changed, or did your credit report just show an updated date of the charge off and not the removal date?

If the date of the removal of the delinquency was changed, this is considered re-aging and is specifically prohibited by the Fair Credit Reporting Act. So what to do? It is sadly common that credit bureaus sometimes verify erroneous information. It’s up to you to be tenacious when you are in the right. It sounds like the account is old enough (older than 7 years) to be off of your credit report if it was removed by the other two bureaus.

The fastest way to get Trans Union’s attention is to take legal action. The same can be said for the original creditor. You can take one or both of them to court and sue for violations. The fine, if you are successful in your suit, is $1000. Each.

Sound extreme or daunting? Many people are successful taking legal action for erroneous reporting, and sometimes this is the only thing that works. In addition, you can do this without the help of an attorney. Our discussion boards are full of success stories and with a little studying, you should be able to figure out how to do this on your own, for free. We also sell an eBook covering this very topic that will give you step by step instructions.

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