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I recently received my annual free credit report like I do every year. Upon viewing one of the credit files I realized that there was a mistake made on one of the accounts. About 4 years ago I had a vehicle repossessed. I could never agree to any of the terms they wanted to resolve the account so eventually about a year ago, I was served papers. Before going to court, I was finally in a place where I could offer about 80 percent of what they were suing for and they accepted. There was also a co-signer on the vehicle whose name always appeared first on all billing and statements ( not sure if that matters ). I got all the proper paperwork stating the the suit had been cancelled … I had my payoff notice in writing. When I looked on my credit report though, the original company that repoe’d the vehicle has " charged off " on my report. No where on my report does it say that it’s paid off or something along those lines. I then thought that possibly they had sold it to this debt collector/attorney place that had filed the suit against me but they are no where on my credit report at all. When I called the attorney to ask them, they said that they can not change the charge off status at the auto company. Is this true? If so, can the auto company change it or do I just have to let it sit there til it eventually comes off my report? Also, the attorney place told me that they are on the co-signers credit report with the paid off … not mine. Why?

6 Comments »

1. 

   Probably you have some wrong items in your credit report. Use credit repair service to find and remove such bad stuff from your credit – buildcredit.ifastnet.com

   Comment by Brandon — March 20, 2010 @ 4:15 pm

2. 

   You can file a dispute with the reporting agency, but it is up to you to contact the debtor and get them to change it with the agency. The agency will do nothing to help.

   Comment by knowitall — March 20, 2010 @ 4:15 pm

3. 

   Sorry…the original charge-off status will stay 7 years….starting at the date of default….this cannot be changed….it has to age off your credit report naturally…..3 more years in your case.

   Comment by CatDad — March 20, 2010 @ 4:15 pm

4. 

   You defaulted with the original lender, causing the charge off status & it was sold to collections. When this happens, the original acct will say something along these lines: STATUS: C/O, (might mention account sold) Balance: $0

   That above is not an error. It IS what happened. If they sold the account to collections, they can NOT post a balance though, it must post $0.

   The fact that you settled with the collection agency & they are NOT reporting anything is a plus for you. Just be careful, because when you settled, unless you got it in writing, the collection agency can sell the remainder of your debt to another company & they will come after you for the rest and post this collection on your reports.

   Lastly, talk to your old co signer. Ask how this is reported on theirs. That would be great if it wasn’t posting in a negative light, as it was not their fault that the vehicle was re-poed

   Comment by Mo — March 20, 2010 @ 4:15 pm

5. 

   The original creditor’s charge off will remain for the balance of the 7 year reporting period. It should show 0 balance.

   You settled with a collection agency and are lucky that they didn’t report the collection which would further damage your credit. But on the downside, the settlement won’t be reflected either.

   Comment by bdancer222 — March 20, 2010 @ 4:15 pm

6. 

   There is no error. The phrase "charge off" means that you did not pay everything and they are not pursuing you for the rest. That is exactly correct.

   "Paid off" would mean that you paid 100% of what you owed. If it said that, it would be an error.

   Comment by StephenWeinstein — March 20, 2010 @ 4:15 pm

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