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Kant0r

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Charged off account reported late - when does it age off my report?
I have the following scenario:
Let's assume i had a car loan in 2006. I moved out of country due to job reasons in 2009 and gave the car to close family (because they couldn't get a credit for new car, because - go figure - of bad credit) after being promised they would continue "my credit" and pay the car off. Long story short: They didn't - They fell behind on payments in early 2010 and the car was repoed in mid-2010. (Never really knew about it until it was too late, because my mail was forwarded to their address as well. Well, just another life lesson i guess).

Now i have the following entries on my Transunion credit report:

Account Details
Last Reported: Feb 28, 2017
Creditor Name: Some FCU
Account Type: Auto
Account Status: Closed
Opened Date: Sometime 2006
Closed Date: --
Limit: --
Term: 78 Months
Monthly Payment: $XXX
Responsibility: Individual Account.
Balance: $8000something
Highest Balance: --
Payment Status: Collection/Charge-Off
Worst Payment Status: --
Date of Last Payment: Jun 01, 2011
Amount Past Due: $8000something
Times 30/60/90 Days Late: 0/0/1
Remarks: Charged off account

Payment History: "Unknown" until February 2013, "CO" from then on.

And the following entries on my Equifax report:

Account Details
Last Reported: Feb 28, 2017
Creditor Name: Some FCU
Account Type: Automobile
Account Status: Closed - Derogatory
Opened Date: Sometime 2006
Closed Date: Sometime Early 2011
Limit: --
Term: 78 Months
Monthly Payment: $XXX
Responsibility: Individual
Balance: $8something
Highest Balance: $15something
Payment Status: Collection/Charge-Off
Worst Payment Status: Unknown
Date of Last Payment: Jun 07, 2011
Amount Past Due: $8something
Times 30/60/90 Days Late: 0/0/0
Remarks: Charged off as bad debt Profit and loss write-off

No Payment History reported

My question now is: The way i understand it, the 7 years and 180 days limit starts from the first late payment that led to the charge off: So... Since the first late payment and eventually the repo was in 2010, shouldn't it have been aged off my credit report already? Apparently, there was a single payment in Jun 2011 (after the account was closed, according to equifax - how is that even possible?). Equifax does not show when the Account was charged off, and Transunion started reporting the Account as charge off in 2013, three years after the car was repoed and 2 years after the account was closed. Also, the amount owed increases every month, for i don't know what reason. Interest? Can Interest be reported on a closed/charged off account?

Do you have any advise for me?
Should i go ahead and disputed those entries, since the original late payment causing all this was way back in 2010 (and doesn't even show up on Transunions payment history anymore)? Or should i just bite the bullet and wait until it ages off, starting from the reported last payment in 2011? I am tempted to just wait for it to age off by the end of late 2018, but i am worried about the charge off entries starting in 2013. What do you guys think?

Not that it would help much, but other than that, my history is spotless... Which is why this whole mess sucks even worse... :(

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This is difficult for two reasons, you cannot rely on memory as you were not here and the information shown on the reports is incomplete as your memories of this are. The other thing that makes this difficult to figure out is that we are talking seven years ago. What did your family member do is the question. Did they try to bring the account current even after the car was repo'd, but eventually failed to do so? If they didn't make any payments after the repo, then the DOFD (date of first delinquency) would have been somewhere in the beginning of 2010 and that would put the fall off date soon. However, according to both reports, the last payment was made  June 2011 and that would make the fall off time next year. It does not make sense to me that the account still would have been open so long after the repo, but it is possible that your family member was making a payment here or there and inadvertantly making the situation worse when they probably thought they were doing good trying to straighten things out. You can dispute the account, but I don't think the results would be favorable, but it could be worth a try. If your relative says that they did not make any payments after the repo, you might demand proof of this payment in 2011 and if they cannot come up with proof then they may have to delete it from your reports. You might consider speaking with a consumer lawyer for help with this as well.

Reply by
Kant0r

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Thanks for the information.

What my family member did, was to simply quit making payments without telling me. As far as i know (and as far as i've seen in the credit report), they never tried to catch up with the account.

I requested a detailed credit report from Transunion yesterday and looked into it:

According to them, the first late payment was 30 days on 10/2010, 60 days on 11/2010, then the account was somewhat caught up to 30 days on 12/2010 again and then it went downhill from there. The car was repoed on 5/2011 and no payment was made ever since, at least that's what the credit report says. I might be able to try to dispute the last payment (they are reporting the charge off any month anyway, last update was feb 2017). But also, what i found out yesterday after writing my original post, the Transunion credit report says the item in question will be removed in 8/2017. So i think the best course of action is probably to just sit still and wait it out for the next 5 months...

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