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Charged Off Credit Card Payments Showing as Charge Off or Failure To Pay
I had a credit card charged off when I was in college. After graduating, I received letters and phone calls asking when I would make a payment. I spoke to the actual credit card issuer to be sure that these requests were legit. I started a monthly payment plan to pay down what I still owed on the card. I had been making these payments for over a year but when I pulled my credit reports, each payment made showed as Charged Off or Failure To Pay. I spoke with the department I arranged the payment plan with and was told "Anyone who looks at your credit report and sees the consecutive black marks labeled as Charge Offs will know that those are actually payments, don't worry about it." I mentioned that each payment should be shown as "Paid" or "Paid As Agreed" but was told they wouldn't change it.

Because they wouldn't change it, I stopped my payment plan while I further investigate the matter. Since then, each month still shows as C/O or FP. The original Charge Off date shows a black mark with C/O and then blank spaces representing the months between the charge off and the beginning of the payment plan. I now have one credit report showing 52 marks (Experian), another showing 47 marks (Equifax), and the third just showing that the cards was charged off with no count of negative marks (TransUnion). The months that I did pay appear with the same marks as the months since I ended the payment plan so I don't see how someone viewing my credit report would be able to view it and know that payments were made. I spoke with the original creditor and the collections department and both mentioned that the account had NOT been moved/transferred/sold to a third party collection agency and the collections team they use is a department/division within the original creditor's company.

My question is about the multiple negative marks. Is a string of C/O or FP viewed as a string or payments by an entity reviewing/inquiring on my credit? Should there have just been one C/O mark at the original date and the payments shown as something else? Would an entity reviewing my credit see the balance at charge off and compare that to the much lower balance of present day? What is the best way to clean this up?

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The derogotary mark is the fact that it was closed and charged off.   This does not change for any payments you made and it will continue to reflect as a collection your credit report for 7 years.   WHen it is fully paid off, they can update it to show that the collection is paid which will help prospective companies of which you apply for credit.   It would be in your best interest to get the item paid off while they still own it so that it is just one blemish on your report rather than two should they decide to sell off the account which they can at any time without notice to you.  When they are collecting, they normally don't sell the account.

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