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Question By
chet8504

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Original creditor reporting incorrectly - chargeoff instead of settled in full or paid in full
I had an account with Barclays for a Visa card that I stopped paying on. I ended up getting a certified letter from the lawfirm representing them (Lloyd & McDaniel) wanting to take me to court. I worked out a single payment with them to have the lawsuit dismissed and my credit report updated. They sent me a letter that it would be considered "settled in full" and we agreed that this would be on the credit report.

I paid this on August 29th and last week no change had been made to my report. I called Barclays and complained and they said they would update. Well, the status updated from account past due to "collection/chargeoff", however, we agreed to "settled in full" as the status. Barclays is trying to skirt around things. I have a letter with this all from the lawfirm. How do I get this changed correctly?

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Thanks for any help or advice you can give!

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Question, what was the status of that account with Barclays before you received letter from that law firm? And do you still have those letters handy? Read them over carefully, pay particular attentions to the smaller prints... 'Usually" the original creditors dose not take legal action until account is in default, which would be charge-off for credit cards. Once it's charged-off then it usualy can't be charged due to their tax/accounting purposes, its usualy stated as charge-off to profit and loss, as they might already took tax write off on your account and cant be in "agreements" of any kind or taking payments on that account after that. I would venture to say it was charged off and sold to collection and that law firm isn't representing the Original Creditos, it's just a collection agency/debt buyer.

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However if I am wrong? Then simply file dispute with each Credit Bureaus, submit those letters/agreements as proof, can also file a complaint with Consumer Financial Protection Bureaus.

Reply by
chet8504

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Thanks for your response!

Barclays is the one reporting to my credit report, not the law firm.  I checked with them and they still owned it and the lawfirm was representing them.  The lawsuit even had Barclays v. (My Name).  Before I paid, the status was listed as "<<Account 120 Days Past Due Date>>" on the credit report under status.  It was updated to that on 2/10/14 per the credit report that I got.  It was only updated two days ago to "collection/chargeoff" because I called Barclays and asked why it wasn't updated yet since I paid it at the end of August.  

I do have the letter from the lawfirm staying that it would be labeled as settled in full.  Barclays keeps sending me to multiple different people and then half the time they're "out of office" or "busy" and I get their voicemails and they don't return the calls.

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Reply by
JohnnyRain127

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If it wasn't reported as charge off/collection only as past due before, then it shouldnt be reported/update as charge-off now after you made arrangements (in which they agreed to) to paid it. File a dispute with Credit Bureaus, there is ground for dispute as its reported inaccurately. And as mentioned, file a complaint with CFPB might nudge it along as well, especially you got prove in writing to back your side up.

Reply by
chet8504

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Thanks so much!  I'll dispute it with my letter and copy of the report before and after the recent edit.  Thanks for the advice on the CFPB.  I'll do that as well and see!

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