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Question By
Kay1010

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what does it mean if an account is closed but derogatory?
I have an old bank account that says it's closed but derogatory. In the notes it says "Closed off as bad debt and loss write off." does that mean i still need to pay that balance?

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No, it means they wrote off

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What they you owed as a loss. They are no longer trying to collect it and took a tax credit for it. So they can't collect it anymore. 

The account is closed. But they are using that to "punish" you for not paying. That Derog will stay on your credit report for 7 years as a warning to other creditors that you may not pay your bills.  Depending on what other credit you have and the length of your history and how old that entry is, it may or may not have much of an effect on your ability to get credit. 

Good luck 

Reply by
Jackula024

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Thank you for this information, I just had a quick question that maybe you could help me with. You stated "They are no longer trying to collect it and took a tax credit for it. So they can't collect it anymore.".... my questions are: 

1. Is it normal to still be receiving calls from the collection agency trying to collect on this account even though they claimed "closed - derogatory"? Also, they are claiming my account is still gaining interest. Could they come after me for this? 

2. Would it help my credit if i did pay of the account that was claim "closed - derogatory"?

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How to remove it

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Is there a way to remove it from your credit

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Remove

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How can I get it remove from my report 

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