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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

Helpful to 51 out of 57 people

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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Helpful to 46 out of 55 people

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

Helpful to 20 out of 24 people

Is there a way to remove it from your credit

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30 People Helped

Remove

Helpful to 10 out of 14 people

How can I get it remove from my report 

Reply by
CJ8705

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Helpful to 13 out of 15 people

I have the same thing. How can I get that removed? I'd love to fix that the best I can!

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Change

Helpful to 1 out of 1 people

I have a loan that i was late on in mid 2010... I paid this loan off this year and paid it off early, yet it says closed-derogatory... will it fall out of derogatory status when the late payment hits 7 years?

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7 years old but still on credit

Helpful to 2 out of 3 people

Why is my debt still on my credit as derogatory and its over 7 years old when placed for collections

Reply by
Jacki402

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Helpful to 8 out of 9 people

I'd like to know the same, I felt as if after 7 years the debt is normally written off and should fall off your report.. 

So is it you get ANOTHER 7 years of negative marks after they write it off/close/collect on it?   

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