Got UNPAID charge-offs? You can bet your a*s that you'll find these 2 errors on the credit report. Here's what you're gunna do:
Not ALL accounts report these errors and not ALL charge-offs report them, BUT all UNPAID charge-offs will report at least 1 of these 2 errors and I show you exactly how to handle them in this video.
Take a look at your unpaid charge-offs right now.
If you're looking at an IdentityIQ or SmartCredit credit report, you'll notice that the payment history reports continued "CO" (charge-off), even after the account was closed - just like my example in this video.
Why?
Because the account is unpaid.
What?
Yup. If there were a $0 balance, it would have stopped at you paid the account.
Is that accurate reporting?
No. There shouldn't be any activity once the account was closed (or charged-off).
Why does this happen? Well, basically it's because it's unpaid (but that doesn't mean that it should report that way - but it is the reason why you're seeing it).
How would we use this in a dispute?
"Delete this account for inaccuracy because the payment history reflects that there is continued reporting after the close date of [date] which continues up through [month] of [year]".
What about the 2nd part of this?
Generally, the credit bureaus are in violation of FCRA 623(a)(3), wherein they don't add the required notice of dispute within 30 days of the 1st dispute letter receipt.
9/10, this notice is not added and we now have a violation to use for removal.
What about the other errors for removing UNPAID charge-offs?
How can we utilize the
- date last paid
- date last active
- date last reported
- monthly payment
- high balance
- 1st date of delinquency
etc.?
I recorded a 26min video that goes over everything in addition to the dispute reason formula and dispute reason examples.