How is everyone doing? My name is Joseph and I'm doing major overhauling on my credit. I have a simple question. 4 years ago, I left my hometown heading to basic training. Apparently, my bank didn't process my direct deposit so I had to join a new bank. Once I got out of basic training, I found out that my account was underdrawn $15 and my account was closed. I went ahead and paid the bank the $15 not thinking much of it. Well, now, I'm going through my credit and I see that it was marked as a charge off (something that I wasn't told) and I'm getting two different things. Transunion is telling me that the bank account was closed the exact same day that I paid it off. Experian is telling me that it was reported as a charge off as of Jun. 2006. What should I do to get this issue settled and get this off of my credit?
Joey
Can you tell me the amount for which the account was charged off? If it has been charged off for 15$, it is very sad because your account has been charged off for this very small amount. If the debt has been marked as charged off in your credit report, it will stay in your report for seven years and lower your credit score. However, you may request your creditor to remove the charge off listing from your credit report since you have already paid off the amount.
Have you paid $15 before June 2006. If you have done so, there is no reason why the bank should list the account as charge off in your credit report. However, if you have made the payment after the account has been charged off, then it is very difficult to remove the charge off from the credit report. However, if the account has been charged off after you have made the payment, you can send a letter to the bank asking them to remove the charge off from your report.
What are the real possiblities of them doing this? Have you been successful in having charge off's removed Justin?
The thing is, I wasn't even told that this was a charge off. I was just told that my checking account was closed and I paid the overdraft fee. I didn't think anything else of it. This was in 2004. Now when I look at experian, it talks about something from 2006 when I haven't even had contact with them since my account was closed. I'm thinking about writing a formal complaint.
Hi Jahsoul
You said that you have paid the overdraft fee to the bank. But did you pay the fee after six months from the date your account was closed? If six months has expired and a debt is not paid, the creditor (in your case the bank) generally charges off the debt and reports it to the credit bureaus. However, if you have paid the overdraft fee before the account was charged off, then they should not report it to the bureaus as charged off. So you should check it first and then send a dispute letter to the bureaus asking them to remove the listing.
Is the bank local, can you go there and find out if the fees were paid off before the charge off took place.