Please Help! Post Discharge Reporting

[terryandal92]

We discharged in June of 08 and after checking our credit report recently, found out that a couple of the credit card companies we discharged with are still updating to the credit bureau. So essentially, the date listed as updated is recent 2/ 2011 even though it shows that it was discharged in 08 and is listed and being discharged in Chapter 7. It is reporting the balance as $0.

The question I can't seem to find an answer to anywhere is are they able to keep reporting every month, basically making it look to creditors like we recently filed or had a late payment, even though it was discharged over 2 years ago? It's that silly updated date that seems to be getting in the way of getting our score up.

[IBroke]

We discharged in June of 08 and after checking our credit report recently, found out that a couple of the credit card companies we discharged with are still updating to the credit bureau. So essentially, the date listed as updated is recent 2/ 2011 even though it shows that it was discharged in 08 and is listed and being discharged in Chapter 7. It is reporting the balance as $0.

The question I can't seem to find an answer to anywhere is are they able to keep reporting every month, basically making it look to creditors like we recently filed or had a late payment, even though it was discharged over 2 years ago? It's that silly updated date that seems to be getting in the way of getting our score up.

The update-date shouldn't hurt your credit. As long as the date of first delinquency and date of last activity doesn't change and is reported correctly, your credit shouldn't be affected. The accounts are still aging off. A recent update is not the same as a recent missed payment. The "update-date" only shows when the status of your account was reported.

[terryandal92]

Thanks so much for the reply but I guess I should have given more information. It seems that this is adversely effecting our credit score because in checking our score we were listed as having a late payment in the last month. We do not and were told that it doesn't necessarily mean we have a late payment but that there was something derogatory on our report. That update date was the only thing that could possibly be construed as detrimental. We attempted to make a large purchase that would be financed and were asked why it looked like we had filed bankruptcy in the last month. That's how creditors are viewing it. Our score dropped a full 100 points in a period of only a couple of months. That is the only thing different. Unfortunately, in scoring, the missed payment and an current update on a derogatory account are seen as the same thing.

The real question I can't find the answer to is are they able to update the account even after it has been discharged? Even almost 3 years later?

[IBroke]

Thanks so much for the reply but I guess I should have given more information. It seems that this is adversely effecting our credit score because in checking our score we were listed as having a late payment in the last month. We do not and were told that it doesn't necessarily mean we have a late payment but that there was something derogatory on our report. That update date was the only thing that could possibly be construed as detrimental. We attempted to make a large purchase that would be financed and were asked why it looked like we had filed bankruptcy in the last month. That's how creditors are viewing it. Our score dropped a full 100 points in a period of only a couple of months. That is the only thing different. Unfortunately, in scoring, the missed payment and an current update on a derogatory account are seen as the same thing.

The real question I can't find the answer to is are they able to update the account even after it has been discharged? Even almost 3 years later?

Hmm, I just did some resarch on other sources and it seems that:

a) a creditor is allowed to report every month in that case
b) it actually affects your credit-score although I don't know if the negative impact is as big as it would be on a missed payment.

I have to admit that I'm a bit confused. I have several of these accounts as well that updated and reported well after the date of first delinquency - but on myfico, I'm told that one of my positive factors is the fact that I haven't missed a payment for more than 3 years - far longer ago than the most recent update on some of these accounts. That tells me that - at least FICO - is distinguishing between a late payment and the negative impact of an updated reporting date of a derogatory account.

It seems they can play this dirty game for 7 1/2 years after your date of first delinquency. This is indeed, well, ridiculous.
I guess this is another reason NOT to be ashamed of filing BK...

[Clabbergirl]

So is there no way to remedy this? Is this another case of guilty-until-proven-innocent on a credit report?

[IBroke]

So is there no way to remedy this? Is this another case of guilty-until-proven-innocent on a credit report?

That seems to be the case. I guess they can argue that they are reporting what they have to: $0 balance and IIB.

And since there is no law about limiting the update of correct information....

[thereshope]

Thanks so much for the reply but I guess I should have given more information. It seems that this is adversely effecting our credit score because in checking our score we were listed as having a late payment in the last month. We do not and were told that it doesn't necessarily mean we have a late payment but that there was something derogatory on our report.

Did you pull your FICO? it gives some information about what's hurting/helping your score that the credit bureaus don't give you. Also, are you seeing the same thing the account for all the credit bureaus? I've noticed on my credit reports that they all report differently.

I started a thread on a similar issue that I've having with my credit report. The way it's being reported to one of the credit bureaus is causing a new derogatory every month. http://www.bkforum.com/showthread.php?68626.

[terryandal92]

Yes, that's how we originally found out about all this was because we pulled a MY Fico score. It listed us as having a late payment in the last month which is untrue. We haven't had any late payments since the bankruptcy in 2008. When we called MyFico we were told that it isn't necessarily a late payment, but something derogatory on the account. The updated date was the only thing that we could find. She suggested that this is the reason for the "late payment" ding.

As an update, just spoke with our attorney today and he said that they are able to update the account since the information is accurate. In a nutshell, there is nothing we can do about it unless they are stating inaccurate information. They can keep doing it for the 7 years or whatever. He said some companies do it and some don't. Seems like they've found a little loophole to keep people from rebuilding their credit quickly.

[Amy26]

You could still fight it if you wanted to really dig at it. Is there anything at all on the trade line that is inaccurate? Even if its something stupid like an account # being off or they misspelled it. There are some different types of letters you can write to the original creditor or the CRA. A lady on another credit forum that I frequent just had her bankruptcy deleted off her trans union report from writing a very simple "inaccurate" letter to them.

Some say the trick is to get the dispute to a live person. Typically, when you dispute online or even send a letter in the mail it all gets automated. It does some standard checks and then it usually comes back "verified". But, if you actually get the dispute into the hands of a real person at the CRA, chances are more in your favor. I have heard that you need to hand write the envelope and use an odd color pen ... this is so they can't run your letter through their computer scanners. People have come up with some really crafty things.

You could also try writing a good will letter to the original creditor and send it to an executive and see if they would stop doing it out of the kindness of their hearts.

[Charlie777]

I had this problem with CapitalOne, I think there may be a couple of different date fields, they are updating the status date not just the reported date. I used a 623 letter, they wrote back saying everything was reporting correctly, but the monthly updates stopped and date of last derogatory went back where it belonged.

Some folks say you should scan and paste in the actual reported line, but here's letter that worked:

Creditor

Month, Day, Year

Via First Class Mail and Certified Mail, Return Receipt Requested

Re: Acct #######

To Whom It May Concern:

This is my written notice of dispute pursuant to regulations recently adopted by all banking regulators and the Federal Trade Commission, effective July 1, 2010, which implement section 623.(a)8 of the Fair Credit Reporting Act (FCRA). Under these rules and the FCRA, Creditor must investigate my dispute, review the enclosed documentation, and report your findings to me, making corrections to your reporting to Transunion, or deleting the trade line entirely.

I recently reviewed my credit report from Transunion and found that you were erroneously reporting this account as Included In Bankruptcy (IIB) with a status date after the discharge date of November 23, 2009. This erroneous reporting has damaged me by impeding my ability to secure credit. On May 28, 2010 Transunion signed a certified mail receipt for my dispute letter. Transunion subsequently reports that you verified this reporting as accurate.

Specifically, credit scoring schemes, such as FICO, from myfico.com, are identifying your reported line as more recent than November 2009 when the Bankruptcy Discharge was granted. You must ensure your reporting to Transunion does not create the misleading impression that this account was IIB later than November 2009.

I have enclosed the following documentation supporting this request:

A copy of my Driver’s License to prove my identity
A copy of my Social Security Card proving my identity and association to this credit file
A copy of my Bankruptcy Discharge
A copy of Transunion’s claim that you verified this reporting

[thereshope]

Yes, that's how we originally found out about all this was because we pulled a MY Fico score. It listed us as having a late payment in the last month which is untrue. We haven't had any late payments since the bankruptcy in 2008. When we called MyFico we were told that it isn't necessarily a late payment, but something derogatory on the account. The updated date was the only thing that we could find. She suggested that this is the reason for the "late payment" ding. .

I'll have to check my report to see if the update date is also an issue, I had only focused on the closed date. But my issue is only with Transunion, the others seem to be ok.

[tada]

Just my opinion, but do not ever send a copy of your BK discharge papers to any CRA. Public records will show that you have a BK discharge and the date, but it will not show which accounts were included. By providing the CRA with the discharge papers, you are volunteering data and leaving no doubt which accounts are included, which could hurt you in the long run if you ever challenge a reporting on an account.

[discombob1]

Just my opinion, but do not ever send a copy of your BK discharge papers to any CRA. Public records will show that you have a BK discharge and the date, but it will not show which accounts were included. By providing the CRA with the discharge papers, you are volunteering data and leaving no doubt which accounts are included, which could hurt you in the long run if you ever challenge a reporting on an account.

I'm confused. My discharge order was all of two sentences saying I was discharged. There was no list of debts with it. Did you get something different?

[tada]

I'm confused. My discharge order was all of two sentences saying I was discharged. There was no list of debts with it. Did you get something different?

If that's all you sent, then you are fine. But if you send the full copy of the BK paperwork that has the debt matrix, it will show each account that was IIB. Some people have done that to prove and individual account was IIB or not. So if you ever want to challenge one of those debts, you have basically admitted in writing that you were responsible for the debt and that it was included in the BK.