Discharged Creditor Reported 3 Months After Discharge?

[buffetbuster]

My wife has a few discharged creditors that reported on her credit report in 12/11 when we were discharged in 9/11. Is this legal? If not, should I contact the credit bureaus or the creditors themselves and what should I say to them? Any help would be greatly appreciated.

Thanks!

[CCsAreEvil]

What exactly are they reporting? Are they reporting a late payment for 12/11? If so, that's illegal. You need to dispute those items. Easiest would be to dispute each item with each of the 3 bureaus. Note that the item is IIB (Included In Bankruptcy). It shouldn't be difficult since the BK discharge is already noted in your credit reports (did you verify this?).

[HHM]

Same question, what was reported?

In any event, the first response is to dispute with the credit reporting agencies.

[buffetbuster]

It says, Last Reported 12/11; Balance $0; Condition - Derogatory. Does this help?

[HHM]

This sounds like a notice you got from a credit monitoring service, yes?

In any event, the zero balance is correct and that is what should be reflected on the credit report.

The "derogatory" is not something that goes on your credit report, that is the monitoring service letting you know that the entry in questions is a negative entry, probably because it is listed as "included in bankruptcy"

Pull your actual credit report.

[CCsAreEvil]

It says, Last Reported 12/11; Balance $0; Condition - Derogatory. Does this help?

Ok. This might be the same issue I have with CapitalOne. I've been discharged for over 2 years now. But on TransUnion (this issue has been corrected on Experian and Equifax), for some reason, they keep updating just the "date" field. Mine also shows balance $0 and derogatory. However, from researching online, the consensus is that they are allowed to do that. I've reported a number of times to TransUnion, but they claim CapOne has the right to do this as long as it says no past payment due and a balance of $0... go figure.

But.. it seems that this possibly affects the credit rating. Because when I checked using a credit monitoring service, the report claims that there was a "derogatory" event that just happened within the past 30 days. Does this actually affect true FICO scores (or other scoring models)? Who knows.

Even with CapOne still doing this, my TU score appears to be steadily going up.. it's about 680 right now. So, I may try from time to time to keep reporting.. but I think they MUST remove it by the 7 year or 10 year mark (when derogatories should officially fall off the reports).

[HHM]

What I think is happening is a bug in the credit monitoring system.

The "trade line" is a derogatory account because it is listed as IIB. When the creditor updates the "date", the credit monitoring software doesn't distinguish, so all it sees is an "update" on an already derogatory account.

I do not think this issue affects your FICO score, but I don't know. Honestly, I think it is a deficiency in the way credit monitoring systems work.

But, at the same time, it defies reason why the creditor would continue to report anything on an IIB account.

[help1234]

We have the same problem with Capital One. It has been over 18 months since discharge and they are still updating the report date every month to Transunion. And only 1 of the 3 cap one accounts we had are doing this. I, too, have tried to have it removed and cap one says it is totally legit as long as they report 0 balance and IIB.

[HHM]

I asked one of my buddies who knows credit reporting better than I, he believes the credit monitoring service is just sending the alert as a way to justify the fee paid. In reality, the mere update of the date is probably not harmful, or is too minor to be concerned in that it is unlikely the action is any violation of FCRA.

Just start rebuilding credit.

[panda]

Wells Fargo Visa continues to update all of the credit bureaus I check (equifax,creditkarma) with the current month every month and we have been discharged almost a year. I pulled fico scores last week and they were updating the dates on it as well. All of our other creditors are no longer checking in, and most have not done so for a very long time, except for our BOA mortgage which has not foreclosed yet, but I expected that from them until it is foreclosed. Everything is IIB zero balance as well, and our scores are continuing to slowly rise.