Personal Finance

Interpreting Credit Report - Dispute -Help

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  • Dec 13th, 2019 8:11 pm
[OP]
Newbie
Jul 23, 2009
4 posts
ONT

Interpreting Credit Report - Dispute -Help

Hi All, I welcome your advice on this issue.

I had an issue where my Line of Credit was over due and had a dispute with the Bank about the high interest, long story short, it ended up as a legal matter where I eventually paid off the entire balance and close my Line of Credit. this was about seven months ago.

I recently pulled my credit report ( with a low score) from equifax and saw this item showing up as "written-off" and not as "paid-off". From my understanding Written-off is if all or part of the debt was unable to be paid off but I paid off the entire balance.

My question is, does this "written-off" instead of "paid-off" status has an impact on my credit score and if yes, can I dispute this item with Equifax.
NB: I have a letter from the bank's legal representative that confirmed the balance was fully paid off.

Kindly advise .

Thanks
Dave Evan
Thread Summary
Credit Report & Dispute
3 replies
Deal Fanatic
Apr 16, 2007
7957 posts
3243 upvotes
Financial District B…
dvevan wrote: Hi All, I welcome your advice on this issue.

I had an issue where my Line of Credit was over due and had a dispute with the Bank about the high interest, long story short, it ended up as a legal matter where I eventually paid off the entire balance and close my Line of Credit. this was about seven months ago.

I recently pulled my credit report ( with a low score) from equifax and saw this item showing up as "written-off" and not as "paid-off". From my understanding Written-off is if all or part of the debt was unable to be paid off but I paid off the entire balance.

My question is, does this "written-off" instead of "paid-off" status has an impact on my credit score and if yes, can I dispute this item with Equifax.
NB: I have a letter from the bank's legal representative that confirmed the balance was fully paid off.

Kindly advise .

Thanks
Dave Evan
The terms written-off or charge-off refer to a credit account that went into delinquent status. Written-off/charge-off in banking administration terms means the account was removed off its books for taxation purposes. It then goes into collections and recovery status.
Written-off/charge-off does not mean in any way that the FI's just threw their hands in the air, shrugged their shoulders and gave up.
Some written-off accounts are collectable and some are not. Either way it has very little to do with the outstanding balance but again more-so to do with administration and the reporting of the account and how it was serviced by the debtor.

Lots of people have delinquent charged off accounts that become R9/I9/C9 status on their credit reports and the accounts were later collected and/or settled. This is no way changes the accounts payment performance of the tradeline.

The fact that your FI had to go legal tells me the account was delinquent and the only way to settle it was through the courts/arbitration.
Settling the accounts outstanding state does not mean your payment performance on the LOC automatically becomes a C1 perfect rating again. That's not how things work.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Sr. Member
Dec 22, 2007
687 posts
339 upvotes
Mississauga
you can try to dispute it with equifax. at this point you have nothing to lose.
Deal Fanatic
Dec 5, 2006
9189 posts
4490 upvotes
Markham
If OP wants to dispute, shouldn't OP disputes with bank? Equifax just collect trade line information

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