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  1. #1
    Join Date
    Jan 2008
    Posts
    10

    Default Reporting Negative Info On Credit After Account Was Closed

    OH


    Here we go again

    First Premier Bank has done it again.
    Long story short, I had a credit card with FPB. I decided to close the account after 1 year and ˝ because there ridiculous online payment fees. My account got a bit out of control. I ended up closing the account with a settlement. I hate this credit card company.

    Once I settle the account and once the account was closed since March 2006, today is still the day that they are reporting negative information on my credit report such as Key Derogatory** For the month of Feb and Oct of 2007. I have read some posts here on this forum but I am still unclear.

    **Key Derogatory = Claim, Term Default, Government Claim, Paid by Dealer, Bankruptcy Chapter 7, 11 or 12 Petitioned, or Discharged and Bankruptcy Chapter 7, 11, or 12 Reaffirmation of Debt Rescinded.

    I contacted all 3 credit bureaus to see if I can provide proof of settlement and proof that the account was closed in March of 2006 just so they can have it in their records in the event that First Premier decides to post it again and no luck. They won't accept it.

    So what am I supposed to do? Is a back and forth with them. Once I issue a dispute, this negative info is removed and then in the next couple of months is back. This is really frustrating. I understand when you settle an account is not intended to be positive, I did what I had to do the simply get rid of them but this Key Derogatory has nothing to do with the fact that I settle this account or does it?

    This company has basically no reasons to feed this negative information and not especially when I no longer have the account with them. Yes I was late with the twice and it was too much for me to handle it. I settled it, the account is closed, why now, they have decided to report something like this? My thing is this, if I closed the account back in March of 2006, do they still have the right to report this after the fact?

    Can anyone suggest anything?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    71,756

    Default Re: Reporting Negative Info On Credit After Account Was Closed

    You settled with the bank, by which you apparently mean you paid a lower amount than was due such that the bank took a loss. Banks will report that. Did you have an agreement that they wouldn't report a negative credit entry after your settlement, and did you get that commitment in writing?

  3. #3
    Join Date
    Jan 2008
    Posts
    10

    Default Re: Reporting Negative Info On Credit After Account Was Closed

    I hate to say… but no.

    This settlement was paid over the phone. The rep and I had a verbal agreement and I was clear that by closing the account in the form of a settlement, that itself wasn’t going to be a positive reflect on my credit. I was ok with that for the time being because the reality then was, just getting rid of this account once and for all. The rep that assisted me with this settlement never said A WORD to me about the possibilities of having this account on KD.

    Now, I just want to be clear. I settle the account; the account was closed on March of 2006. Since then, it was reflecting on my credit as a settlement and closed but many months after that, they came back and posted KD on this account. Can they still do this?

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,620

    Default Re: Reporting Negative Info On Credit After Account Was Closed

    They can report accurate information about your account, up to the date the law requires the entry to drop off of your credit report.

  5. #5
    Join Date
    Jan 2008
    Posts
    10

    Default Re: Reporting Negative Info On Credit After Account Was Closed

    Quote Quoting aaron
    View Post
    They can report accurate information about your account, up to the date the law requires the entry to drop off of your credit report.
    Thank you Aaron

    But there is still one question that I have, how is KD associated with this settlement? When I see the meaning of KD, I read and read it over and over again, and honestly am just confused. I can’t see how this is associated to that.


    **Key Derogatory = Claim, Term Default, Government Claim, Paid by Dealer, Bankruptcy Chapter 7, 11 or 12 Petitioned, or Discharged and Bankruptcy Chapter 7, 11, or 12 Reaffirmation of Debt Rescinded.

  6. #6
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,620

    Default Re: Reporting Negative Info On Credit After Account Was Closed

    Credit reports often seem to include a "key derogatory" entry where part or all of a debt is written off.

    If you want clarification of a particular credit bureau's policies, I suggest asking them for clarification. If you believe the entry is in error, you can object.

  7. #7
    Join Date
    Jan 2008
    Posts
    10

    Default Re: Reporting Negative Info On Credit After Account Was Closed

    Quote Quoting aaron
    View Post
    Credit reports often seem to include a "key derogatory" entry where part or all of a debt is written off.

    If you want clarification of a particular credit bureau's policies, I suggest asking them for clarification. If you believe the entry is in error, you can object.

    Thank you Aaron for your help.


    I am just to the point the I am about to call them and just pay out the difference. I just don't like how that settlement looks.

    Thanks

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