Can a charge off go to 120 late after dispute?

[Juss11]

I had an accoutnt that was sold to CA.I diputed it and was delted from all 3 CRAs.So then I disputed the OC.Today Equfax is show this acount as 120 days late with the OC.Before it said charge off,purched by another lender etc.So how can they take back the account if they sold it?Also how can they post it as 120 days late from charge off?This account was 120 days late back in 2006.Now it looks like its late again and my credit score droped by 60 points.Is this even legal?

[Lian]

A 120-day late is not directly linked to a charge-off.

Monthly delinquencies relate to your level of delinquency. A charge-off relates to how they have handled the debt in their accounting books. Removal of a charge-off does not negate the fact of reported delinquencies. Your credit file includes a code called Payment Rating, which picks up your last level of adverse reporting. When the CO was removed, the status of the account at that point, which was apparently 120-days late when they did the CO, became your level of past delinquency, and is properly included in your credit file and CR. The 120-day late is also of record in the Payment History Profile of your account.

Sale of the debt similarly does not negate any prior reporting on actions that preceded their sale of the debt. If you accurately had prior delinquencies, they are not precluded from reporting or required to delete them based on subsequent sale of the debt that led to those delinquencies.

Their reporting looks OK to me.

[Juss11]

So I they changed it from a 0 balance to what the charge off balance is and now there reporting it again. So I call them and they said they sold the account and no longer own it to contact Arrow. I told the person if you NO longer own the account you have to report it as a zero balance and have to report it as a charge off. He told me to stop reading all that BS online and got very rude with me. He said that I did not pay them what I owed them and that they can report it HOW they want. We got into a pissing match over them phone b/c I told him once again you said you dont OWN the account anymore? He said we dont Arrow owns it and that I must pay them before the 7 years (next year) expires or it will go to cival court, and they both will sure me. I laughed at him and said the SOL expires 2 years ago.He them told me fico 08 has no SOL and that was a thing of the past. I told him I was recording this phone call and he said good for you.Here is the problem, I disputed Arrow and they were removed form all 3 CRAs. So do I just pay them? I sure dont want to end up in cival court!

[Lian]

The OC is entitled to report any accurate information that relates to an account while they still owned it. When they report that information is not restricted by the FCRA. The accuracy is based on when the delinquency/derog occurred.

If an account went 120 days late, and then was charged-off, they are entitled to report each of those events. Later referral or sale to a debt collector is unrelated to the accuracy of prior events on the account, and remain in your CR unless specifically deleted by the OC.

A charge-off is unrelated to any sale of the debt.

I dont see any inaccuracy in the continued inclusion of that information in your CR.