If you have in your report some old charge off, let say 4 years old and the creditor is reporting it every month the FICO software will read that reporting as a new carged off account. This have a devastating effect in your credit score, it appears to FICO sofware like if every month you have a different account charged off.
In your report the payment history appears like this
Co co co co co co co co co co co co 180 120 60 30 * * * *...
That is ilegal, you can sue them
The correct way to report that account would be
* * * * * * * * * * * * co 180 120 60 30 * * * *
In Equifax words this old bad accounts are supossed to age and loose weight over time, seems that they found a way to avoid that. It is ilegal. The Charge off is a event NOT a status and can not be reported more than one time per account.
The same thing happens with Collection accounts, they report the CA code every month or they keep it on the last month by deleting the previuos and reporting a new one on the current month. That is also ilegal.
If they are doing this to you, write a letter to Equifax and another letter to the creditor who is wrongfuly reporting.
If you have this in your report after fixing it you'll se a increase in your score somewhere in 50 to 100 points.
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