If you have a old account charged off or in collections this migth be happening to you rigth now.
Seems to be a software "glitch", probably intentional, in whatever they use to calculate the FICO score. If the bank is reporting the charge off account every month your score will be every month penalized in the same way that it would if you were 120 days late on any of your open accounts.
In this way a charge off 6 years old will have the same effect in your score that a charge off happening last month.
Every time that a creditor reports a charge off status the fico software read it as a recent late payment so if the creditor wants to re-age the account for score purposses only thing they have to do is keep reporting it month after month. We are talking about 100 points difference in some cases
Equifax Explain in its web site that even if you have delinquent account charged off they will loose weight over time and your score will improve if you pay yours open accounts on time. It is a lie they make damm sure that you stay in the sub-prime market paying hig interests and buying credit reports from them to find a way to improve the score.
In my case was only one bad account in my report, charged off and causing the false late, when i disputed it and it got deleted my score jumped 140 points.
My attorney is putting together the case for court rigth now and we are even thinking about a class action.
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