I had a Discover card that I stopped making payments on after a job loss. (I did try to work something out with them at that time but they wouldn’t work with me). Obviously the card went delinquent and ultimately I got taken to small claims court by a well known shady “Law Firm” and lost. Per Discover and the “Law Firm,” all payments would go to the “Law Firm” and never to Discover. As expected, the debt is listed under Civil Judgments and Discover on my CR.
The main issue I’m having is regarding how the debt is being reported by Discover. The debt is listed with a status of “Charged Off as bad debt” or “Charge-Off” however the condition is listed as “Open” on all 3 CRs. I know the status is correct as charged off, but I’m confused on why they would report the account condition as “Open” at this point. I thought a “Condition” of “Open” meant the CC is still an open account and would be useable if the balance was paid below the limit. I’m assuming the account will never be usable even if I paid the balance below the limit. So shouldn’t they be reporting the condition as “Closed” now that the account has gone through a charge-off, collections, and a civil suit?
Also, if the account should be listed as “Closed” or otherwise and gets updated, will that take the card out of my credit utilization calculations? It’s eating me alive there.