Disputed Accounts reporting "Charge-Off"??

[allinschenk]

I disputed a Chase account that was IIB as "not mine" and now Equifax is reporting it as follows...

Rate/Status changed to: Bad debt; placed for collection; skip
Narrative Code 1 changed to: CHARGED OFF ACCOUNT
Narrative Code 2 changed to: ACCOUNT CLOSED BY CREDIT GRANTOR

I have a terrible feeling I should have left well enough alone. What's my best course of action now and how is this going to affect my credit score now?

[IBroke]

I disputed a Chase account that was IIB as "not mine" and now Equifax is reporting it as follows...

Rate/Status changed to: Bad debt; placed for collection; skip
Narrative Code 1 changed to: CHARGED OFF ACCOUNT
Narrative Code 2 changed to: ACCOUNT CLOSED BY CREDIT GRANTOR

I have a terrible feeling I should have left well enough alone. What's my best course of action now and how is this going to affect my credit score now?

Well, Chase obviously verified wrong information with the bureaus - now you can go after them. If it was IIB, it must say "IIB". Period.

Make a copy of the result of your dispute that shows the information about the Chase-account and send them a certified letter with return receipt (CMRRR), demanding that they should REMOVE the entire account from ALL reports within 30 days or you are going to sue them for violation of the FCRA. Since the debt is discharged, they have no defense against a possible lawsuit from your end.

And don't simply demand a "corrected" reporting. That's what your dispute was for and they blew it! Now you can demand the removal. And trust me, they prefer removing an account that was discharged over paying you for any possible FCRA-violations.

[allinschenk]

Thank you so much for the reply. I didn't realize that I could request a removal over a correction when the tradine is reporting in error. Is this true for any error such as an incorrect balance? Thanks again!

[IBroke]

Thank you so much for the reply. I didn't realize that I could request a removal over a correction when the tradine is reporting in error. Is this true for any error such as an incorrect balance? Thanks again!

To secure your rights in such a case, it is important that you fullow a strict "protocol".

If you pull your own report and discover an error, that error alone is NOT sufficient to request the removal of the tradeline.

There is always one question that you have to ask yourself when working on your report. Do you simply want to have an error corrected ASAP or do you want to build a legal case against a reporting creditor? This is crucial to know because both goals have a different approach.

A. You want to have a wrong information corrected as soon as possible and don't intend any further action against the reporting creditor. Example: Your mortgage closing is in 2 week and you have to correct an error.

In this scenario, you contact the creditor DIRECTLY by sending a certified letter to the address listed on the credit report and ask for correct reporting. That is the easiest way because one letter to the "source" of wrong information should correct the error on all reports. That saves the hassle of disputing which each and every agency individually. In addition, official disputes tend to take longer and the success-rate is lower because after all, the bureaus only contact the creditors and it is very likely they verify what is already on file. In this scenario, that's not what you want - but in the other scenario, it is..

B. You are not in a hurry and your long term goal is to improve your credit and get as much of the derogatory accounts as possible removed. Example: You. After a discharged CH7, it's time to clean up - and it's time to do it right. In this scenario, courts have already ruled what has to be done in order to enforce the FCRA. To build a case against a creditor, you HAVE TO dispute wrong information with the credit reporting agencies FIRST and those creditors would have to verify incorrect information as "correct" - as they obviously did in your case by leaving the "IIB" out. I recall that the verification of wrong information entitles the consumer to have the tradeline removed.

[suitelady79]

that is some pretty good information IBroke.
I'm trying to do any clean ups after my Chapter 7.
I've been successful with a couple but I am a bit stuck on
this one account.
It was a collections account that "should"have been included in my
bankruptcy. Instead the rep at that collections agency "somehow"
flagged my account as a paid collections account. I have 2 different disputes
with them. 1- I've never paid on that account and 2-it was included in my
bankruptcy papers. So, could I dispute that account for incorrect reporting and request complete deletion?? It comes off in 2 years so I could just let it sit but it's still something that is reporting negative on my report that isn't correct.

[doudis2]

To secure your rights in such a case, it is important that you fullow a strict "protocol".

If you pull your own report and discover an error, that error alone is NOT sufficient to request the removal of the tradeline.

There is always one question that you have to ask yourself when working on your report. Do you simply want to have an error corrected ASAP or do you want to build a legal case against a reporting creditor? This is crucial to know because both goals have a different approach.

A. You want to have a wrong information corrected as soon as possible and don't intend any further action against the reporting creditor. Example: Your mortgage closing is in 2 week and you have to correct an error.

In this scenario, you contact the creditor DIRECTLY by sending a certified letter to the address listed on the credit report and ask for correct reporting. That is the easiest way because one letter to the "source" of wrong information should correct the error on all reports. That saves the hassle of disputing which each and every agency individually. In addition, official disputes tend to take longer and the success-rate is lower because after all, the bureaus only contact the creditors and it is very likely they verify what is already on file. In this scenario, that's not what you want - but in the other scenario, it is..

B. You are not in a hurry and your long term goal is to improve your credit and get as much of the derogatory accounts as possible removed. Example: You. After a discharged CH7, it's time to clean up - and it's time to do it right. In this scenario, courts have already ruled what has to be done in order to enforce the FCRA. To build a case against a creditor, you HAVE TO dispute wrong information with the credit reporting agencies FIRST and those creditors would have to verify incorrect information as "correct" - as they obviously did in your case by leaving the "IIB" out. I recall that the verification of wrong information entitles the consumer to have the tradeline removed.

Hi I Broke,

I'm about a week away from discharge (fingers crossed) so I will be cleaning up my CR's ASAP as well. I really appreciate the information you provided, but I was just wondering if you or someone else you know has been successful in the methods you are outlining? Just curious how things went down once the creditor's get the demand for removal letter?

Thanks and have a great day!

[IBroke]

So, could I dispute that account for incorrect reporting and request complete deletion?? It comes off in 2 years so I could just let it sit but it's still something that is reporting negative on my report that isn't correct.

As I pointed out before, the first thing you would have to do is dispute the account with a credit bureau. You can't just go ahead and ask for deletion. The dispute is their chance to "get it right". If they blow it (verify the wrong information), THEN you can go ahead and send them a certified letter, demanding deletion.

It's some sort of legal matter to follow that protocol. In case they verify wrong information, you can claim that you disputed wrong information (in other words, you notified them of the error and asked for correction) and they didn't meet the requirements under the FCRA (they verified the wrong information without making sure it's accurate).

The point that matters is the WILLFUL reporting of wrong information. Without a previous dispute with a credit bureau, you have no legal proof of that. BTW, disputing with the creditor directly does NOT meet the "protocol-requirement". It has to be a dispute with the credit-bureau. Don't ask me why that's the case - but that's what the courts ruled.

[IBroke]

Hi I Broke,

I'm about a week away from discharge (fingers crossed) so I will be cleaning up my CR's ASAP as well. I really appreciate the information you provided, but I was just wondering if you or someone else you know has been successful in the methods you are outlining? Just curious how things went down once the creditor's get the demand for removal letter?

Thanks and have a great day!

I'm not yey as far as you are, but based on what I read in various forums, many accounts are already deleted as soon as the creditors are informed about your BK. They are no longer interested in you because they can't collect anything. The great thing after the discharge is that they can't countersue you for any debts you had so if they violate any FCRA-regulations, they would actually owe you money - and trust me, NO creditor wants to pay YOU after you just discharged their debt. They rather comply with your demand. Credit reports are FULL of errors - first delinquency date wrong, number of days late wrong etc. It's actually NOT normal if EVERY input is correct..

And if you dispute these accounts, you simply ask for a general verification due to errors - no need to tell them exactly what's wrong. That's THEIR job. So what do you think, how likely is it that an error remains undetected? I'd say very likely...

BTW, did you know that after BKK, they are required to report a $0 balance? You probably do, but did you know that a blank field (instead of $0) actually hurts your FICO? Some creditors simply report IIB BUT leave an empty space at the balance-section. That's NOT allowed - $0 is required.

Also, if you had a judgement against you, you might be able to have it vacated after your discharge. You take your discharge papers to the court were the judgement was filed, pay a small fee and have it vacated. Instead of showing a judgement in your credit report that is satisfied, you now have NO judgement on your report AT ALL. Cool, right?

I'm already looking forward to my discharge and the credit fun part. I already know that my BK will be a huge credit IMPROVEMENT once I'm done!

[allinschenk]

So does that mean if one of the bureaus verifies wrong information wether it be a "charge off" in my case of simply an incorrect balance or date the account opened you can request the removal of the trade line by the creditor?

Also, what if the account was a well established account prior to the bk with no late payments...should my goal still be to delete the trade line. Would this raise or lower my existing scores?

[buffy]

So if several accounts at Transunion are still incorrectly reporting as charged off, I should send the creditor a registered letter demanding that the account be removed. Has anyone actually done this?

[ABC]

what is IIB ?

[doudis2]

IIB - Included In Bankruptcy