Collection account on credit report that was paid but still reporting derogatory. Can I file a lawsuit.?

Question

I am currently reviewing my credit reports for accuracy. There was a collection account that was paid off in 2006. I did not and still do not recall what this collection account was for. I filed a dispute with the experian credit bureau. Experian said that the account was valid. The collection says midland. After i disputed this account with experian midland marked the account as being derogatory in april of 2007 and said the account was ok as of may 2007. This is hurting my credit report because it looks like the collection account is current. Also i sent a letter to midland requesting all the pertinent information for this account. Midland has failed to comply with my request. How much time should i give them to respond. I have a letter from midland stating that the account was paid off in 2006 so there is no way that it can be derogatory in april 2007 and then good in may 2007 I only paid the collection because i confused it with a different account Can i file a lawsuit against them

Answer 1

Okay...start with the creditor. If you don't have it already, request a receipt or letter stating that the balance is zero. Make sure that the receipt or letter references the account number that's listed on your credit report.
Once you have that (or if you already do) send a copy of the receipt as well as a copy of your credit report to any bureau that is reporting the account inaccurately.
After you send it to the bureaus, they have 30 days to investiage the matter. If they find that you are correct, then they need to update the account as "paid" instead of "in collection". If they do not update it as such, they will send you a letter and let you know why it's accurate.
After they investigate, by law, they must send you an updated copy of your credit report (you don't have to request one).
I hope that helps.
(Oh, an no need to file a law suit...it will probably cost you waaaay more money than what the collection was for in the first place).

Answer 2

Accurate negative info can stay for 7 years on your credit report. This is why it's called a "credit history." If you have defaulted in the past then future/potential creditors need to be aware of this. The statute of limitations is a completely separate time period that has to do with how long one can be successfully sued for the debt. This time period has nothing to do with the 7 years that negative items can stay on your credit report. His account from 2003 should fall off naturally next year...and that 2004 should fall off in 2011...Just sit tight. "Credit repair" firms have no special power to magically delete negative items....all they do is dispute all negative items on your credit report and hope that the credit bureaus cannot validate the debt within the 30 day allowable time frame, in which case they must remove the items. You don't have to pay anyone to do this as you can do it yourself for free. Per the Fair Credit Reporting Act you have the right to request written validation of negative entries on your credit files. Per this law they must validate the item(s) within 30 days or remove them from your credit file. Mail a letter via certified mail with return receipt to all three credit bureaus (Equifax, TransUnion & Experian). Include a photocopy of your driver's license and social security card...If you don't include these, they may write back requesting them, which would slow the process down by several weeks. For each negative item, write a separate letter and simply include the phrase: Per the Fair Credit Reporting Act, I am requesting written validation of this item. Do this one at a time for each negative entry....DO NOT request validation for all items at one time. There is NO guarantee that this will work....It may give some decent results. The worst that can happen is that all negative items come back verified. Even if you luck out and some/all items get removed, they could be put right back on your credit report in a future update. -------------------- - It can be beneficial to get a secured credit card, the kind where you put up a security deposit and your credit limit is equal to that. You can use this to gradually rebuild a history of on-time payments. - Stay out of further financial trouble. Each new default creates a brand new cycle of bad credit that will last another 2 years.

Answer 3

No need to file a lawsuit-hothead. Send a copy of all correspondence you have with your creditor to Experian, Equifax and TransUnion via return receipt certified mail. They need to make the adjustment or correction within thirty days. By law, they have to either make an update to the info or remove it completely from your credit report. Pull up your credit again after 30 days of your receipt on the return receipt. Believe me it will be either updated or gone. Also they will notify you by mail regarding their determination and what adjustments were made. The key is the return receipt.

Answer 4

I have to agree with roadstar. If you have all the documentation you should not have a problem getting it removed. You can get a free sample credit repair letter from http://www.your-credit-solution.com to send with a copy of your docouments. Make sure you send it by certified mail.

Answer 5

dispute it with all three credit beaurals