Wrong classification on credit report after the loan was paid off

[liquitexz]

In 2008 I bought a car in which I had an accident and it was a total loss, the bank classify the account as a charge off , when in fact the account was settled by the insurance of the car.  I prompted the bank a letter which indicated that the information provided to the credit score companies was not correct.  Once I received the document it was send to the credit bureaus and none of the three companies erase the information from my credit report. What I can do?

Thanks. 

[p-]

---

@liquitexz wrote:

In 2008 I bought a car in which I had an accident and it was a total loss, the bank classify the account as a charge off , when in fact the account was settled by the insurance of the car.  I prompted the bank a letter which indicated that the information provided to the credit score companies was not correct.  Once I received the document it was send to the credit bureaus and none of the three companies erase the information from my credit report. What I can do?

Thanks. 

---

If the CRA replied to your dispute with "verified" or "updated," that means they got the information from the creditor on record.  If that's the bank, it's possible the bank has their wires crossed.  I reccomend two steps;

First, submit a direct dispute to the bank, including a copy of the letter.  They should then contact the CRA and request removal.

If denied, then get a lawyer and sue all 3 CRA's and the bank for damages, attorney's fees, and an injunction to remove the negative mark from your report.  They will likely settle.

[enharu]

Did your insurance company compensate less than what you owed the bank?

For example maybe your car is worth 6500 but your loan balance was 8000. The insurance company paid the bank 6500 and closed the case. The bank is still out of 1500. If you have any gap insurance, which is usually included for most auto leases, then you need to file an additional claim for the price difference.