I have a HSBC NV account that was opened in 8/2002. The account was included in my BK in Februrary of this year. It shows 8, 90+ days late payments in early 2006. Ever since 9/2006 they have been reporting the account paid as agreed but the status is Bad debt/collection. This account was sent to a collection agency which removed their record from my credit report after the BK so I guess that is why HSBC started reporting it as ok??. The majority of my other credit is newer credit with the exception of student loans from the late 90's. Would I be better off to leave this on my report since it shows they are reporting it as paying as agreed since the age of my other credit is fairly young? Or would it help my score more to try to get the account removed or at least the late 8 payments removed?
You want the account gone.. however, the account has to show a $0 balance, $0 past due and can not say "charge off/bad debt/skip trace" or anything else derogatory - It can only say IIB and show the amount ($0 balance/$0 past due).
Just dispute it as IIB. They came after me to repo the car with judgements after they could not find the car and they had been reporting a charge off and a balance of 1624. They just removed the charge off and set balance to 0 with IIB from my EQ and my score skyrocketed. It worked.
Almost all my accounts were reporting wrong after my BK, most were shown as collections/charge-offs, etc...plus they were all showing amounts past due, it was a mess. I found out from reading thru all sorts of credit boards that even if an account was in collections or was charged off, as long as you IIB, once the BK is discharged, they still have to report it as IIB with all 0$ amounts.
I printed out all my reports and highlighted all the errors and wrote in how they shouldl be reporting, plus wrote out letters for each one and sent them off. I didnt even dispute that they were ever in collections/charged off....I just said even tho they had been charged off, the accounts need to be updated to show IIB. So I sent off all my documents (certified mail as I learned from the boards), and after several weeks, everything got fixed to report correctly. So I actually had no problems with my disputes, everything got fixed, and my FICOS jumped alot after that! I know I have seen letter templates posted on here that you can use, maybe doing a search you can find them.