06-23-2012 05:34 AM
My former mortgage company is reporting that I was 120 days past due at one point but I was 30 days past due and for some reason they would not let me pay my payment. I had to get a lawyer to force them to let me pay my house payment. I have yet to understand this. My question is If I dispute it will it result in updating last activity as the date I dispute?
06-23-2012 08:16 AM
Probably not because it is the bank that's reporting the lates to the credit reporting agencies. I'd start by communicating with the lender asking them via a goodwill letter to delete the lates, but also including a breif synopsis of what happened and why you brought in the lawyer.
06-23-2012 12:13 PM
Yes, it may result in a dispute flag, temporarily resulting in some information in your file being excluded from scoring, but it wont update the date of occurence of the asserted delinquency itself, and thus wont update the critical CR exclusion date.
To minimise the impact of a dispute on your score, I would file any dispute directly with the furnisher as opposed to disputing through the CRA. Disputes through a CRA will result in an automatic dispute flag. Direct disputes wont unless the furnisher takes the additional step of separately reporting the dispute to the CRA.
If you were not 120 late, that is a major derog that is well worth disputing. You will at least require them to conduct an investigation and state that the accuracy is verified. That improper verification could then serve as the basis for subsequent legal action.
As a side note with reference to the title of the post, the absence or presence of a prior derog is not relevant to its current status of current. A once delinquent account that is brought back into good standing results in a current status of pays as agreed. Current status has no memory. The prior delinquency is a separate issue.