120 Days Past Due on Paid Collection

[Anonymous]

Hey everyone,

My fiance and I have an accepted offer for a home and are waiting for the contract. I was able to successfully remove Dispute remarks from EX and EQ for a collection that he paid in full back in 2010. He spoke to someone in EQ this morning to confirm that this account has no dispute remark and then went on to run a credit report with him to show the update. His FICO came back 662, and when I went to look at the collection I saw that in January 2011 it shows a 120 day late, which is impossible because it was paid in full last year (we have the letter sent by Asset Acceptance stating this).

My question is, who do we bring this up to? Does he call the contact at EQ who has been super helpful, or should he call Asset Acceptance? I'm just concerned as to which direction he should head because we don't want another dispute opened and run the risk of getting that blasted remark again.

[mauve]

The CA is allowed to report the worst delinquency reported by the OC.  Current status should be "paid, closed" but it isn't?

[Anonymous]

That's the thing it shows paid, closed. That's why I don't know if I should contact EQ or leave it alone. They are the only ones reporting this.

[mauve]

Sounds like it's accurate, unless it was paid before it got to be 120 days late.

[ShanetheMortgageMan]

If you paid it in 2010, then I don't think it should be reporting any new activity after that date.  So since it's reporting a 120 day late payment in February of 2011 then I think that should be able to be removed.  Personally I'd call up Asset Acceptance and ask them to put in writing when the account was paid in full.  Once I'd get the letter, call Asset Acceptance back up and point out that they admit the account was paid off on such n such date, but I have a copy of my credit report showing them reporting activity afterwards.  I'd also let them know I am in the middle of a mortgage transaction and if their misreporting causes me a loan denial then I will be suing their butts off.  Finally I'd require them to report the correct information to the credit bureaus within 72 hours.  Alternatively you could take the paid in full letter to your loan officer and they can do a rapid rescore for $30 per trade line per credit bureau (that is $90 for 1 trade line on all 3 bureaus).