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05-02-2011 02:24 PM
If I have an account currently in dispute will it show up on my reports with a notation that it is in dispute - or is it actually removed from my file until the dispute is resolved?
Thanks in advance!
05-02-2011 03:56 PM
When I disputed a derogatory account in the past, it still showed up during the investigation BUT the little red flag symbol, indicating a derogatory account was gone and it said "No" under the "derogatory account"-section.
Does that mean that a derogatory account is not factored in as long as it is under investigation?
05-02-2011 04:27 PM
It looks like it may be gone -- gone -- gone then!
I disputed online this morning (as obsolete, although a few months early from the listed drop off date) and the account is gone from here at MyFICO, Amex CS, and shows as "removed" on TrueCredit.
That was a loooooooooong 7-ish years!
05-02-2011 04:57 PM - edited 05-02-2011 04:58 PM
When you dispute through a CRA, they record this fact under field code 20 of your credit file, which is called the "Compliance Condition Code." It reflects the reporting of a condition that is required for legal compliance with the FCRA, such as disputes or accounts closed at the consumer's request,
This code is intially recorded for disputes to reflect the filing of the dispute. When the dispute is resolved, the compliance code is updated to reflect the outcome, So after resolution of a dispute, that information will be retained in your credit file.
FICO uses these codes to temporarily exclude certain items of account information from their scoring during the period that the Compliance Condition Code does not yet reflect the update of the resolution of the dispute.
As an aside, all of this may be avoidable if you use the direct dispute process, rather than disputing through the intermediary of a CRA. Direct disputes are unknown to the CRAs until such time as the credtior/debt collector reports some information related to the disptue. I dont belive that most creditors/debt collectors who receive a direct dispute take the time or effort to separately inform the CRA only of its filing. As such, entry of a Compliance Condition Code in your credit file amy be bypassed, and thus the need to update it once the dispute is resolved.
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