Collection account paid in full, reporting as current collection still

[rkb84]

After going at it with these people at MS Services for months, I just paid in full due to a pending mortgage app, I know I screwed up since it was paid a month ago, they are reporting it as current and unpaid again in December. How should I go about this? I have online disputes with Experian and TU, heck the Experian came back next day and that's when it said "updated" in December with the whole thing still unpaid. Really mad about this I am sick of this place, I just did a BBB dispute also, next steps?

[llecs]

Since paid, call and write in some GWs. IMO, avoid the BBB.

[Shogun]

+1  Don't pull out the big guns until you've exhausted the normal channels.   Send a GW and ask for update or deletion.

[tmobileguy]

So you paid and they refused to update it as paid, and then you paid it again?? That is a complete violation of FCRA and you would be entitled to any damages that were incured.... 

[rkb84]

Sorry if I worded it wrong, I paid once.. in full. And a month later they updated my credit report as unpaid/delinquent/ outstanding balance as of December. And the account wasn't even re-reported since June. It's like when I finally paid them they went out of the way to screw me again by reporting current/unpaid.

[RobertEG]

They have a legal requirement under FCRA 623(a)(2) to "promptly" update any prior reporting, as necessary to maintain its accuracy.

No specific time period is set forth, so the argument would be that more than one reporting period is clearly not "prompt."

I would begin, not by way of BBB complaint, but rather formal complaint to the FTC.

Additionally, to get them on record within a 30'ish day period as stating that they have conducted a reasonable investigation of the accuracy of their reporting, and that their records support its accuracy, I would send them a direct dispute under FCRA 623(a)(8), asserting the inaccuracy as failure to comply with section 623(a)(2).

Verification of accuracy on their part would then be of record, and the issue of either not conducting a reasonable investigation, or of not reporting a result supported by a reasonable investigation, would be established.

I would not hold back on either/or an FTC complaint or a direct dispute based on any concern for their reaction.  They are doing continued damage by failing to show others pulling your credit report the fact of the satisfaction of the debt.... a substantial adverse affect.

[webhopper]

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@RobertEG wrote:

They have a legal requirement under FCRA 623(a)(2) to "promptly" update any prior reporting, as necessary to maintain its accuracy.

No specific time period is set forth, so the argument would be that more than one reporting period is clearly not "prompt."

I would begin, not by way of BBB complaint, but rather formal complaint to the FTC.

Additionally, to get them on record as stating that they have conducted a reasonable investigation of the accuracy of their reporting, and that their records support its accuracy, I would send them a direct dispute under FCRA 623(a)(8), asserting the inaccuracy as failure to comply with section 623(a)(2).

I would not hold back on either/or an FTC complaint or a direct dispute based on any concern for their reaction.  They are doing continued damage by failing to show others pulling your credit report the fact of the satisfaction of the debt.... a substantial adverse affect.

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I agree with all of this!    In my opinion, you should leverage your mortgage broker to do a rapid rescore of the account using the payment receipt from where you paid.  The mortgage companies have a lot more power and more teeth, because if you get denied for a mortgage due to inaccurate reporting, they have every right to sue the furnisher for screwing up their loan origination. 

My mortgage broker was able to work miracles for me and was able to get an inaccurate tradeline completely deleted.

[rkb84]

Just filed an FTC complaint thanks for the advice, done with these scum it's time to play hardball.