Collection reporting huge monthly payment - can I dispute?

[Rinehart]

Backstory--My new wife has a collection account (Calvary Portfolio Services) for a charged off Bank of America debt.  The collection company is reporting a balance of $14,086, a monthly payment of $8130, and luckily she is past the statue of limitations.  I am applying for a home mortgage.  My credit is fine to qualify, but the mortgage loan officer is telling me that they will probably have to take into account her debts with my loan.  He is asking me to do "something" about the monthly payment amount showing on credit.  

My questions-- how can I get this payment reporting lower?  Can I dispute the monthly payment with the credit bureau for a monthly payment that has never been made?  Do I have to contact Calvary Portfolio Services?  The loan officer that I'm talking with has told me to enter into a payment agreement with Calvary Portfolio Services and make payments only long enough for the mortgage loan to process.  I of course don't want to do this.  I'm afraid it will reset the statue of limitations.  Likewise I'm not a big fan of paying off her huge collection from her divorce.  How is it fair for the collection company to report this huge monthly payment?

[guiness56]

Welcome to the forums.

A CA cannot report a monthly payment.  Without seeing how it is reporting, I would guess they are reporting the OC TL.  Only the OC reports payments due.

What state are you in?  If you enter into a payment plan then default you could restart the suing SOL.

How old is the debt?

Is this report from your lender or is it one you pulled?

[Rinehart]

The collection agency is reporting the following:

CALVALRY PORTFOLIO RECOVERY, Reported 5/13, Last Activity is blank, Opened 2/12, High Credit $8130, Past Due $14,086, Payment 1M $8130E, Balance $14,086

The original creditor is reporting as follows:

BK OF AMER, Reported 2/12, Last Activity 09/09, Opened 06/08, Limit $6,600, 90+ 02/12, Past Due $0, Monthly Payment is Blank, Balance is $0, Notes - Purchased by Another Lender

We are in Texas.  

The debt has been over 120 days late for longer than we have been dating / married and that makes the debt at least 4 years old.  EDIT: While I'm looking at this this credit report.  I'm now thinking that the SOL might not expire until after September of this year.

The report is from the lender's credit pull.

[Shogun]

     Is the CA reporting monthly payments?  You aren't making these payments and they are reporting as such?  This is a No No.  You say it's past the SOL, what's the DOFD of the account?

     Also, in regards to your mortgage lender, is your wife going to be on the loan too?  Are you in a community property state?  If the answer to these are no, then her CR has nothing to do with your loan.

[Rinehart]

Yes, the collection agency is reporting monthly payments.

I've been assuming that we are past the SOL based on my conversations with my wife.  Now I'm wondering if we might still have a few months.  I don't know when the DOFD is.

We are a community property state.

[Shogun]

     You need to pull an accurate report to find out.  Have you pulled from annualcreditreport.com?

[guiness56]

Even if the loan will be in your name only, it is not uncommon for the lender to want to consider the spouses debt also.  It happens frequently.

[Rinehart]

No, we haven't pulled one this year. Do I need to pull from all three or a particular CB?

[guiness56]

I would get the free ones now.  They are more accurate and detailed and may not show that.

[Rinehart]

I pulled the annual credit reports (well two of the three....Transunion is mailing because we messed up a identity question).  

Experian reports the Bank of America tradeline as 120 late in Nov of 2009.  The collection does not show a payment amount on Experian.  

Equifax likewise reports the Bank of America as 120 late in Nov of 2009.  

I don't have the Transunion report.  I will break down buy one right now if you guys need to see what is on it.