Does a dispute really help your credit score?

[PatB]

When I moved out of an apartment recently, they hit me for over $2,000 in damages.  A couple of items were legit, but they would still have owed me money except for adding damages caused by their negilgence, pre-existing damages, and flat out false damages ($300 to "Re-paint Cabinets" in an apartment with no painted cabinets?)  I talked to the apartment complex and got nowhere.  It went to collections.  I contacted them and said that I disputed the charges, but was willing to pay a small amount for PFD.  We had actually negociated an amount when we hit a sticking point. 

I said that, as this was a contract, I wanted something on paper from them, with a signature, stating the amount and the terms (paid in full and delete from CRs).  When I received that, I would overnight a cashier's check for the agreed upon amount.  They said that they don't do business through the mail (although their first contact with me was through the mail as they have no phone number and no email address), and they do not accept checks or money orders.  They would only email me the agreement, and then I must give them my debit card number.  No check, no money order, no PayPal. I countered that I noticed they were rejecting every method whereby I controlled the amount and would only accept one where they controlled the amount pulled out, and that the only businesses I had encountered that refused to do business through the US Mail were those afraid of prosecution for Mail Fraud.  They threatened that if I did not give them my debit card number by end of day, the negociated amount was void and they would not accept anything but full payment.  I countered that I would do business only through accepted business methods (contract on paper and cashier's check). 

So, I ended up not paying anything and now it's on my credit. I have since Googled them and found complaints from other people that they have refused to do business through the mail, and that they have pulled out the full amount rather than the agreed amount when they get a debit card number.  Should I put in a dispute with the CRs detailing their actions?  I don't think they are going to be willing to do anything about this.  Will this actually help my credit, or be a waste of time because no-one will look at it?

[llecs]

A dispute comment on a CA's listing will have no impact at all on your credit. The only time a dispute comment will impact your FICO score is if it is an OC account, whereby FICO will ignore the payment history, the balance and the CL (if applicable). In a case like that, a dispute comment can make your score go up or down based on how that OC was reporting. Disputes have no impact on other items like mix of credit, scoring buckets, length of history, etc. And as mentioned, it won't impact CAs, and PRs too....Once a dispute is completed, on CAs, OCs and/or PRs, your score can change if they changed their tradeline like adding lates, adding a derog comment, changing a balance, etc.

I wouldn't give my debit card number either. However, some banks will issue a virtual card number that's good for a one-time use only. Check with your bank to see if they do that. Also, see if they are open to Western Union. That's same day.

[PatB]

Thanks!  My concern about paying them at all is that they won't give me anything in writing to say that it is paid in full and that they will delete.  Without that, they could take my money and still report me for the rest (and I have seen complaints that they have done exactly that).  I have my doubts about the legal force of an email to contest that.

This is in the end an annoyance, rather than a disaster.  It is the only negative on my report and it only took me down from almost 800 to 689.  I already have a good rate on my mortgage, I have been saving so that I can pay for my next car in cash, and I have all the credit cards I need. My inclination is to just let it go rather than give any money to a disreputable firm, but it bugs me seeing that  negative after I finally got my credit cleaned up a few years ago.

[llecs]

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@PatB wrote:

Thanks!  My concern about paying them at all is that they won't give me anything in writing to say that it is paid in full and that they will delete.  Without that, they could take my money and still report me for the rest (and I have seen complaints that they have done exactly that).  I have my doubts about the legal force of an email to contest that.

This is in the end an annoyance, rather than a disaster.  It is the only negative on my report and it only took me down from almost 800 to 689.  I already have a good rate on my mortgage, I have been saving so that I can pay for my next car in cash, and I have all the credit cards I need. My inclination is to just let it go rather than give any money to a disreputable firm, but it bugs me seeing that  negative after I finally got my credit cleaned up a few years ago.

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I agree...never pay a CA unless you had an agreement in writing first. You don't want to pay them and they "discover" a new remaining balance of $500 or something like that. If they had accepted it in writing that they'll delete in exchange for an agreed to payment, and if their only beef was a debit card, then that's an alternative. IMO, e-mail is OK. Many states have specific laws in the books about recognizing e-mail. But if wanting to tackle this, I'd send a DV letter first. I'd also contact the apartment and ask for a breakdown of those charges in detail if you disagree with it. If you agree after the CA responds to the DV, then retry the PFD.