Paid in full collection - I cannot get TU to udpate to closed

[xaustie]

I paid in full a medical collection end of 2015. Tried PFD but no go. The CA never updated (EQ and TU) after I paid. I disputed at EQ and TU early 2016 and they both updated. EQ updated to PAID/CLOSED. TU updated to PAID but it is still OPEN. I disputed again at TU over the phone to specifically update it to CLOSED. They completed their "investigation" for the second time but made no change to the status.

I assume the TU FICO 8 score will penalize me for the collection still reporting as OPEN, correct?

Any suggestions on how to get TU to update this so it is accurate?

Screenshot from karma:

[xaustie]

Don't know if it helps but here is the collection as shown for TU on CCT:

[Erick12]

What does it look like on your actual credit report directly from TU? They should have sent you a paper copy after they finished the investigation.

[xaustie]

---

@Erick12 wrote:

What does it look like on your actual credit report directly from TU? They should have sent you a paper copy after they finished the investigation.

---

Got this in the mail - dated 2/26/2016. My reports above are from a few days ago.

[RobertEG]

It is a bit unclear as to exactly what is/was reported, but the outcome will not affect scoring, and is more administrative than substantive.

If the debt is paid, that terminates forther collection authority, which is the definition of a Closed collection.

Thus, if the debt was paid and the balance is $0, the collection is Closed, and should promptly have been updated as such.  FCRA 623(a)(2).

However, closed collections are still scored as a derog, and thus lack of update to Closed is more to advise others that the collection is no longer active than to remove ti from scoring.  The fact that it is reporting as paid, $0 balance would clearly indicate that the colleciton is closed, and thus lack of that specific update is of little significance.

It is also possible, since the debt itself is of Open type (due when billied) that the continued reference to Open is not of the Open vs Closed status of the collection,but rather reporting of the type of debt that existed on the OC account.  The CRA and/or debt collector have verified, so they must have some basis.  You might call the debt collector for explanation of why they consider Open to be accurate reporting.....

If you believe their investigation was umreasonable, then you can either file a complaint with the CFPB or initiate civil action for lack of a reasonable investigation of your dispute.  You do not have recourse to private civil action asserting a violation for reporing of knowingly inaccurate information.  Only a government agency can bring such an action, so if that is your assertion,then you should begin by filing a complaint with teh CFPB and seek their intervention.

[xaustie]

Thank you RobertEG - this is awesome information. You are a wonderful asset for these forums and people like myself.

---

@RobertEG wrote:

It is a bit unclear as to exactly what is/was reported, but the outcome will not affect scoring, and is more administrative than substantive.

---

If the status of the collection as "OPEN" vs "CLOSED" will not negatively impact the automated scoring (TU FICO 8) then I am OK. That was my only real concern. I understand that if the report ever gets a manual review they will only care (simply speaking) that it was a collection (bad) but it is paid in full (better).

---

@RobertEG wrote:

It is also possible, since the debt itself is of Open type (due when billied) that the continued reference to Open is not of the Open vs Closed status of the collection,but rather reporting of the type of debt that existed on the OC account. 

---

 Don't think this is what is happening. The Karma site specifically thinks this collection is "Open". Karma specifically notes that other items are "Closed". I'm pretty sure "Account Type" is not confusing the Karma category designation in regards to status.

---

@RobertEG wrote:

If you believe their investigation was umreasonable, then you can either file a complaint with the CFPB or initiate civil action for lack of a reasonable investigation of your dispute.  You do not have recourse to private civil action asserting a violation for reporing of knowingly inaccurate information.  Only a government agency can bring such an action, so if that is your assertion,then you should begin by filing a complaint with teh CFPB and seek their intervention.

---

 As I mentioned above, I only care if this status is erroneous (it  is) AND if it is negatively impacting my score. You stated it is not so I am good! Good info though on how to escalate if need be.

[xaustie]

Well this stupid issue with TU and a collection mistakenly being reported as open has been resolved. I filed an online complaint with CFPB. I stated that this was a violation of FCRA 623(a)(2). I stated that I believed I was being harmed in that some credit monitoring sites were reporting this collection as open. I was filing the complaint with CFPB because three disputes with TU on this matter had failed to resolve it. This is the fair resolution that I requested from CFPB, "The fair resolution is that TransUnion correct this collection by adding Date Closed: 12/10/2015'. If they cannot do this then they should delete the collection from my report." In about a week I received an email from CFPB stating that TU had removed the collection.