Score dropped because of a dispute?? **UPDATE**

[Anonymous]

I disputed the below account because it should be listed as "IIB" and not a "charge off-bad debt" and I just got a Score Alert with the below information.   I don't understand...my score dropped 16pts!  Can someone explain why my score would drop because of a dispute? When the investigation is completed will by score go back up?

Account opened: 3/2004
Description: Consumer disputes - reinvestigation in process
Charge off account
Fixed rate

	Previously reported	Newly reported
Balance:	$4,831	$4,831
Past due:	$6,550	$6,550
Status:	Bad Debt; Placed for collection;	Bad Debt; Placed for collection;
Last activity:	5/1/2004	5/1/2004
High credit:	$4,831	Not Reported
Description:	Charge off account Amount in high credit is original charge-off amount Fixed rate	Consumer disputes - reinvestigation in process Charge off account Fixed rate

[Anonymous]

Whoa.  I literally just made the exact same post! 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Investigation-Score-Drop/td-p/653704

[Anonymous]

---

@Anonymous wrote:

Whoa.  I literally just made the exact same post! 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Investigation-Score-Drop/td-p/653704

---

Wow! Hopefully we will get some feedback on this because I wanted to cry when I saw my score dropped 16 pts.  

[Anonymous]

You lose points because the balance and credit limit are removed during a dispute.

[Anonymous]

Thank you, guiness.  Mystery solved. 

[Anonymous]

---

@Anonymous wrote:

You lose points because the balance and credit limit are removed during a dispute.

---

Thanks guiness!  Even though this is a charge off is the balance counting toward my uti?

[Anonymous]

If it is a CO that is still owned by the OC, yes it does.  If it is not owned by them it should show a 0 balance.

If they do not own it and it is still reporting a balance, yes it is counting toward your utilization but, it needs to be reported as 0.

[tray]

All I can tell you is everytime" dispute by consumer meets FCRA requirements" was on any of my credit reports my cs always tanked especially on my TU report as soon as these comments were removed then my score went back up, so I believe no matter what those words are deadly on a credit report.

[Anonymous]

I too have recently experienced this nightmare of losing points just when I was starting to creep up in the 680's. Three weeks ago, I disputed 5 old paid collection acts on my EQ and EX report that were still showing as unpaid CO. So the next thing I knew, my score had TANKED from 684 to 637 WHOA, almost 50 points only on EQ and I  assumed that it cost me 10 puts per dispute. My TU actually increased from 669 to 697 (3/1). I was told by a MY FICO CSR that the disputes did in-fact contribute to the lowering of my score and the hit was so big because they all got posted at the same time basically. MY FICO CSR also stated that once the dispute was over (30-45 days), I should see my score go back up, however I doubt that I will get all of my points back that were lowered from the dispute.

Sorry to hear someone else, or a few of us are in the same boat. I guess it's only a temporary score ding!

[AndySoCal]

A slight correction when an account is in dispute it is not included in the FICO score calculation.