Whenever you have issues of inaccurate reporting, even if the furnisher is felt to be knowingly reporting inaccurate information, you must first dispute the matter with them, providing them the opportunity to correct the innacuracy.
The legal reason is that a consumer does not have the right under the FCRA to bring their own private civil action against a party for willful reporting of inaccurate information. While the willful reporting of inaccurate information is a clear violation of FCRA 623(a)(1), only federal agencies have the right to bring civil action for such misreporting.
A consumer can only bring cvil action for lack of reasonable investigation of a dispute over the accuracy of the reporting, thus providing the furnisher the opportunity to correct the inaccuracy before it can be brought before the courts. See FCRA 623(e)/
In both your prior issue with the dispute of the DOFD and now your issue with the accuracy of their reporting of account type, you must obtain the results of their investigation before proceeding with legal action asserting lack of a reasonable investigation.
You are thus following the proper preliminary procedure.
It is also possible to file a complaint with the CFPB if you feel that you can document willful misreporting on their part. While the CFPB rarely brings civil action based on a single consumer complaint,, it is possible that they could decide that your situation warrants civil action.
