Should I dispute this or leave alone?

Anonymous · ‎05-13-2015

There is a Wells Fargo/Mattress Firm baddie on my reports. It was sold to another lender, and I settled with them a few months ago (they did not report to the CRAs at all). On EQ & TU the OC account shows as a closed CO with comments that it was purchased/sold, and $0 balance. On EX however, it has the same status/notes but it says recent balance $1,199 as of 11/2011. If I dispute this, will a recent update of a negative account hurt more than having it show a balance? The last time it was reported was 11/2011. Do the comments "purchased by another lender" somehow negate the factoring of any balance that's listed?

Thanks in advance

Rebuilding69 · ‎05-13-2015

If the account was sold to a CA, shouldnt it have been deleted by the OC afterwards? Whether the CA chooses to list or not is their perogative.

Asking myself to make sure I understand hehe.

Anonymous · ‎05-13-2015

@Rebuilding69 wrote:
If the account was sold to a CA, shouldnt it have been deleted by the OC afterwards? Whether the CA chooses to list or not is their perogative.

Asking myself to make sure I understand hehe.

it is my understanding that the OC can continue to leave their trade line but once its sold the balance needs to be updated to $0

gdale6 · ‎05-13-2015

@Anonymous wrote:
There is a Wells Fargo/Mattress Firm baddie on my reports. It was sold to another lender, and I settled with them a few months ago (they did not report to the CRAs at all). On EQ & TU the OC account shows as a closed CO with comments that it was purchased/sold, and $0 balance. On EX however, it has the same status/notes but it says recent balance $1,199 as of 11/2011. If I dispute this, will a recent update of a negative account hurt more than having it show a balance? The last time it was reported was 11/2011. Do the comments "purchased by another lender" somehow negate the factoring of any balance that's listed?

Thanks in advance

They needed to update it to a 0 balance but since it hasnt reported since 2011 I suggest you leave it alone as long as you have the available credit to absorb that balance, its most likely affecting your utilization category. If you dispute it with the CRA or even a direct dispute its going to update and the status date will come current resulting in a Fico score drop. I would begin a campaign of GW letters to them asking for total removal of the TL, this may or may not be successful since they took a loss in selling the debt.

gdale6 · ‎05-13-2015

@Rebuilding69 wrote:
If the account was sold to a CA, shouldnt it have been deleted by the OC afterwards? Whether the CA chooses to list or not is their perogative.

Asking myself to make sure I understand hehe.

The OC is under no law requiring that they delete their TL when they sell a debt, what they have to do by law is report accurate info which would include updating the balance to 0. The OC takes a big loss on you when they sell the debt its highly doubtful they would be in the mood to delete their TL immediately after selling the debt. As time goes by they may be more willing to do a GW deletion.

RobertEG · ‎05-13-2015

The problem with not correcting is that a party who pulls your credit report from only that CRA will see an OC account with an existing balance, which indicates that the debt is still delinquent. It could affect their decision making in a manual review.

Additionally, if a revolbing account, the balance may be included in your current % util calculation.

Personally, I would get it corrected, but do so by way of an informal call to the creditor, reminding them of their obligation under FCRA 623(a)(2) to promptly update their reporting as necessary so as to maintain its current accuracy. That will avoid a pending dispute flag. I would suffer any affect on scoring.

Anonymous · ‎05-13-2015

Thank you both for your responses. It is something I need to consider as if I hope to clean up enough to be able to apply with my husband for our first mortgage within the next year if possible. I think a good plan of action is to try for GW deletions and if no success after a little while, contact them informally for a correction.