Will it hurt my credit score if an account status shows as "Disputed"?

[Anonymous]

I sent a DV letter to a CA, and they responded with a letter requesting further documentation and in the letter, the CA indicated that in the interim, they have requested that the three major CRA's change the status of this account to "Disputed".

Does having "Disputed" on my CR affect my credit score or the way my credit report is reviewed in any way?  If so, how does it affect it and should I request that the CA change the status?

Please advise.  I thank you in advance.

[Shogun]

This is a tactic that the CAs are using more and more when dealing with a DV.  They are treating the DV as a dispute vs a debt validation.  This in turn keeps you from disputing it and them from answering the DV question.  While the TL is in dispute, it's put in limbo, it doesn't factor into your FICO score, however it actually invalidates your score due to the fact that the TL is still there, but not being factored.  You wouldn't be able to get a mortgage or such with an account in dispute.   The problem here is they are failing to follow your request for validation and throwing it into a dispute category.  You need to send them another DV advising them that this is not a dispute, however it is a request to validate the account.  Without seeing how your DV was worded however, it's impossible for me to tell if they have any merit in what they did.  Sometimes the wording of some DVs do bring the dispute process up.

[Anonymous]

Hey Shogun,

THAT IS EXACTLY WHAT I THOUGHT!  You actually confirmed my suspicions that they were just trying to delay the validation and that they were failing to follow my request for validation.  I actually already wrote them back indicating exactly what you said:  I indicated that this is not a dispute, and I reiterated that I am requesting that they validate the account. 

My initial letter was very specific; it indicated that the letter was a validation, and it specifically indicated that they provide me with the following:

• What the money they say I owe is for;
• Explain and show me how they calculated what they say I owe;
• Provide me with copies of any papers that show I agreed to pay what they say I owe;
• Provide a verification or copy of any judgment if applicable;
• Identify the original creditor;
• Prove the Statute of Limitations has not expired on this account
• Show me that they are licensed to collect in my state
• Provide me with their license numbers and Registered Agent

I KNEW that they were being negligent in their duties so I was even a bit more aggressive in my second letter reminding them that they must provide me with validation pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b), and that if they do not provide me with what I requested, I will be forced to take legal action.

Should I also request that they change the "disputed" status on my CRA's?

[JustinNguyen]

They don't have too give you there license number. And they don't need to answer  you that they are license or not. You copied from Internet and print out  , lol

[Anonymous]

JustinNguyen,

Actually, a CA is required to answer if they are licensed to collect if you are in a state that requires licensing.  I live in a state that does require licensing; therefore, they do have to verify if they are licensed to collect in my state.  Thus, if they are not licensed to collect in my state then they would be in violation of my state's collection laws, and the CA would be subject to prosecution and fines.

 And aren't we all doing our research from the internet?

[llecs]

Per FICO, the comment doesn't do anything to your score. FICO fully scores CAs and PRs while disputed.

As mentioned, they don't have to provide all of that stuff. You can ask for it, but they don't have to provide a detailed accounting, contract agreements, licensing info, proving the SOL expired or didn't expire, what the $$$ was for, etc. You can certainly ask for it, but per the FDCPA and DVing, they don't have to provide it. Now some states give you the option to ask for that info. Mass., for example, requires a detailed accounting if you live there and if you ask for it. Every state has their own laws.

[igids1]

Yes, Mass has some new rules on DV. I have been citing those laws in my most recent DVs.........I don't want to press my luck, but in every case so far, I have not received a single response, except to get a new dunning months later from the company they've sold the debt to, and I send another one. No reporting, no calls, nothing.

[Anonymous]

Thanks so much to IIecs and igids1 for your input.

Thus far I have had great success with including requesting those things in my DV letters, and the CA's either providing it or closing my collections.

Thanks again everyone.

[Anonymous]

Should I also request that they change the "disputed" status on my CRA's?

[llecs]

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@Anonymous wrote:

Should I also request that they change the "disputed" status on my CRA's?

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It doesn't do anything. I'd let it be.

When I started in the realm of repair posters would hark on CAs for not putting the dipute comment claiming they were disputing it via a DV. More and more CAs added that comment. Then some came along saying they can't put that comment, probably the same folks. It doesn't do anything.