"KD" reporting on Experian long after debt is settled (Midland)

[Pigeyex]

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@Shogun wrote:

Well, first off, this is pretty much a moot point.  As a CA, Midland is not allowed to post a monthly derog... PERIOD.  That is reserved for the OCs only.  File off a complaint on them that they are supplying monthly derogs as a CA.  This is a big NO NO.

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Are you sure?  It shows up as a "KD" in the one month on my Experian FAKO report, and my other MIdland settled collection for that matter has a single "KD" in March of 2012 (I think that's when I settled that one).  My myFICO Equifax report doesn't have the monthlies for the two Midland TLs -- just that it was settled.

I would looooooove to get these two Midland TLs off of my reports COMPLETELY, if at all possible.  If I can use this a hammer to try to get that done, that'd be great but I want to make sure I'm on solid ground.  Should I maybe start with a dispute phone call to Experian and ASK them where this Midland "KD" is coming from -- is it coming from Midland, or is that something internally that Experian is showing?

thanks,

Pigeye

[Shogun]

Experian is the only CRA that uses KDs.  Now if you are looking at a 3rd party report,(which myFICO supplies), it can get skewed.  I'd pull a report directly from EX and see exactly what they are posting.  Because CAs are not allowed to post monthly derogs,,, period.  They would even have to be reporting as a Factoring Company for there even be that category to have a monthly derog because collections don't even have a monthly input.

[Pigeyex]

It is the Experian-produced report that is clearly showing the "KD" in one month of each of my two Midland tradlines that show up there.

Should I start with Experian, or directly dispute with Midland?

[Pigeyex]

[Pigeyex]

Here's the other, more-recent one:

[Shogun]

I'm not seeing those... show's a broken image or something.

[VinnyVee]

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@Shogun wrote:

Experian is the only CRA that uses KDs.  Now if you are looking at a 3rd party report,(which myFICO supplies), it can get skewed.  I'd pull a report directly from EX and see exactly what they are posting.  Because CAs are not allowed to post monthly derogs,,, period.  They would even have to be reporting as a Factoring Company for there even be that category to have a monthly derog because collections don't even have a monthly input.

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Quick question on this one... I am in a similar situation where a CA has been reporting KD since I had an account go into collections with them. What kind of trouble would they get in for this? I saw you said in an earlier post to contact the CFPB regarding this situation... what would an outcome from this scenario generally look like?

[Shogun]

It depends on what exactly is being reported and it has to do with the monthly derogs.  When reporting as a CA, there is not even a place for them to report a monthly derog.  It's when they file as a Factoring Agency that gives them this option to even report it.  And a CA cannot report monthly derogs.  You need the factual report to make absolutely sure what is being reported.

[VinnyVee]

Got ya. I went on ahead and reported it to the CFPB, since they're not able to do that. The company that agreed to a Pay for Deletion has been  quite shady in their practices lately, so I've been contemplating what I need to be do. This KD situation might help out quite a bit. i found it strange that the only other collection on my record was only reported the first time it went into collections, but never again.

[Pigeyex]

***UPDATE***

Well, poop.  Here is their response, via the CFPB dispute just now.  Looks like I struck out on this:

Response Mr. (Pigeye), you write that Midland Credit is reporting inaccurate information on your consumer credit files, namely listing the account as a "key derogatory." Midland Credit is not reporting the account as "key derogatory." The credit bureaus determine which accounts should be marked as a "key derogatory" and marks them as such. In addition, it is Midland Credit's understanding that only the consumer can see the notation of "key derogatory." You are encouraged to communicate directly with the credit bureaus should you have any further concerns regarding the "key derogatory" notation. Midland Credit's business records indicate that it is accurately reporting the above-referenced account to the credit reporting agencies. Please see Midland Credit's comprehensive response letter, which is attached for additional information.