After Dispute Score Decreased

[jhumbertof]

Recently, I used the tools available through myfico to dispute 3 accounts (1 creditor) that appeared on my credit report. I mailed the dispute letters into Transunion and Equifax.

Transunion notified me, via mail, that the accounts no longer appear on my credit report. Meanwhile, I received an alert from scorewatch telling me that my Equifax fico score dropped by 45 points. When I looked to see which changes occurred, it showed that the 3 accounts I disputed had been updated to state "consumer is disputing." I purchased an updated Equifax report and that is the only change.

Can someone explain what is happening? Is this permanent? If the accounts are removed (as they have been for Transunion and Experian) will my score rebound to my original score or increase beyond that?

[Anonymous]

Your score decreased because thh collections had probably not been updated in a long time. Now that they have updated to a more recent date it will make your score drop.

If the accounts are deleted you will almost always see a jump in your score unless it is your oldest account being deleted. The aging of your accounts has alot to do with your scoring.

I hope this helps.

[Anonymous]

jp is correct.  When you disputed the accounts, the collection agency responded with a verification.  Upon the verification, the CRA posts the more recent "DATE REPORTED" which in FICO terms makes the collections seem more recent.  This is one of the inherent risks you run when you do disputes.

If you can manage a PFD or other deletion arrangement, you will see the score go back up more than it went down.  If not, then you are going to suffer with the new reporting date for some time.