topic Re: Invalid Bankruptcy reporting causing temporary score decrease in General Credit Topics

Invalid Bankruptcy reporting causing temporary score decrease

user979797 — Sat, 02 Aug 2025 15:17:00 GMT

Hi all. So my oldest credit card account has reported my account closed due to bankruptcy and this has caused my scores across all 3 bureaus to drop significantly. I disputed this with the bureaus and the dispute came back as valid and verified by the data furnisher.

I then contacted the bank and it took hours on the phone to finally get to the right department and a supervisor realized their error and reopened my account. The supervisor stated they would be submitting a manual change request to the bureaus to have this information updated and corrected however they said to allow 30 days for this to happen.

I am worried that my other creditors may see this when they do a review and I could start losing accounts, having limits reduced or some other negative action taken due to this temporary mistake.

Is there anything I can do to prevent this? Will other creditors be able to tell that in fact I have not filed bankruptcy? Will they wait another month or act immediately as soon as they see this information? Would calling them do any good?

Thank you so much for any advice on this matter....what a dang mess.

Re: Invalid Bankruptcy reporting causing temporary score decrease

NoHardLimits — Sat, 02 Aug 2025 15:58:21 GMT

Perhaps add a consumer statement to each bureau? You'll need to remember to remove the statement after the problem is cleared up.

Re: Invalid Bankruptcy reporting causing temporary score decrease

user979797 — Sat, 02 Aug 2025 16:11:39 GMT

Thank you so much. I didn't know I could do that.

Before I saw this comment I decided to dispute the account with all 3 bureaus and I put in the comments of each one that the problem is being corrected.

I am hoping the dispute doesn't cause delays or problems since the dispute process is what started this mess to begin with. I am hoping the supervisor made detailed notes on my account so that whomever gets the disputes will realize it was a mistake instead of going off their internal system. I was just afraid of other creditors closing etc and hoped that with dispute in progress they wouldn't act

I sure hope this gets resolved. What a mess.

Re: Invalid Bankruptcy reporting causing temporary score decrease

zerofire — Sun, 03 Aug 2025 05:03:48 GMT

This is clearly a unique mistake. If the lender listed it in their account notes then it is highly possible other banks will ignore it. The biggest concern is if an actual BK gets listed on your report. This is because all of your existing creditors are required to be included in the BK process. It would be kind of concerning to a creditor if you did not talk with them before you filed. As for what the others will do. It depends on the lender. Some will notice and bookmark it. Some will miss it completely for some time. And the worst will notice and start the decoupling process aka abuse. I would definitely encourage the bank to fix the reporting and hopefully it will outrun your other lenders concerns.

Re: Invalid Bankruptcy reporting causing temporary score decrease

user979797 — Sun, 03 Aug 2025 15:31:36 GMT

Thank you for the insightful reply @zerofire. I've been getting alerts from multiple credit monitoring services all telling me a trade line bankruptcy has been reported and that my score has significantly decreased.

The disputes are not yet showing on any of my reports but I'm hopeful that when they do my creditors will be able to see that the info is being disputed and will be corrected within 30 days according to the creditor that is mis reporting.

There are several cardsI have that I use often and I am worried that they are being alerted of this situation so I hope your right about most banks ignoring the info. Regardless I will continue to worry until this is resolved. I was getting ready to do my semi annual CLI requests this month but I will for sure be holding off until my credit is restored.

I just don't want to lose any of my accounts. Ive worked hard building up my limits and building good relationships with all of them and losing even one would be a major blow for me. So I'm just waiting and hoping and I'll update this post when the info gets corrected and if anything bad happens before it does.

Re: Invalid Bankruptcy reporting causing temporary score decrease

zerofire — Sun, 03 Aug 2025 17:34:24 GMT

Disputes on the reports take a minimum 60 days and more commonly 90 days. That also assumes that the lender getting the dispute is cooperating. You already noticed that some lenders are happy to do auto confirmation of bad info without looking twice.

Re: Invalid Bankruptcy reporting causing temporary score decrease

crystal626 — Sun, 03 Aug 2025 23:41:30 GMT

If they're not willing to fix their error immediately, I would call an attorney that specializes in the FCRA.

Re: Invalid Bankruptcy reporting causing temporary score decrease

zerofire — Mon, 04 Aug 2025 11:03:46 GMT

Good luck finding one. I am looking for one and cannot find one locally. Your more likely to have to go pro se and represent yourself in these kinds of cases.

Re: Invalid Bankruptcy reporting causing temporary score decrease

user979797 — Sat, 09 Aug 2025 13:47:16 GMT

Update. They have updated all reports and removed the bankruptcy info as well as restored my payment history and changed my status to current. Eq and Ex both show account open and TU is showing all correct info except under status still saying account closed. It looks like they just forgot to change that one part on this one report. Scores have been restored.

My statement cuts in a week and if my TU account status doesn't change back to open after they report a balance then I'll go another round with them and see if they can get that corrected. But I've spent hours dealing with this mess and really hope I don't have to call them again. We will see.

Thank you to everyone who gave me advice on this issue I really appreciate it.

Re: Invalid Bankruptcy reporting causing temporary score decrease

ocheosa — Sun, 10 Aug 2025 18:32:47 GMT

@user979797 wrote:
Hi all. So my oldest credit card account has reported my account closed due to bankruptcy and this has caused my scores across all 3 bureaus to drop significantly. I disputed this with the bureaus and the dispute came back as valid and verified by the data furnisher.

I then contacted the bank and it took hours on the phone to finally get to the right department and a supervisor realized their error and reopened my account. The supervisor stated they would be submitting a manual change request to the bureaus to have this information updated and corrected however they said to allow 30 days for this to happen.

I am worried that my other creditors may see this when they do a review and I could start losing accounts, having limits reduced or some other negative action taken due to this temporary mistake.

Is there anything I can do to prevent this? Will other creditors be able to tell that in fact I have not filed bankruptcy? Will they wait another month or act immediately as soon as they see this information? Would calling them do any good?

Thank you so much for any advice on this matter....what a dang mess.

This post/thread is very confusing as it reads as if you do not have a bankruptcy on your reports. But just read a new post from this morining which states

"My BK7 was discharged march 2018."

"What are my chances of getting approved if I cold app with the over 7 year old BK reporting on me?"

Ch7 is known to report for ~10 years (< 1-6mos with EEs ).

Is it just this account that you are disputing? Very confusing.

https://ficoforums.myfico.com/t5/Credit-Cards/Question-about-Citi-custom-cash-post-BK7/m-p/6836958

Re: Invalid Bankruptcy reporting causing temporary score decrease

user979797 — Mon, 11 Aug 2025 00:14:22 GMT

@ocheosa BK7 was discharged back in March 2018. This account was not included in BK7.. it had a zero balance at the time I filed back then and remained open and in good standing until two weeks ago. This bank just reported a recent BK, due to an error on the banks part, and ruined my scores and closed my account. They have corrected the error and the account is now open again and back in good standing. I have not filed for BK again this was a error on their part they apologized and corrected the error.

Re: Invalid Bankruptcy reporting causing temporary score decrease

Jeffster1 — Mon, 11 Aug 2025 05:47:13 GMT

@user979797 I'm with @ocheosa . Something doesn't make sense with what you posted in this thread when taking into account your previous posts.

You got your DC in 2018. A 7 reports for 10 years. Regardless whether that card was IIB, and regardless the notation, there would still be a BK reporting as a public record until 2028, or ten years from when you filed (minus any potential EE).

Your creditors would already know about your BK. While the notation on the card not IIB is not accurate,there is still a BK reporting.

Re: Invalid Bankruptcy reporting causing temporary score decrease

user979797 — Wed, 13 Aug 2025 10:47:26 GMT

@Jeffster1 my bk7 is still reporting from 2018. This post is about my oldest card reporting that my account was included and closed as of July of this year. It was not now or ever included. My scores tanked and the account was closed last month due to their error.

When I contacted them they said it was due to a NEW bk7 reporting and that the account was included in this NEW BK7. It was not and I have NOT filed for bk7 again. After realizing the mistake they apologized and corrected the error. The account is open again and reporting has been corrected and my scores have been restored to what they were before they incorrectly reported this account closed and included in a new trade line bk7. With their reporting they made it appear that a new trade line was reporting a new bk7 recently filed.... when that was never true.The account should have never been closed due to a new bk7 as their system and representatives were telling me was the reason for the closure.

I hope this clears this up sorry for any confusion I probably should have labeled this post differently. it was super confusing for me as well and I spent hours trying to get this mess corrected. I'm just grateful they fixed the reporting so quickly because disputing was of no help on this.

The account is reopened and reported as opened now and payment history on the account is restored and the included in bk7 notes on the account have been correctly removed and my scores are back to normal.

Re: Invalid Bankruptcy reporting causing temporary score decrease

AndrewF — Mon, 18 Aug 2025 23:28:52 GMT

@NoHardLimits wrote:
Perhaps add a consumer statement to each bureau? You'll need to remember to remove the statement after the problem is cleared up.

You can set them to expire after a period of time in case you forget to delete it. You definitely don't want the word "bankruptcy" anywhere on a credit report, including a statement, if you can avoid it.

I just didn't bother trying to explain my bankruptcy at all. It's still a bankruptcy. You don't get points for saying "Yeah, but my no good two-timing backstabbing cheating ex didn't pay his part of the bills and I had to file bankruptcy." but you might forget to remove the statement after the bankruptcy falls off.

Wouldn't it be horrible if a landlord or someone checks your credit and reads that after the bankruptcy isn't even reporting anymore?