topic Re: $1 Derog - Question in General Credit Topics

$1 Derog - Question

Anonymous — Tue, 08 Jan 2008 04:26:52 GMT

Hi, it's me again with this crazy $1 derog from my old CU. I went snooping into my EX file again and found something that I think is odd.

In the status it says:

Status: Paid,Closed/Account charged off. $379 written off.

Then it says:

Status Details: This item was verified and updated on Aug 2005. (Off the top of my head I think I paid it in Oct 2005.)

Which is correct? Technically I guess I paid $378 instead of $379, but they definitely didn't write off the whole amount. Can I dispute this? FYI the first 30 day late was Oct 04, 90 days Dec 04, C/O April 05.

Thanks!

Re: $1 Derog - Question

SmartCookie — Tue, 08 Jan 2008 05:28:28 GMT

You could dispute it as 'balance incorrect'. Thing is it might update with $1 balance...

I would think about writing a GW letter to your CU explaining that you have just realized that they have been reporting incorrectly for 29 months, and since this was paid (forget the buck for a moment) you would appreciate their GW in either removing all derog info or deleting the entire TL 'in the spirit of compromise' since this incorrect reporting caused you adverse action etc.

Re: $1 Derog - Question

Anonymous — Tue, 08 Jan 2008 05:34:43 GMT

SmartCookie wrote:
You could dispute it as 'balance incorrect'. Thing is it might update with $1 balance...

I would think about writing a GW letter to your CU explaining that you have just realized that they have been reporting incorrectly for 29 months, and since this was paid (forget the buck for a moment) you would appreciate their GW in either removing all derog info or deleting the entire TL 'in the spirit of compromise' since this incorrect reporting caused you adverse action etc.

Hi SC,

Thanks for the reply. EQ is the only CRA that gives the $1 and they're my lowest score by far. I have been trying to pay the $1 to get it removed, but the CU mgr/vp just tells me "don't worry about it." I keep harping on this $1, but I really want my CR to be as clean as possible. I'm leaning toward sending a $1 cashiers check with a GW letter attached, sent CMRRR. (I don't think these ppl like me much at all.) Btw, it's $1 on a $500 TL.

Thanks!

Re: $1 Derog - Question

SmartCookie — Tue, 08 Jan 2008 05:52:51 GMT

Ahhh I see. Ya'd think they would stop reporting a balance if they told you not to worry about it!

Definitely a GW situation but think it over on the CMRRR.

EQ reports the payment but the others just show it written off... no payment??

Re: $1 Derog - Question

Anonymous — Tue, 08 Jan 2008 06:20:07 GMT

SmartCookie wrote:
Ahhh I see. Ya'd think they would stop reporting a balance if they told you not to worry about it!

Definitely a GW situation but think it over on the CMRRR.

EQ reports the payment but the others just show it written off... no payment??

It depends on where I look. I just pulled credit secure to try to get a nice glimpse at all three. TU isn't reporting on here at all. EX is on the left, EQ on the right. I have some time tomorrow and was seriously considering going into the CU to talk to this guy personally, but that kind of seems like a no-no since I need everything in writing. Perhaps he'd consent to sending a letter in writing as to the terms of our discussion. (I doubt it.)

Acct Type: Unsecured Loan Revolving or Option

Acct Status: Closed Open

Monthly Payment: $15.00

Date Open: 7/1/2002 7/1/2002

Balance: $1.00

Terms: Unknown

High Balance: $1.00

Limit:

Past Due: $1.00

Payment Status: Paid, was a charge-off Bad debt & placed for collection & skip

Comments: CHARGED OFF ACCOUNT/LINE OF CREDIT

Re: $1 Derog - Question

SmartCookie — Tue, 08 Jan 2008 06:32:14 GMT

I'd say TU isn't reporting at all but on your 'real' reports, I'm sure EX and EQ have more detail.

You have to make a judgement call. Yes, 'everything in writing' but if I lived that close... I'd go by and speak to the guy, and show him this! He can remove the info, he doesn't need to send the CRAs anything at all. I'd be nice and remind him that you were told not to worry about the buck... but you have a major derog (EQ)! Ask him point blank if he will please delete all of it because you thought it had been done considering they told you not to worry... and because of the damages of the inaccurate reporting. You'll be right there smiling and asking him for help... hopefully he won't be an arse over a dollar in this situation, and see the error and remove the reporting as a 'courtesy' even though you could sue for damages.

I would break the rules and drop on on him....

Re: $1 Derog - Question

Anonymous — Tue, 08 Jan 2008 06:35:03 GMT

I could sue? (No, I don't want to sue, please don't take it that way.) On what grounds? I DO owe the dollar officially, even though I was told to forget about it.

(Thanks again for taking the time with me on this one. I know anyone who would manually review would see it's a DOLLAR, but with scores like EQ 618 and 657, 662 on the others, it's obvious that this is a problem.)

Re: $1 Derog - Question

SmartCookie — Tue, 08 Jan 2008 06:45:57 GMT

WhirledPeasPlease wrote:
I could sue? (No, I don't want to sue, please don't take it that way.) On what grounds? I DO owe the dollar officially, even though I was told to forget about it.

(Thanks again for taking the time with me on this one. I know anyone who would manually review would see it's a DOLLAR, but with scores like EQ 618 and 657, 662 on the others, it's obvious that this is a problem.)

You'd have to prove damages due to the inaccurate reporting... they led you to understand that that dollar was no longer a balance due to them. I wouldn't sue either, but just them knowing you could is an ace in your pocket. Got adverse action reasons for cc application decline, etc? I do like to try to settle things amicably as well though wherever possible.

See what damage as little as a dollar can do? I'm with ya. If they were not horrible when things were good and they don't hard INQ for new banking accounts, I'd entertain the thought of opening a savings account there before turning on the assertive charm to that bigwig.

Re: $1 Derog - Question

Anonymous — Tue, 08 Jan 2008 06:50:39 GMT

SmartCookie wrote:

WhirledPeasPlease wrote:
I could sue? (No, I don't want to sue, please don't take it that way.) On what grounds? I DO owe the dollar officially, even though I was told to forget about it.

(Thanks again for taking the time with me on this one. I know anyone who would manually review would see it's a DOLLAR, but with scores like EQ 618 and 657, 662 on the others, it's obvious that this is a problem.)

You'd have to prove damages due to the inaccurate reporting... they led you to understand that that dollar was no longer a balance due to them. I wouldn't sue either, but just them knowing you could is an ace in your pocket. Got adverse action reasons for cc application decline, etc? I do like to try to settle things amicably as well though wherever possible.

See what damage as little as a dollar can do? I'm with ya. If they were not horrible when things were good and they don't hard INQ for new banking accounts, I'd entertain the thought of opening a savings account there before turning on the assertive charm to that bigwig.

Well ahhh ha ha. I happen to have TWO denial letters from the past 7 days, 1 for a new CC and 1 for a CLI which both state this deliquency as an issue. However, the Home Depot MC denial lists ONLY the "A delinquent credit obligation, either paid or unpaid, was recorded on your credit bureau report." (I'm trying on ski masks as I type! Ha! Kidding of course.)

Thank you!

Re: $1 Derog - Question

SmartCookie — Tue, 08 Jan 2008 07:09:37 GMT

Bring those along! Tell him you still have a chance to have the companies recon the application if he removes what caused these AA declines.

I'm not saying to go bat pooh crazy on him... but that might help him come to a decision to GW and delete the TLs.

Don't run out tomorrow if you aren't prepared with what you want to say and how you want to present this... you might decide later on that you want to prepare all this and write.

But if you do go tomorrow, good luck and let us know how it went!!!

Re: $1 Derog - Question

Anonymous — Tue, 08 Jan 2008 23:38:30 GMT

SC,

Okay here goes... I was lucky to get ahold of a woman who I dealt with a LOT while I was a customer and she remembered me just by name (WOW). She's now the VP at the CU. Some of what is included in the letter was at her request.

01/08/08

Regarding: Account Number XXXXXXXX

PERSON #1

XXXXXXXX Federal Credit Union
Address
City, State ZIP

Dear XXXXX,

This letter is a follow-up to our phone conversation on Tuesday, January 8, 2008. I am writing this letter for two purposes. The first is to have XXXXX acknowledge that as of the receipt of the enclosed check for $1.00 my account will be considered paid in full. The second is to request that XXXXX consider not just revising, but possibly removing the derogatory information that was placed on my Equifax credit report. In late 2005 I was told by PERSON #2 that I should not worry about paying the outstanding dollar. I contacted PERSON #2 in June of this year to try to find a way to get this information corrected. I did not receive a return phone call. I have been denied credit based on this account by at least two creditors (XXXXX and the XXXXXXXX).

In addition to the above information, I would like to include a thank you for the excellent customer service I received from XXXXX. In all honestly the year 2005 was a wake-up call for me with respect to my credit and I have worked diligently to make sure every bill is paid on time as well as managing my use of credit as a whole. Thankfully responsible credit management of my current accounts, despite the above referenced account, shows my credit worthiness as excellent.

I am also requesting that XXXXX send me a letter stating the actions that you have taken to correct or remove the status of account number XXXXXXX from my credit report. I have 30 days from XX/XX/XX to have my report corrected to have XXXXX reconsider their original decision. Time is definitely an issue for me as I work to prepare to put my house on the market and to secure financing for my next home purchase.

Very hopefully yours,

WHIRLED PEAS

ADDRESS

CITY, ST ZIP

Enc: Check #XXXX for the amount of $1.00

Re: $1 Derog - Question

SmartCookie — Wed, 09 Jan 2008 00:01:54 GMT

This is awesome! What the heck do you need anyone's help for here? Love it! Great work!

Minor changes:

01/08/08

Regarding: Account Number XXXXXXXX

PERSON #1
XXXXXXXX Federal Credit Union
Address
City, State ZIP

Dear XXXXX,

This letter is a follow-up to our phone conversation on Tuesday, January 8, 2008. I am writing this letter for two purposes. The first is to have XXXXX acknowledge that as of the receipt of the enclosed check for $1.00 my account will be considered paid in full. The second is to request that XXXXX consider not just revising, but ~~possibly~~ removing the derogatory information that was placed on my Equifax credit report. In late 2005 I was told by PERSON #2 that I should not worry about paying the outstanding dollar. I contacted PERSON #2 in June of this year to try to find a way to get this information corrected. I did not receive a return phone call. I have been denied credit specifically based on this account by at least two creditors (XXXXX and the XXXXXXXX).

In addition to the above information, I would like to include a thank you for the excellent customer service I received from XXXXX. In all honestly the year 2005 was a wake-up call for me with respect to my credit and I have worked diligently to make sure every bill is paid on time as well as managing my use of credit as a whole. Thankfully responsible credit management of my current accounts, despite the above referenced account, shows my credit worthiness as excellent.
I think the above and below paragraphs flow better reversed, JMO.
I am also requesting that XXXXX send me a letter stating the actions that you have taken to correct or remove the status of account number XXXXXXX from my credit report. I have 30 days from XX/XX/XX to have my report corrected to have XXXXX reconsider their original decision. Time is definitely an issue for me as I work to prepare to put my house on the market and to secure financing for my next home purchase.

Very truly ~~hopefully~~ yours,

WHIRLED PEAS
ADDRESS
CITY, ST ZIP

Enc: Check #XXXX for the amount of $1.00

Re: $1 Derog - Question

Anonymous — Wed, 09 Jan 2008 00:18:46 GMT

Okay, those changes have been made, along with the 'this year' changed to 2007. (Duh, we had a birthday!)

Thank you thank you thanks! I can't take all the credit (ha!), I read over a few GWs before I composed this one.

SmartCookie wrote:
This is awesome! What the heck do you need anyone's help for here? Love it! Great work!

Minor changes:

01/08/08

Regarding: Account Number XXXXXXXX

This letter is a follow-up to our phone conversation on Tuesday, January 8, 2008. I am writing this letter for two purposes. The first is to have XXXXX acknowledge that as of the receipt of the enclosed check for $1.00 my account will be considered paid in full. The second is to request that XXXXX consider not just revising, but ~~possibly~~ removing the derogatory information that was placed on my Equifax credit report. In late 2005 I was told by PERSON #2 that I should not worry about paying the outstanding dollar. I contacted PERSON #2 in June of ~~2007~~ to try to find a way to get this information corrected. I did not receive a return phone call. I have been denied credit specifically based on this account by at least two creditors (XXXXX and the XXXXXXXX).

Re: $1 Derog - Question

SmartCookie — Wed, 09 Jan 2008 00:25:53 GMT

Nice catch, sorry I missed that. It takes a village...!

Re: $1 Derog - Question

Anonymous — Wed, 09 Jan 2008 00:27:37 GMT

Re: $1 Derog - Question (Update)

Anonymous — Sat, 09 Feb 2008 16:08:36 GMT

WhirledPeasPlease wrote:
Hi, it's me again with this crazy $1 derog from my old CU.

Well it seems I've had a small bit of success! I just checked my EQ report and saw that I no longer have a $1 derog. They updated to paid/was a charge-off and did not update the DOLA. The result? FICO score jumped 13 points -- I'll take it.

EX did not show a score change, but it didn't look as though it was a ding on the report in the first place (despite what I originally posted).

Oddly enough I pulled my AMEX CS scores and the jump for EQ was FIFTY-SIX points -- from 640 to 696. As predicted the EX AMEX CS did not change (remained 689).

This account does not appear on TU. TU has, for the most part, historically been my highest. AMEX CS is 704.

My new goal? 700+ FICOs by June!

-Happy Peas