topic Re: Dispute this 'Open' Collection? in Rebuilding Your Credit

Dispute this 'Open' Collection?

XxRaVeNxX — Sun, 26 Aug 2012 16:43:43 GMT

In the midst of looking to refinance my vehicle(before being approved), once reason I was told I was denied, was that I didn't make enough...which didn't make sense to me. How do I not make enought to get a better interest rate on a current loan, that I've never been late on, and pay less money. Then I pulled the report that they did, and I saw two open accounts that should be in collections, but showing pays as agreeed, and it is apart of my monthly payments.($300 extra) It was through a local personal finance company that financed my car, I defaulted many years ago, car was repoed, local attorney took over the accounts.(Even though credit report doesn't show the repo, nor that an attorney took over the account.(There's more than one.) And I've been paying him $100 every month. Owe about 1500 left, and should pay it off around tax time.... Should I dispute this account, and state it isn't open. Or I should just leave it alone, cause there's a possibility it will show up in collections, along with the repo. Or should I just go down, to the finance company, and just ask them to remove it, mark it as closed and continue paying the attorney...

Re: Dispute this 'Open' Collection?

Anonymous — Sun, 26 Aug 2012 17:05:24 GMT

The account was opened in 2004 and last reported in 2005. It's due to fall off from your reports in a couple of months. I'd say just leave it as is since it's not reporting negative. Just me .2 cents...

Re: Dispute this 'Open' Collection?

llecs — Mon, 27 Aug 2012 01:25:51 GMT

OP, I see absolutely nothing wrong with this account. It shows as a positive based on the reporting. I'm guessing this is from EQ. Is there a red flag on your EQ FICO report?

Re: Dispute this 'Open' Collection?

XxRaVeNxX — Mon, 27 Aug 2012 01:29:59 GMT

It does show as positive(last reported in 2005)...but it's accounts...showing that I pay an extra 300 bucks a month...which I don't and lenders take that into account...saying I don't make enough...to take on anymore payments...

Re: Dispute this 'Open' Collection?

llecs — Mon, 27 Aug 2012 01:35:57 GMT

I see a minimum of $171. But I also don't see a balance. Absent a balance, lenders should be ignoring it. Where does it show $300? Does it show a balance owed elsewhere?

ETA...you are paying $300....but aside from the payments, is there a balance reporting?

Re: Dispute this 'Open' Collection?

XxRaVeNxX — Mon, 27 Aug 2012 01:38:23 GMT

There's another account(same company), that I just didn't post the image or account..They both equal about $300 a month. I can only hope the lenders are ignoring. I will have to talk to them. I know when I pull my report on Equifax and it shows 'Monthly Payment Amount'; these amounts ,even though there is no balace is showing, are showing under the monthly payment amounts.

Re: Dispute this 'Open' Collection?

Shogun — Mon, 27 Aug 2012 01:54:07 GMT

This one is currently showing as a positive account. Should you dispute this, it could become a negative.

Re: Dispute this 'Open' Collection?

llecs — Mon, 27 Aug 2012 02:18:46 GMT

@Shogun wrote:
This one is currently showing as a positive account. Should you dispute this, it could become a negative.

+1 x5000

Re: Dispute this 'Open' Collection?

XxRaVeNxX — Mon, 08 Oct 2012 16:04:10 GMT

Based on the date reported, can someone tell me when this falls off? Cause a potential creditor told me that these accounts are definitely factored in my debt to income ratio...which is not a good thing...Should I call the lender and ask them to close it based on goodwill since I have been paying their attorney religiously

Re: Dispute this 'Open' Collection?

Shogun — Mon, 08 Oct 2012 16:40:30 GMT

This will not fall off. Nor do you want it to! It's a positive TL. It will stay on your CR for 10 years after it is paid adding to the AAoA of your CR and helping your score.

Re: Dispute this 'Open' Collection?

XxRaVeNxX — Mon, 08 Oct 2012 16:42:26 GMT

Fall Off was a bad word...I just want it closed...I don't want it reporting I pay an extra $300, that creditors are going to see...when I actually don't...(Which it does)

Re: Dispute this 'Open' Collection?

Anonymous — Mon, 08 Oct 2012 16:47:04 GMT

@XxRaVeNxX wrote:
Based on the date reported, can someone tell me when this falls off? Cause a potential creditor told me that these accounts are definitely factored in my debt to income ratio...which is not a good thing...Should I call the lender and ask them to close it based on goodwill since I have been paying their attorney religiously

Don't go and poke a sleeping bear. They could easily go with the intentions of deleting and say "wait a second, we never put on here its a repo"...let's fix that. Then send you a letter saying "we've updated the info for you and its now going to hurt you till it drops off rather than not really hurt you till it drops off."

As far as this financing company your trying to refi through, If they are not looking at it and seeing the $0 balance and yet are saying "well it says your monthly payment is X so that must mean you paying it" then I'd find another company as I wouldn't trust this one if they can't do something so simple.

Don't don't don't poke the sleeping bear. Its going to drop off soon enough, its not like its only a year old. Wait it out and when they drop off, then refi and/or go find a company that knows if there is a $0 balance that it isn't factored into DTI ratios.

If companies were able to calculate your DTI ratio based on any monthly payment on your credit report balance or not, then no one would ever be able to get a car or mortgage unless they've only had 1 other installment loan in the past 7 years....

I have 2 student loans and an auto loan that have been paid off with $0 balances, however they still show my monthly payments....Find another bank to re-fi through, or just wait till it drops off.

Re: Dispute this 'Open' Collection?

XxRaVeNxX — Mon, 08 Oct 2012 16:54:58 GMT

Oh...apprecite it...I did it get re-financed through NFCU. I'm confused though, some people will say it will drop off, others say it won't..

And I'm only concerned because it was one of the reasons Chase denied me for a CC.(DTI ratio) You know how you look at your Equifax report, and you see your monthly payments..These are factored in that amount.

Re: Dispute this 'Open' Collection?

Shogun — Mon, 08 Oct 2012 16:56:01 GMT

There's no DOFD on the account, hence there is no set derogatory that would set the CRTP for when it would fall off. If you need something for your mortgage, just contact them to send you a letter that the debt has been satisfied. Don't drag the CRAs into it and get it updated!

Re: Dispute this 'Open' Collection?

XxRaVeNxX — Mon, 08 Oct 2012 16:59:54 GMT

So, based on the ten year rule, it's set to fall off in 2015?

Re: Dispute this 'Open' Collection?

Shogun — Mon, 08 Oct 2012 17:01:20 GMT

Yes, due to the fact that's the last time it was updated.