topic Re: How to remove $60 CBE collection account in Rebuilding Your Credit

How to remove $60 CBE collection account

KM1980 — Fri, 07 Jul 2023 21:54:53 GMT

Hello everyone!

Need advice on how to proceed. My mortgage broker notified me today that all three credit reporting agencies show a $60 collection account with CBE Group on my report, which was added in June 2023. It appears that it has taken my score down by about 80 pts.

After contacting CBE Group to get more details, we traced it to not returnig an internet modem to Spectrum after we had relocated. Per CBE collections employee's recommendation, I found and returned the modem to Spectrum today. I was told that CBE will file a dispute with the credit agencies (not sure what that means and how it will affect my score).

I reached out the bank that I am trying to get a mortgage from and was told that while dispute may help with the credit score calculations, the mortgate underlying system will still pick this up. The best route is to get the collection agency to delete the account.

Since I have returned the equipment and technically don't own anything, what is the best route for me to move forward to get this deleted from the three credit reports?

Is the agency disputing the charge even going to help me?

Thank you for your time.

Regards,

KM1980

Re: How to remove $60 CBE collection account

ForwardLooking — Fri, 07 Jul 2023 22:47:59 GMT

I don't think the Collection Agencey can dispute anything they put on your report, they can only correct it or remove it, only you can dispute it. I would assume they are marking your account as disputed by consumer which is a red flag for some mortgage lenders and underwriters. A paid collection under $100 is considered a "nuisance" collection and will not affect your FICO 8 or FICO 9 scores. However, it will still have a big impact on your FICO 5 4 2 scores.

Also, older score models would ignore or lessen the impact of disputed accounts, which would artificially raise scores for customers. The mortgage industry caught on to the scam and are highly suspisious of disputed accounts, and some will not even talk to you if you have a disputed account.

Talk to Spectrum and ask them to recall the debt from CBE since you returned the modem. If they recall CBE and communicate properly with them, it should disapear from your report.

Re: How to remove $60 CBE collection account

KM1980 — Fri, 07 Jul 2023 23:04:59 GMT

@ForwardLooking wrote:
I don't think the Collection Agencey can dispute anything they put on your report, they can only correct it or remove it, only you can dispute it. I would assume they are marking your account as disputed by consumer which is a red flag for some mortgage lenders and underwriters. A paid collection under $100 is considered a "nuisance" collection and will not affect your FICO 8 or FICO 9 scores. However, it will still have a big impact on your FICO 5 4 2 scores.

Also, older score models would ignore or lessen the impact of disputed accounts, which would artificially raise scores for customers. The mortgage industry caught on to the scam and are highly suspisious of disputed accounts, and some will not even talk to you if you have a disputed account.

Talk to Spectrum and ask them to recall the debt from CBE since you returned the modem. If they recall CBE and communicate properly with them, it should disapear from your report.

Thank you for your reply.

Just to make sure I understand it correctly, I must not dispute the charge or have CBE dispute on my behalf as that is a big red flag. The CBE associate mentioned that she is going to mark the item as disputed in the system. I will call them back and ask them not to make any changes for now. Hopefully, nothing has gone out of the door yet.

What if Spectrum is unwilling to recall or does not communicate it properly to CBE? What are some other options? A goodwill letter to CBE, perhaps?

Re: How to remove $60 CBE collection account

FireMedic1 — Fri, 07 Jul 2023 23:22:15 GMT

I think Spectrum is saying they got their equipment back and they will recall the debt. If they dont. You got the return reciept that the equipment was returned and you can file a complaint with the CFPB if it comes down to that.

Re: How to remove $60 CBE collection account

ForwardLooking — Fri, 07 Jul 2023 23:32:18 GMT

The easy path forward (for you, not CBE or Spectrum) is to get Spectrum to recall the debt and CBE will remove themselves because they did not actually service the debt. Make sure you have your receipt from Spectrum for the equipment you returned to them today and call Spectrum to start getting them on the recall process.

Ask you mortgage broker what effect a recent $60 collection that is paid will have on the application process. If it is minimal, then make sure your report says paid with no disputes on it, other wise, see below.

If CBE dosen't remove themselves after talking with Spectrum, you will want to contact CBE and let them know that your debt was settled directly with Spectrum and provide the receipt as proof.

If CBE does not remove it after that, you may have to go through a formal dispute process with the Credit Bureaus. It is an ugly process, and it will not be resolved quickly. This will be the least desired path because you will have to open a dispute, which will show on the account, provide details and the receipt you got from spectrum, and finally each Credit Bureau will open an investigation with CBE. CBE will then (within 30 days) either not validate the debit which will have it removed, or they will validate and verify it, saying they "owned the debt and the account information is correct on the report".

If CBE does come back as "verified", the next step would be opening a dispute with the CFBP and listing each Credit Bureau and CBE in the complaint. CFBP will have an ombudsman look at the complaint and will push CBE to remove their reporting if they feel it violates the FCRA.

Unfortinatly, this is an ugly process. I do hope Spectrum is able to help resolve this quickly so you don't have to go through the longer process. I am sorry you are going through this when I know you are excited to be looking at a home, but I have faith something will work out and you will be in your new home soon.

Re: How to remove $60 CBE collection account

KM1980 — Mon, 10 Jul 2023 16:02:49 GMT

@ForwardLooking wrote:
The easy path forward (for you, not CBE or Spectrum) is to get Spectrum to recall the debt and CBE will remove themselves because they did not actually service the debt. Make sure you have your receipt from Spectrum for the equipment you returned to them today and call Spectrum to start getting them on the recall process.

Ask you mortgage broker what effect a recent $60 collection that is paid will have on the application process. If it is minimal, then make sure your report says paid with no disputes on it, other wise, see below.

If CBE dosen't remove themselves after talking with Spectrum, you will want to contact CBE and let them know that your debt was settled directly with Spectrum and provide the receipt as proof.

If CBE does not remove it after that, you may have to go through a formal dispute process with the Credit Bureaus. It is an ugly process, and it will not be resolved quickly. This will be the least desired path because you will have to open a dispute, which will show on the account, provide details and the receipt you got from spectrum, and finally each Credit Bureau will open an investigation with CBE. CBE will then (within 30 days) either not validate the debit which will have it removed, or they will validate and verify it, saying they "owned the debt and the account information is correct on the report".

If CBE does come back as "verified", the next step would be opening a dispute with the CFBP and listing each Credit Bureau and CBE in the complaint. CFBP will have an ombudsman look at the complaint and will push CBE to remove their reporting if they feel it violates the FCRA.

Unfortinatly, this is an ugly process. I do hope Spectrum is able to help resolve this quickly so you don't have to go through the longer process. I am sorry you are going through this when I know you are excited to be looking at a home, but I have faith something will work out and you will be in your new home soon.

Thank you for the detailed reply. I reached out to Spectrum billing today. An associate confirmed that the equipment has been returned, and I was told that they have started a recall process.

I reached out to CBE Group afterwards. The employee confirmed that they have received information from Spectrum, but would not provide any information/detail besides the scripted line that goes something like "CBE Group reports accurate information to credit reporting agencies on regular basis. Please reach out to credit reporting agencies for matters related to reporting". I did tell that I have returned the equipment and Spectrum will be startig a recall process, but he would not say what happens next from CBE side.

However, he did mention that the account shows as disputed. I suspect, the CBE employee that I spoke to past Friday when I learnt about the debt, has made changes to my account. I am now concerned that the "disputed" status may have some negative remifications. The employee that I spoke to today would not provide any information as to what the "disputed" means. Should I call CBE back and try to get the "disputed" status removed?

Thank you!

Re: How to remove $60 CBE collection account

ForwardLooking — Mon, 10 Jul 2023 16:34:36 GMT

@KM1980 wrote:
Thank you for the detailed reply. I reached out to Spectrum billing today. An associate confirmed that the equipment has been returned, and I was told that they have started a recall process.

I reached out to CBE Group afterwards. The employee confirmed that they have received information from Spectrum, but would not provide any information/detail besides the scripted line that goes something like "CBE Group reports accurate information to credit reporting agencies on regular basis. Please reach out to credit reporting agencies for matters related to reporting". I did tell that I have returned the equipment and Spectrum will be startig a recall process, but he would not say what happens next from CBE side.

However, he did mention that the account shows as disputed. I suspect, the CBE employee that I spoke to past Friday when I learnt about the debt, has made changes to my account. I am now concerned that the "disputed" status may have some negative remifications. The employee that I spoke to today would not provide any information as to what the "disputed" means. Should I call CBE back and try to get the "disputed" status removed?

Thank you!

The process will take a while to works its course. I know this is the most urget thing in the world to you today, but it is just routine business for Spectrum and CBE so they will not see it the same. A little patience will go a long way here.

Only thing I can think of while waiting, is to see if Spectrum will send something in writing that they are recalling they debt because you returned the equipment. Tell them why you need it for the mortgage application. If you have a kind soul on the other line, they may send you the letter and help speed the process along to boost. Just don't tell them you are trying to repair credit as they get a thousand of those type of request and it won't receive any special urgent treatment. You will need that statement from them if CBE does not cooperate in the process, and your broker may be able to pass it to underwriting to have them "overlook" that entry on the credit report as they go through the underwriting process. If that is the only recent blemish showing on your reports, underwritters have the authority to "overlook" lineitems if they are satisfied with your explination. Ask your broker about the underwritting process and see to what degree manual underwritting occurs.

Re: How to remove $60 CBE collection account

FireMedic1 — Mon, 10 Jul 2023 23:15:54 GMT

I'll just say congrats. They messed up and now they have to fix it. Or a nice FRCA Lawyer would love this case if CBE Group doesnt remove the collections. $1000 for you and lawyer costs.

Re: How to remove $60 CBE collection account

KM1980 — Tue, 11 Jul 2023 21:01:35 GMT

@FireMedic1 wrote:
I'll just say congrats. They messed up and now they have to fix it. Or a nice FRCA Lawyer would love this case if CBE Group doesnt remove the collections. $1000 for you and lawyer costs.

Thank for the reply. Hopefully, this will be get sorted it out as fast as possible to my satisfaction.