Basically, I just want them to correct the balance and show it as zero since they were discharged or paid through the Ch 13 BK. I have one that keeps reporting a balance and showing it late 45 times since 2005. We filed Ch 13 BK in 12/2001 and discharged it in 6/06. I'm just not sure how this will be viewed when we apply for a mortgage and could use the boost in points if this is corrected. I think if the company we choose for our mortgage would just manually underwrite it, they would see that it was included and paid through the Ch 13 plan, but if we go with a company who just uses a score and blindly approves or denies it, then we will be in trouble.
Dispute the account with the CRA's that it should be showing $0 balance due to being included in bankruptcy and include your bankruptcy paperwork, specifically, your list of creditors. That should take care of it without writing any letters to creditors.
I disputed with the CA's and several of my accounts have come back verified and they have not updated the status to show IIB. So, I have now sent certified letters to all the OC's- I am copying the letter that I used and I also mailed a copy of my BK discharge notice with the letter.
Re: Account #: XXX
Dear Sir or Madam:
This letter hereby notifies you that the accuracy of this reported debt in dispute. In accordance with the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 you must correct any erroneous reporting to any and all credit reporting agencies.
The status of this account is listed on my credit report with Equifax as “Bad debt; placed for collection; skip”, and listed with TransUnion as “Charged off as bad debt.”
However, you were notified by the United States Bankruptcy Court – District of South Carolina that my bankruptcy was discharged on 08/08/2005, and you have failed to update my account information with all credit reporting agencies accordingly.
Please correct your records and immediately delete this erroneous information from my credit file with all sources to which you have reported, Equifax, Experian, and/or TransUnion.
Failure of your company to comply with this request will be a violation of the Fair Credit Reporting Act as well as The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, 11 U.S.C § 528, and will directly result in a complaint filed with the Federal Trade Commission and the State of Texas Attorney General's office. Please be advised, should this request be violated, I will pursue all criminal and civil claims, including any and all punitive damages, allowable by federal and state law against your company.
I have disputed with the CRAs, actually so many times that the last time, they told me they have verified it and it stands as is and I can't dispute it anymore and any further efforts should be directed to the creditor. I even sent TU a copy of the discharge order and list of creditors and the only thing that did was get them to delete 14 positive, good-standing accounts that I am now fighting to get returned. Sometimes, I feel like I am beating my head against the wall. I realize that my filing BK was a mistake, but that was in 2001 and I have cleaned things up a lot. I have no credit cards and pretty much pay cash for everything. I realize this doesn't do much for credit scores, but hopefully, I will find someone to manually underwrite a mortgage for us.
I feel like I was lucky in getting mine reporting correctly after my BK (seems so many people have trouble with it). I dont know, maybe for me it was because I did not dispute the fact that my accounts were in collections or charged off, or late, etc...I only disputed the fact that they should all now be 0 balances, with no past due amts, and all sb marked as IIB. I wasnt trying to get them removed entirely, just to report accurately. So I wrote that while it was true that they were charged off, late, in collections, they were also included in my BK, so should also be reporting as such. After all was done, I checked all reports, and all were fixed to report IIB. I thankfully had no problems with this whatsever and 2 yrs later are still reported accurately.