Hello all, this is my first post so please bare with me for rambling on. I just want to make I lay out all the details. 
I have a old Citibank debt that was originally on my Equifax report July 2005. It was disputed 8/2005 & removed by Equifax as per their letter 9/2005. The last date of activity at that time was 5/2003. Since then, I am in the process of purchasing a home & this item was purchased by Pinnacle Credit Services as a letter was received back in 11/2009. I responded to their notice requesting them to validate the debt, no response. January 2010 the item was placed on my credit report. Their last date of activity is shown as 6/2003 and of course the dollar amount owed is twice as much as it was back in 2005.
I have since contacted Equifax to have the item removed as they're reporting incorrect information. I still have the original letter from 6/2005 when the account was listed with Citibank with a last date of activity of 5/2003 & also the letter from 9/2005 where they deleted it from my file. Equifax claims the item has been verified & the item is still there.
Now, my problem is, I'm really close to closing on a USDA loan & my mortgage guy is giving me a hassle because the item shows up as a "New" collection. USDA is running out of money, I'm risking missing out on the 1st time homebuyer credit & all of this with a 693 score when only 620 is required. Anything over 640 is "supposed" to be no questions asked so I don't know what his problem is! I have already contacted Equifax twice about this and has gotten the same response each time. Am I missing something? If Equifax had the last date of activity listed as 5/2003 & this new company changed it to 6/2003 aren't they reporting incorrect information? And in a case such as this, shouldn't this be removed? Even with the original last date of activity of 5/2003, this item would be due to be removed next month. But the sellers bank wants to close by May 10th so everything would need to be taken care of before then.
I'm going to be talking to my mortgage guy again in the morning, I think he also stated that the Pinnacle entry shows two payments has been made which is a HUGE no no. I NEVER made any payments to them, I know better than that with this being as old as it is! I'm going to have him fax me a copy of the report he has. I was thinking he was reading something wrong but he says they show 2 payments were made, one in Nov 2009 & January 2010. I'll just have to see this for myself. If anyone out there has any suggestions please let me know. My girlfriend has worked so hard over the past 2 years cleaning up my credit from a 425 to where it is now @ a 693. We've been looking for a home since July and after 7 contracts including 2 bidding wars & a 6 month short sale delay, we're finally getting somewhere. Any thoughts or suggestions, please pass it on. Thanks! T
