I recently applied for a Patelco CC and was declined due to a couple of accounts listed on my EX report. One was a collection that I disputed and has since fallen off since my application (3 weeks) and another for a CC with WAMU/Providian that I belive is reporting incorrectly.
Below is the recon letter I send to Patelco yesterday, and wanted to share with with the forum to get feedback and thoughts on the possble outcome (all guesses I know, but it's fun to theorize until they respond). 
If anyone has any similar recon stories to share......while I'm waiting for a respose, please share.
This was addressed to the Central Lending Credit Manager.
Dear Credit Manager,
I recently applied for a Patelco MasterCard (3/11/08) and was declined for what appears to be reasons associated with a collection item on my Experian credit report (Security Credit for $1387).
I am requesting reconsideration because since the application with you, which made me aware of the collection, I have disputed this item and it has been removed from my credit report.
In addition, when I called to inquire about the reconsideration process, a very nice Patelco CSR named Larry, explained that it was possible that an additional account listed from Washington Mutual / Providian may be a cause for declination as well, and I wanted an opportunity to explain that account fully so that you had a complete picture for your decision.
As you can see from the Experian credit report that I pulled today and included with this fax (new score 654) , the WAMU/Providian account went delinquent 5 years ago, and is also being reported under Portfolio Recovery & Affil with the same account # and the same amount ($2744).
First, WAMU should no longer be reporting this account as they transferred / sold it to Portfolio. Second, the balance with Portfolio is incorrect as they were paid through the Ch 13 process. I have disputed the WAMU item with Experian, but it comes back as “verified” each time. I also recently disputed the amount due from Portfolio, as it should have a zero balance.
Finally, I think you can plainly see from my recent credit activity, that I take my credit obligations very seriously and pay all creditors on time, every time. In addition, if you look at my report, I have some relatively substantial trade lines for $2,500 - $7,500, which I believe are a good indication that I am a good credit risk for lenders, and continue to demonstrate that, through responsible borrowing and timely payments.
I hope that you will reconsider my MasterCard application with a credit limit of $3,500. I am building new relationships 5 years after my bankruptcy, and Patelco appears to be an excellent institution from the referrals I have received.
If you would like to discuss further, please don’t hesitate to give me a call (XXX-XXX-XXX) or you can request additional information via e-mail to xxxx@blah-blah-blah.com. Please feel free to send your credit decision to my e-mail address as well.
