Difference in balance from settlement being reported

[BallBounces]

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@Anonymous wrote:

This scenario has happened twice to me. Reporting the difference as a balance makes sense but...

I ended up calling a Consumer Attorney in my state who said that although it will show paid for less, the balance should reflect 0.

I will dispute 1 more round and then if nothing is changed, it sounds like a lawsuit will be filed.

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Right, it is strange to me that it has reported like that for 16 months for you.  Sometimes it seems to take a month or two longer to reflect a 0 or - balance after the Settled for less status is entered.    But 16 months is clearly an issue.    When you spoke to Cap 1, did you speak to the credit reporting group?

[Anonymous]

I’m in the same position as you as I settled for an amount that’s $329 less than the full amount and once I sent payment the OC updated to balance to $329. The settlement letter explicitly states “We’ll consider this account be settled in full and no amount owed”. To me, and to everyone looking at credit file, a remaining balance states that I still have a liability with this lender. The balance is essentially “an amount owed” so having a balance other than $0 contradicts their agreement to me of “no amount shall be owed” and is a breach of contract. I have sent a letter to their attorneys as of Friday. If no response within 10 days, I’m filing in small claims court for breach of contract and see if that gets their attention.

[Anonymous]

I am doing the same but I am waiting until the 4th as I've disputed it with the bureaus and the 4th will be 30+ days after disputing it directly with them.

Please let us know what happens.

[Anonymous]

In my attempts to delete information, I even wrote the executive officers, including the CEO (which worked for another company) and informed them of this situation & nothing. So I think in the end either it is OK & not against the law for them to report a balance after settling or it is not and suing is the solution in cases such as these where it is not corrected/updated.

[Anonymous]

I spoke to everyone I could, their supervisor and their supervisor.

It was always a run around, some new line or information.

I think in the end, if you sue for a small amount that makes it not worth the trip to court, you'll get the results you want. For example, you sue for $100 (being extreme here) but think about it - sue for damages and also require deletion - wanting $100 - they aren't going to mess with it...but these are assumptions at best.

[Anonymous]

I am going to keep adding to this therefore more information is available to those that are in similar situations and are reading through these boards seeking insight.

After speaking with several consumer attorneys, reporting any balance after a settlement has been satisfied is incorrect. I've disputed several times with the bureaus and with the creditor directly with no results. I am going to dispute 1 last time and then I will sue. Sadly for them, I contacted the creditor today - after 30 days with no response as I had disputed directly with them and they came up with a new story that the last settlement payment had been reversed. This is very untrue because I have bank statements showing all settlement payments were cleared. So I believe it is them now trying to be sneaky and avoid any liability by getting me to send in information so they investigation can be prolonged even though the 30 day window has expired. Either way, I will dispute 1 more time - in the same way - no balance, settlement paid, no balance owed, etc. And if it is not fixed - I will sue and I will win because I will receive money and have the item deleted from my credit report.

[Anonymous]

My case is a bit different. They initially reported it with a balance left and then corrected it when I sent an ITS letter this week and they reported it as a “settlement,
Settled for less than total amount owed”. Still filing suit next week to get this deleted.

[Anonymous]

Adding an update here:

After finding an attorney to help me for free, I submitted one last dispute with all 3 - Trans, Exp & Equifax. My total disputes for this issue will be 7 times, with each bureau. I have proof of payments, conflicting information from them, claiming different dates of payment reversals and ultimately no correction after this hopefully final dispute.

Will update when I can.

But ultimately - if a settlement is agreed upon, payments are made - keep proof of payments! The difference in intial balance owed and settlement amount agreed upon is still reported - it is wrong. These banks will be sneaky and try and reverse your last payment since they received all the money up until that point and then get you to agree to another settlement to ultimately pay them more money and the whole original balance to begin with.

Cheers.

[ChessChik47]

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@Anonymous wrote:

Adding an update here:

After finding an attorney to help me for free, I submitted one last dispute with all 3 - Trans, Exp & Equifax. My total disputes for this issue will be 7 times, with each bureau. I have proof of payments, conflicting information from them, claiming different dates of payment reversals and ultimately no correction after this hopefully final dispute.

Will update when I can.

But ultimately - if a settlement is agreed upon, payments are made - keep proof of payments! The difference in intial balance owed and settlement amount agreed upon is still reported - it is wrong. These banks will be sneaky and try and reverse your last payment since they received all the money up until that point and then get you to agree to another settlement to ultimately pay them more money and the whole original balance to begin with.

Cheers.

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Good luck!!  I wish you much success with this nightmare!  

[satio]

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@Anonymous wrote:

Capital One

Balance was $1,981

Accepted and paid settlement of $1,500

They are reporting the difference of $481. They are saying it is not owed but that it is the balance on the account and therefore accurate?

I know these companies are constantly looking for ways to report just as we are all looking for ways to delete.

I initially thought this was nuts but am wanting an accurate perspective.

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I had a similar situation with 2 accounts settled earlier this year but it was only affecting Experian not updating to zero balance. 

Rather than disputing with the CRA, I wrote a letter to Capital One including copies of their settlement letter for each account, that it had been > 60 days since the debt was paid as recited in their settlement letters as the time to expect the CRAs to update. 

My request was acted upon within about 14 days after receipt of my letter sent certified mail as evidenced by Capital One sending updates again to each CRA for the information submitted in by them in July 2019.

The timeline for my events:

May 2019 Payments for Settlement Amounts Received by Cap1

June 2019 Accounts on all CRAs updated to reflect the payment amount, remaining balance still showing

July 2019 Accounts on TU and EQ updated to reflect 0 balance and settled for less

Sep 2019 Wrote letter to Cap1

Sep 2019 Accounts on EX updated to reflect 0 balance, Cap1 also sent repeat updates to EQ and TU for the July information