Re: Dispute caused 25 point drop, can I fix it?

Anonymous · ‎01-05-2009

A few days ago in hopes of raising my score I disputed an account with Experian that was an old charge off. It was listed as 120 days past due in 2002. and was still showing a balance. I had paid it 4 years ago so I reported the payment and asked for it to be updated to paid in full.

This same account was also on my Equifax report (in duplicate by the way) and probably on my Trans Union as well but I do not have time to dispute those as they will have to be by mail.

I got an alert myfico with a drop of 25 points on my Equifax report for my efforts. The reason stated as "You’ve recently missed a payment or the date of your most recent payment is unknown."

I had no idea that disputing an account with Experian would affect my Equifax report!

I am applying for a mortgage this month. What if anything can I do?

Donna

llecs · ‎01-05-2009

Welcome to the forums!

First off, stop disputing. If reporting inaccurately, try with the source first via GWs and the like (if paid).

When you dispute, the CRA computer talks to the OC/CA computer and they, in turn, usually send a signal to all 3 CRAs. So, disputing with one often results in a dispute with all 3.

The only thing that can be done is to pull each report again and look to see the differences. If the OC was removed, you could have lost history and therefore lost points. If it remains, it isn't uncommon for an OC or CA to add lates that may be accurate, but were not reporting before (which may have happened to you). I'd look at each report to see when those lates were placed. It is also possible that the OC updated the account (in the Worst Delinquency box in your FICO reports) from "CO/collection" status to "was 120 days late" status which would result in a significant drop.

In any case, you'd want to fire off several GWs to the OC to ask them to remove any lates and to update the account as "paid in full". Make sure the word "settled" doesn't appear anywhere.

Anonymous · ‎01-06-2009

Actually, being a victim of the same situation, I'm gonna slightly stray away from your advice here. What happened with me is, every time I disputed a particular CO with EQ, the same thing happened to me. What did I discover?

Well, upon review of my TC account, it showed as CO years ago, and each time I disputed, it showed the CO as RECENT....as in, it shows the CO date as the month you disputed it! So, it makes it appear as though you just charged off the account, and therefore, your score lowers.

I have recently written EQ a letter about this, and awaiting their response. It appears there is some glitch in the system that causes a verified CO to show as CO'ed the date it was verified, which is definitely false information...

llecs · ‎01-06-2009

ssstevie wrote:
Well, upon review of my TC account, it showed as CO years ago, and each time I disputed, it showed the CO as RECENT....as in, it shows the CO date as the month you disputed it! So, it makes it appear as though you just charged off the account, and therefore, your score lowers.

It is actually SOP for most OCs and CAs to change the "reported date" or "update date" each time they receive a dispute inaccurate info and sometimes for letters like a DV, OC letter, PFD, GW, etc. With each event, they are re-opening the file and made adjustments then they update with each CRA (even if it isn't really being updated). FICO then reads that date change as if the baddie were new and will lower your score. The best practice is to contact the OC/CA directly via mail and your odds having a report updated (assuming it isn't for the better) go down some.

Anonymous · ‎01-06-2009

Thanks for the replies folks.

I am so discouraged by all of this. I should have left well enough alone I just can't stand the fact that it is listed as charged off and still owed when I paid the thing four years ago! Will it still go away 7 years from the original date of the late payment or will the updated info cause it to remain for another 7 years?

I guess there is no hope of fixing this by next week.

Thanks again for your input.

Donna

Anonymous · ‎01-06-2009

Oops, I hit that solution button by mistake. Please excuse the newbie.

llecs · ‎01-06-2009

I'd send GWs now. You'd be surprised how quick some act.

It will stay on not 7 yrs from date of last payment or and extra 7 yrs, but rather 7 yrs from DOFD which could be much sooner than the date of your last payment.