Dispute lowers your credit score?

[silvius]

I've found that disputing a transaction lowers my credit score 40 to 60 points, once the initial comment reaches Experian.   That doesn't seem fair.  Any thoughts on whether or not this is the official policy of any of the three credit reporting entities?

[Anonymous]

@silvius Can you provide some additional details? You say you dispute a transaction, are you saying that you are disputing a derog (ie, chargeoff, collections) on your report?

You dispute a transaction through your financial institution. If that is the case, I have never heard of a dispute in this matter affecting your reports.

[silvius]

I should have been more clear, sorry.  I am talking about a disputed charge with a merchant, initiated by me with the credit card issuer, USAA.

[Mr_Mojo_Risin]

I don't think I've heard of losing points that way. What kind of comment is being left on your report? 

Is there a late payment of some sort from your lender that your disputing?

[Anonymous]

@silvius Thanks for the clarification. When did you initiate the dispute? Also, when was the dispute comment added to your CR? Does it show up on all three reports? Finally, is USAA reporting the disputed account balance?

Most cc agreements say something to the effect of taking 30-45 days to resolve the dispute but you don't have to pay the amount until the investigation is complete. 

Tbh, I have not heard of this situation occuring which is why I am asking for additional details. It might be a quirk with USAA.

[Mr_Mojo_Risin]

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@Anonymous wrote:

@silvius Thanks for the clarification. When did you initiate the dispute? Also, when was the dispute comment added to your CR? Does it show up on all three reports? Finally, is USAA reporting the disputed account balance?

Most cc agreements say something to the effect of taking 30-45 days to resolve the dispute but you don't have to pay the amount until the investigation is complete. 

Tbh, I have not heard of this situation occuring which is why I am asking for additional details. It might be a quirk with USAA.

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 Yeah I don't think ive heard of this one either. I'm a little lost I think. Lol

[silvius]

All I know is that a comment was added by USAA to my report two days after a initiated the dispute through them.  I don't know what the comment says.   But it has nothing to do with a late payment, I only have one of those and it was almost six years ago.       Four months ago, the same thing happened.   Right after I disputed a charge with USAA, my credit score dropped 50 points.  A couple of months later it went back to normal.

[Mr_Mojo_Risin]

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@silvius wrote:

All I know is that a comment was added by USAA to my report two days after a initiated the dispute through them.  I don't know what the comment says.   But it has nothing to do with a late payment, I only have one of those and it was almost six years ago.       Four months ago, the same thing happened.   Right after I disputed a charge with USAA, my credit score dropped 50 points.  A couple of months later it went back to normal.

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I hope someone with knowledge of your situation stops by here, I'm really interested to see how this works out.

Sorry I couldn't give you any insight on your issue.

[Anonymous]

Was this perhaps an item that got "removed until confirmed"? Does this happen during disputes? Did an account with overarching positives (AoA, UTIL, SL) disappear completely while a single late was being investigated? 

[Anonymous]

When I had to dispute a charge on my NFCU card they stopped reporting the available credit during that investigation time. There for reducing my utilization. That could be cause your score drop