FICO dropped due to dispute?

[butterflyblu]

I had a collection with Capitol One that I went to court for last year and ended up paying it off.

It was never reported a year later  that it was paid, so I sent the court paper work that states paid in full, and my credit report showing it is still open on my report to all three agencies.

I get a "Score Watch" text that tells me that my FICO changed.  I was thinking it was resolved and showed paid. But, it shows consumer dispute, account under investigation.

My score went down about 20 points. YUCK.

Is this supposed to do that?

Thanks for the input 

UPDATE****** THANKFULLY THE DISPUTE WAS WORTH IT!  SINCE THESE WERE MARKED AS PAID ALL THREE REPORTS UPDATED AND I GAINED 40 POINTS!!!! SO HAPPY!  

Message Edited by butterflyblu on 05-18-2009 11:56 AM

[nothingman02]

It is my understanding that when you dispute an account with a CRA, that particular account would not be considered for scoring by FICO until its resolved. That a/c was probably helping your score with the payment history and age.

[fused]

When you dispute a collection, scores are likely to go down. Collections are not factored in payment history or length of credit history

[nothingman02]

Uh...er...my bad. Thanks.

The a/c was by Cap One, so I assumed it was (despite the OP clearly mentioning it  ) an OC listing and not a CA a/c.

Message Edited by nothingman02 on 04-08-2009 11:31 AM

[butterflyblu]

Thanks for the clarification. 

 Do you think then as soon as the investigation is settled and removed or showed "paid" that the score should go to where it was, or above it?

[nothingman02]

Ok. Let me try and understand this again. Is the listing on your report by a CA or the OC? 

An OC collecting th debt is different from a CA collecting a debt. In the case of the latter, there is no impact on the score with a dispute. The only impact would be when the listing comes off of your report.

[butterflyblu]

The account had gone to collections, it shows Capitol One not a collection agency on my report. 

Is that what you meant?  Sorry, new to the  boards so not too sure about the abbreviations..

Thanks.

[nothingman02]

You have to check if the account has been 'assigned' to an outside CA. Right now it seems like the account listing is from the OC in which case it is helping your score and disputing it has resulted in that listing not being considered for scoring. But after the dispute is resolved, if the account stays, you should have your points back. However not all the points.

The best way to deal with paid a/cs is GW letters. You could ofcourse dispute inaccurate information no matter what.