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Intent To Sue
This reporting can be removed. If they do not want to remove it voluntarily they need to be compelled to remove it.
Well it has been a while, but I have an update.
I wrote a letter, explaining the situation, and got a response via Email, received a phone call, and got a letter via snail mail in 1 WEEK! They removed everything and my wife's credit shot up to 811. We are pumped!