GENERAL DISPUTE QUESTION...

[miltolam]

About 5, 6 mo. ago, it was reported on my CR that my high cc balance on my Orchard Bank account is $5 more than my limit. Thinking that it would have a derogatoric effect, I disputed that it was inaccurate. OB eventually validated that dispute but It was notated on my CR as being disputed.

Does anyone know if a dispute notation will affect your scores? If so, can anything be done to have it removed? Today I found this to be true on my TU; it was showing up on my TU CR but did not factor in my scores. I had to call them to put in a request to have that comment removed and also do something on their backend so that it would be calculated in my TU FICO score. Currently, I have a $420 CL/$59 Balance. If this is true for all bureaus, I hope to see an increase in my scores all across the board. Thx in advance.

[llecs]

While in a dispute, FICO ignores certain aspects of OC accounts only (CAs and PRs are fully scored). These aspects include the payment history, balance, and CL. So, if the dispute comment remained past the dispute period, and showing in the comments, then FICO would be ignoring the balance and CL of that TL.

If removed, you might or might not see an increase. If the util on your other cards is lower than the util on this CC (14%), then you could see a decrease in FICO once the comment is removed. If util is higher on your other cards, then there's a potential for a gain. YMMV.

To get it removed, you can call the CRA and ask them to do so.

[miltolam]

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@llecs wrote:

While in a dispute, FICO ignores certain aspects of OC accounts only (CAs and PRs are fully scored). These aspects include the payment history, balance, and CL. So, if the dispute comment remained past the dispute period, and showing in the comments, then FICO would be ignoring the balance and CL of that TL.

If removed, you might or might not see an increase. If the util on your other cards is lower than the util on this CC (14%), then you could see a decrease in FICO once the comment is removed. If util is higher on your other cards, then there's a potential for a gain. YMMV.

To get it removed, you can call the CRA and ask them to do so.

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@llecs, as of the latest reporting, the CL/Balance on the two cards are listed below, again...Orchard Bank is the "disputed" account:

Cap One Platinum: Balance $20/Limit $750

Orchard Bank: Balance $49/Limit $420

These are the only two cards I have...Thanks in advance.

[RobertEG]

There are three reasons why a CRA will want to retain the notation of a prior, concluded dispute in a consumer's credit file.  They relate to rights afforded a consumer after resolution of a dispute, and thus the need for the CRA to retain the fact of the dispute in order to determine their eligibilty.

First is the right of the consumer, upon verification of the accuracy of disputed information, to put a statement in their credit file contesting the finding.  FCRA 611(a)(6)(B)(iii).

Second is the right of the consumer to request a description of the procedures used by the CRA in their reinvestigation (so-called MOV requests).  FCRA 611(a)(6)(B)(iii).

Third is the right of the consumer, if information is deleted as the result of a dispute, to request the CRA to provide notice of that fact to any person who has pulled their credit report for employment purposes within the last two years, or for any other purpose within the last six months.  FCRA 611(d).