So almost 7 years ago I took out two loans with pioneer military loans. Paid them all off in full ( they are still on my credit report and say so as well) None of them were over 1k. I checked my credit report recently and there’s a collection for 9k that is Jefferson capital and the original creditor is Pioneer military loans. I have never taken a loan out for this amount. I was 21 at the time so im not sure what i would be doing taking out a 9k dollar loan. I tried the online dispute with Experian and it came back as "Account information disputed by consumer (Meets requirement of the Fair Credit Reporting Act"
I called Jefferson capital. They told me I contacted them sometime last year and negotiated a payment for 4K (I never did this). I told them I want to dispute it. They said the loan is from 2014, it was under my maiden last name and I need to provide documentation I never took out the loan. (Not even sure how to do this) I even tried contacting the original company to get more information but they have since gone out of business.
Where do I go from here?
This could potentially be identity theft...someone took out loans in your name and apparently tried to negotiate a settlement? I'm not so sure on this. I'd say place fraud alerts on your three bureaus, and perhaps consider filing a police report.
I'll defer to others with more knowledge/experience on this though.
The proof of burden is on them to prove you took that loan out if you dispute it. But I would make sure you dispute it thru the mail, certified, not online. If you "dispute online then you waive your right to see the method of verification received by the bureaus from the creditor and since the dispute was online, the verification used was e-Oscar. So there's no paper trail for record keeping."
Also within 30 calendar days of receiving your dispute they have to note your credit report that you have disputed. If they do it even one day late they are not following the law. (FDCPA section 807(8) and FCRA section 623(a)(3).
The FCRA includes a procedure that was established to provide consumers the ability to have any information in their credit report blocked from any continued inclusion, without any need for any proofs or a dispute of its accuracy, IF they make that assertion before a law enforcement agency. The FCRA identity theft process is covered under FCRA 605B.
If you file a police report asserting that you never opened any such loan, and thus it must have been done someone using your identity, you can send the police report to the CRAs and have the information blocked from your credit report without any involvement of the alleged creditor or debt collector.
For details, see the sticky-thread labeled "Victim of Identity Theft..." in the upper segment of the General Credit Topics forum.
You can, of course, file a dispute and contest the accuracy, but that will involve presentation of evidence and its evaluation by the furnishing creditor, debt collector, and CRA.