Paid in full Collections still appearing on 2 of my reports

[redsox31324]

I've been through a bunch of threads and was just hoping for some updated solutions for a problem I'm having on my Credit Report.

In October 2013 I paid off four Student Loans through the Department of Ed. (collection listed as the Greenville TX location).  These were removed from my Experian report, but I looked again at my reports recently and see that three of them are still on my TU with full balances, and 1 is on my Equifax with full amount.  Both list the account as collection account.  I called yesterday to the number provided and they confirmed they were paid and sent me a receipt like thing that says the accounts have been settled.

The problem is, they don't list the amounts on the receipts and the account numbers don't match what's reported on my CR.  The Dept of Ed said they sent the info to the CR, but after calling both TU and EQ, they don't have that info.

Now I'm in the middle of applying for a mortgage and need them removed.  I was told that I could dispute them and they would investigate and then in 30 days they would be off.  However, I was told by my LO that I can't have any disputes on my CRs.

Any advice on how to quickly and efficiently remove these items?

Thanks in advance

[RobertEG]

I'm unsure of the specific concern by your loan offficer.

Is it entire deletion of the reported collection, or is that he/she requires that it be updated to show that the debt was satisfied?

If it is the former, you have a problem.  The debt collector has no requirement to delete their reported collection based on satisfaction of the debt.

To the contrary, their credit reporting agreement with the CRAs specifically iinstructs that such deletions should not be made.

Payment of the debt does not negate the fact that the debt went into collection, and thus the reporting of the collection remains accurate.

Upon satisfaction of the debt, the debt collector is required under FCRA 623(a)(2) to promptly update their reporting so as to show $0 balance, and close the collection.

If the later is the issue, you have taken appropriate steps to obtain updating to $0 balance, and the debt collector is apparently taking steps to correct.

I would trust that your loan officer would accept proper proof of payment, and not rely upon the obvious and required statutory outcome that it will be corrected in your credit report to show that it was paid. 

Your LO seems to be putting form over substance, and you may have to contact someone higher up in their management.

[-Wade-]

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@redsox31324 wrote:

I've been through a bunch of threads and was just hoping for some updated solutions for a problem I'm having on my Credit Report.

In October 2013 I paid off four Student Loans through the Department of Ed. (collection listed as the Greenville TX location).  These were removed from my Experian report, but I looked again at my reports recently and see that three of them are still on my TU with full balances, and 1 is on my Equifax with full amount.  Both list the account as collection account.  I called yesterday to the number provided and they confirmed they were paid and sent me a receipt like thing that says the accounts have been settled.

The problem is, they don't list the amounts on the receipts and the account numbers don't match what's reported on my CR.  The Dept of Ed said they sent the info to the CR, but after calling both TU and EQ, they don't have that info.

Now I'm in the middle of applying for a mortgage and need them removed.  I was told that I could dispute them and they would investigate and then in 30 days they would be off.  However, I was told by my LO that I can't have any disputes on my CRs.

Any advice on how to quickly and efficiently remove these items?

Thanks in advance

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I would dispute them on my credit reports and give the reason why

[redsox31324]

Thanks for the reply.

I think I misrepresented the facts.  Its not the fact that my LO wants it taken off completely, its the fact that the underwriting does not want consumer disputes listed in the comment field.  I'm guessing the fastest way to correct the accounts to show 0 balance would be to in fact dispute them, let an investigation proceed, and therefore have them taken off.

The CA on the accounts keep stating that they did report them paid and it is now the responsibility of TU and EQ to report it as such.  However, this seems backwards.  Should I be asking to talk to someone else in the department?

[-Wade-]

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@redsox31324 wrote:

Thanks for the reply.

I think I misrepresented the facts.  Its not the fact that my LO wants it taken off completely, its the fact that the underwriting does not want consumer disputes listed in the comment field.  I'm guessing the fastest way to correct the accounts to show 0 balance would be to in fact dispute them, let an investigation proceed, and therefore have them taken off.

The CA on the accounts keep stating that they did report them paid and it is now the responsibility of TU and EQ to report it as such.  However, this seems backwards.  Should I be asking to talk to someone else in the department?

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I have seen at times the disputes only take a few days ( not all cases )

[redsox31324]

Well that's encouraging.  Now would TU and EQ simply call the same number listed on my CR and ask if they were paid?  If that's the case, I can see that it would be a simple process.

[-Wade-]

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@redsox31324 wrote:

Thanks for the reply.

I think I misrepresented the facts.  Its not the fact that my LO wants it taken off completely, its the fact that the underwriting does not want consumer disputes listed in the comment field.  I'm guessing the fastest way to correct the accounts to show 0 balance would be to in fact dispute them, let an investigation proceed, and therefore have them taken off.

The CA on the accounts keep stating that they did report them paid and it is now the responsibility of TU and EQ to report it as such.  However, this seems backwards.  Should I be asking to talk to someone else in the department?

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 I would dispute them!!! That's the best way to get them corrected.... Good luck

[guiness56]

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@redsox31324 wrote:

Well that's encouraging.  Now would TU and EQ simply call the same number listed on my CR and ask if they were paid?  If that's the case, I can see that it would be a simple process.

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Normally disputes are done through an electronic system called e-Oscar.  The CRAs send a bunch of codes to the creditors whose account is in dispute.  It is then up to the creditor to verify, fix it or delete.  It is not the best system there is and subsequently, you can have things verified that should not be.

It would be best to send some type of receipt to the CRAs showing thses have been paid.

If the creditor sent you something, they should at least have the correct account information on them.

[redsox31324]

Thank you for all the input.  Got a couple of calls in my future and hopefully this will be cleared up sooner rather than later