PenFed Made a HUGE Mistake...But could cause a lot of damage

[Spotsy]

I get an alert this morning from Experian that my score dropped 99 points.  WTH....checked in and PenFed posted an old account from 2016 as a Charge Off.  The account has been closed for over 3 years and paid in full...never missed a beat.

After some digging...it looks like a computer mistake...I’m guessing...but there was a fraudulent charge from WinDixie in FL.  I called, they credited it back and issued a new card...this was in Feb of 2016...life goes on.

It appears that something caused the fraud charge to reappear, dated feb of 2016,  the account aged to a charge off status and PenFed reported it.  UGH.  Spent the day filling out forms, etc, at a PenFed branch in DC to get corrected.

Is this crazy or what!?  Should I just get a lawyer to deal with it and correct all the damage this may cause as Penfed takes 7 to 10 days to correct?  Meanwhile my Experian and Equifax reports are messed up. Worried about adverse actions...is PenFed liable for the damage?

[Physh1]

I'm not an expert here but I'd hold off on a lawyer. Sounds like you've done the work with PenFed & I would personally file a dispute with each bureau as well. I cannot see AA occuring that quickly. If PF doesn't correct it & the disputes don't either you can sue under the FCRA based on the false information. A lawyer isn't going to correct this any faster than PenFed in 7-10 days...just keep a super close eye on it but I'd file disputes as a back up.

Again, I'm no expert here...just starting to get a feel from the rules so someone please correct me if I'm wrong.

[Spotsy]

All paper work and disputes have been filed...but make not mistake, AA can happen simply because of their mistake and in a matter of days.  It all depends on when the creditor(s) do an AR.

What aggregates me is that their mistakes is causing so much work on my end that if the tables were turned...they would not hesitate to close an account, hike interest rates, lower limits.  This can affect insurance renewals, which I am in the middle of.  I am trying to keep this contained.