Question about collections account (keeping me from getting a home loan)

[Anonymous]

Hello guys, I had a question about a collections account that I have on my Equifax credit report.  The collections account is from IC Systems from an AT&T bill that was a mistake.  A few months ago my wife and I started taking careful note of our credit as we're about to apply for the USDA Guaranteed Loan.  We noticed that I had a $68 charge from ATT.  I had no idea what this was about, so after contacting ATT (this was about 3 months ago), it was discovered that this was a billing error on their side when they switched our account to a new account in 2010.  Basically they left the old account with a $68 balance and we never got a notification or bill for it and eventually it was to a collections agency and then I noticed it on the report.  They agreed and said it was their mistake and they would remove it. 

Fast forward to today and my wife and I are getting things in order, about to apply for the loan and check Equifax one more time to make sure everything is in order.  Low and behold the Collections account is still there, it shows a $0 balance but it's still there.  From what I've read, USDA guidelines stipulate that I cannot have any collections that have been started within a 1 year time frame.  The collections account was started in July, 2012.  We saw a house we really loved, wanted to get the ball rolling on this and now I have a collections account with a $0 balance could potentially be stopping me from being eligible for a home loan. 

My question is:  How do I get this resolved without a dispute to Equifax?  I've also been advised not to file any type of dispute as that could be harmful and negative for my LO to see.  I thought about calling the debt collection company tomorrow and asking them to remove it but I'm weary that they may file some type of dispute that would show up on the credit report.  My wife is really flipping her **bleep** over this as she thinks the house may be bought from under us.  

Is there any advice anyone can give me on this?  I'm just about desperate.   

[boomhower]

NEVER NEVER EVER TALK TO A CA ON THE PHONE!!!!!!!  Everything needs to be done in writing with them.  There may or may not be a way to get it removed without disputing it.  It depends on how the collection was assigned to IC.  If they have an account with AT&T and they assign them the accounts AT&T can recall it from them pretty easily, they should have already done so.  If AT&T sells the debt to them then they can't do that.  You will need to get the documentation from AT&T that it was their error and send that in with your dispute.  The thing about disputes and mortgages is that they have to be completed for the loan to close, often to be able to go to underwriting. Disputing in and of itself isn't going to hurt you but will slow the process.  But since you can't move on without it removed anyways that's a moot point. This isn't going to resolve quickly no matter how you slice it.  Best thing to do is call AT&T ASAP.  Have them recall it if they can and if not fax the needed paperwork showing their error ASAP.  Then overnight that in with your dispute to the needed CRA(s).  Good luck.

[Anonymous]

Ok, this has been a strange day.  Unfortunately, I didn't get to read your reply until just now.  I actually did call IC Systems and asked what had happened.  The lady there told me that the collections account had been recalled by ATT back in late December and that they send out (i forget what she called it) some kind of recall that should have removed the account from the credit reporting agencies.  She said it was removed on January 13 at exactly 5:03am.  She had no idea why Equifax was still reporting it as it had been removed on their end.

She advised me to call Equifax and ask on their end.  I did just that and talked to a dispute representative.  He basically told me that he couldn't do anythin without a dispute and that I needed to call them back and that they did have the power to remove it.  So, I get off work, call IC Systems back, get a very nice guy (awesome guy for a collections agency) and he was extremely helpful.  He basically reiterated what the previous IC Systems rep had said in that the collections account had been removed on that date and that time.  He said it was fairly well known that Equifax is very slow pulling out collections accounts for removal.

He said that he couldn't remove it on his end (as the Equifax rep had suggested) as he had already removed it back in January.  It was already done.  He also said that it was fairly common for LOs to call IC Systems and veryify that debt had been paid as it was well known the Equifax was very slow. 

Do you guys have any knowledge with this?  Do you guys see any merit to what the IC System rep was saying?  It puts me a little at ease, but I still have no way of getting something off my credit report that was in no way, shape or form my fault.  I'm sure the LO may be lenient with the situation and help us out but I'm worried about it having to go into manual underwriting and take significantly longer.

[AndySoCal]

I would talk to ATT and see if they will take payment on the account before they reassign the account to other collection agency. I hope the account is removed soon.