Credit Report Disputes

[Anonymous]

I have a collection account that is being reported by both the OC and the CA, I am in the process of putting a settlement in place to pay off the debt. After the collection is paid can I dispute the reported item by the OC as already having been paid? If so can I also do that with the reported item by the CA?

Thanks

[RobertEG]

No.

Once you pay the debt, the debt collector must notify the creditor of the payment, and the creditor is then required to promptly update their reporting to show paid, $0 balance.  Paying the debt, regardless of who the payment is made directly to, will result in both updating to paid, $0 balance, but wont require deletion by either.

Stating differently, the prior account history reporting made by the creditor is no rendered inaccurate by payment of the debt, and thus there is no legitimate basis for a dispute of accuracy based on a change in status from delinquent to paid.

The common credit reporting manual used by the big-4 CRAs clearly instructs both creditors and debt collectors not to delete their account or collection based on payment of the debt.

[Anonymous]

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@RobertEG wrote:

No.

Once you pay the debt, the debt collector must notify the creditor of the payment, and the creditor is then required to promptly update their reporting to show paid, $0 balance.  Paying the debt, regardless of who the payment is made directly to, will result in both updating to paid, $0 balance, but wont require deletion by either.

Stating differently, the prior account history reporting made by the creditor is no rendered inaccurate by payment of the debt, and thus there is no legitimate basis for a dispute of accuracy based on a change in status from delinquent to paid.

The common credit reporting manual used by the big-4 CRAs clearly instructs both creditors and debt collectors not to delete their account or collection based on payment of the debt.

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Thank you!