So I have this closed account with balance from 5 yrs ago that still shows in EX and EQ, zero balance from TU. I was issued by the creditor a 1099-c and debt was cancelled. What should I do with the balance that still showing on 2 CB? Should I dispute this or should I just let it go? Just want to clean my credit file and any suggestion is appreciated. Thanks
AAoA 6yrs 3mos Inquries: TU6/EQ7/EX6 Utilization: 7% Mortgage: 1 Auto Loan: 2 Personal Loan: 1 Derogatory: 0
The debt balance is a factual item of information that should be the same regardless of which CRA it is reported to.
A creditor is required under FCRA 623(a)(2) to promptly update any item of information that has been reported to a CRA if it changes.
The reporting must accurately reflect its current value.
If it is closed account that had a delinquent balance, that implies it is a revolving line of credit, such as a credit card or other revolving type of credit.
The account is thus likely being included in calculation of your revolving percent utilization, and thus having a negative scoring effect if the % util is high. Thus, it is likely worth getting updated to show that it is currently $0 with each CRA.
I would begin by making an informal call to the creditor and remind them of their obligation under FCRA 623(a)(2) to have promptly updated their reporting with each CRA so as to reflect its current accuracy.
If an informal request does not result in correction within the next regular reporting cycle,then file a formal dispute contesting the continued showing of a debt balance after they have sent a formal 1099c that cancelled any remaining debt obligation.