MyFico Account Alert Change RE: Disputed Item

Anonymous · ‎07-16-2015

I have recently disputed the balance and open and close dates regarding an old unpaid charge off on my account from 6+ years ago.

I got an alert today that my EQ score had changed. The myFico alerts indicate that the specific account has be disputed by the consumer and my score has jumped 77 points.

Does myFico handle disputed (or ignore) items in the CR if they are marked as "disputed"? Or is there a chance that EQ got an answer back from the creditor in less than a week and the account was removed for some reason?

I guess I just don't understand that if the item was deleted from the CR why myFico's alert doesn't say "deleted". I have not heard anything back from EQ as of yet.

Thanks

Anonymous · ‎07-16-2015

I've had the same issue. I received an alert after I disputed a credit card from 4 years ago. My score jumped by 27 points but the account was still listed on my credit report as "open" and "disputed" but after one week the account fell off. I did the same thing for two other credit cards and the same thing happened: "open" and in "dispute" and my score jumped again by 15 points. Now I'm curious to see what happens in one week.

Anonymous · ‎07-16-2015

@Anonymous wrote:
I have recently disputed the balance and open and close dates regarding an old unpaid charge off on my account from 6+ years ago.

I got an alert today that my EQ score had changed. The myFico alerts indicate that the specific account has be disputed by the consumer and my score has jumped 77 points.

Does myFico handle disputed (or ignore) items in the CR if they are marked as "disputed"? Or is there a chance that EQ got an answer back from the creditor in less than a week and the account was removed for some reason?

I guess I just don't understand that if the item was deleted from the CR why myFico's alert doesn't say "deleted". I have not heard anything back from EQ as of yet.

Thanks

Yes, certain aspects of a disputed account are removed from the scoring algorithm. This is why Mortgage lenders will not approve loans when there are accounts in dispute.

Anonymous · ‎07-16-2015

I just hope it falls off of my credit report. That would be an ideal situtation!

Anonymous · ‎07-16-2015

@Anonymous wrote:
@Anonymous wrote:
I have recently disputed the balance and open and close dates regarding an old unpaid charge off on my account from 6+ years ago.

I got an alert today that my EQ score had changed. The myFico alerts indicate that the specific account has be disputed by the consumer and my score has jumped 77 points.

Does myFico handle disputed (or ignore) items in the CR if they are marked as "disputed"? Or is there a chance that EQ got an answer back from the creditor in less than a week and the account was removed for some reason?

I guess I just don't understand that if the item was deleted from the CR why myFico's alert doesn't say "deleted". I have not heard anything back from EQ as of yet.

Thanks
Yes, certain aspects of a disputed account are removed from the scoring algorithm. This is why Mortgage lenders will not approve loans when there are accounts in dispute.

I am looking to apply for auto financing in the next couple of weeks. I am wondering if this is going to have a negative impact on me? I didn't think that there would be any negative effect to disputing the account since the account is approximately 1 year away from dropping off, but I won't dispute the account with the other CBs if it is going to somehow improve my score (even temporarily) but at the same time hurt me by having something marked as "disputed"

RobertEG · ‎07-16-2015

The FCRA requires the CRA to complete their reinvestigation within 30 days for filing of the dispute (unless the consumer files addtional info with the CRA after first filing the dispute, which then extends the reinvestigation period to 45 days), and to send the Notice of Results of Reinvestigation within 5 business days after concluding their reinvestigation. At that time, the CRA must promptly remove the pending dispute flag, which then returns the account to normal FICO scoring.

The CRA does not remove or delete the showing of the dispute, it only updates its status to show concluded.

Thus, you should not have an issue with a dispute effecting scoring for more than approx a month and a half.

Anonymous · ‎07-16-2015

So this could put a damper on my much needed auto loan in the next 7-14 days....Has anyone heard of an auto loan being denied specifically because any 1 single item is in dispute?

Anonymous · ‎07-16-2015

I had disputed several items when I got my auto loan. I bought a car through a dealer who got it from CapOne at a high interest rate of course. It might factor in the interest rate but I am pretty sure it won't prevent you from getting approved. I had SEVERAL items disputed!

Anonymous · ‎07-16-2015

Ok, well I am hopeful interest rate won't become an issue. My actual disputed score has gone up significantly so it won't be strictly the score that will hurt it is the potential a disputed item can bring.

Worse case I guess is I balk at the financing offered and walk away.

Anonymous · ‎07-16-2015

@Anonymous wrote:
Ok, well I am hopeful interest rate won't become an issue. My actual disputed score has gone up significantly so it won't be strictly the score that will hurt it is the potential a disputed item can bring.

Worse case I guess is I balk at the financing offered and walk away.

Mortgages is where people tend to have problems with this. Reports are more highly scrutinized for a mortgage, whereas auto lending is pretty much just score based.