Need Help! Dispute with CRA or OC?

[carco]

Hi...

I had a credit union checking account that was charged off.  It went to a CA and I eventually paid the amount in full ($390) to the CA.  The CA is reporting "Paid, Closed" to Experian but not reporting at all to TU or Equifax.  I sent a GW to the CA and have yet to hear back.  If denied, should I continue GW or can I dispute?

The real problem is the OC (credit union) is reporting as such on the credit report below.  I apologize for the lengthy post but I really need help with this.  Clearly since I already paid the CA in full, why is the credit union still reporting to the CRA that I have a balance/past due.  Is this grounds for a dispute requesting deletion of the entrire tradeline because of inaccurate information?  Who do I have a better chance of this happening with, OC or CRA?  Thanks for the help!

TransUnion                                                                         Equifax                                                                                  Experian

Condition: Derogatory                                                     Type of Account: Open                                                        Status: Account charged off.  written off $487.  $390 past        

Balance: $390                                                                   Date Opened: 01/1999                                                                    Due as of Feb. 2012

Type: Deposit related                                                       Date Reported: 02/2012                                                    Date Opened: 01/1999

Pay Status: Collection/Charge-Off                                 Date of Last Payment: 04/2012                                        Reported Since: 04/2010

Past Due: $390                                                                 Date Major Deliquency First Rported: 04/2010             Date of Status: 04/2010

HIgh Balance: $0                                                              Charge Off Amount: $487                                                  Last Reported: 02/2012

Terms Limit:                                                                       Balance: $390                                                                     Type: Deposit

Payment:                                                                             Amount Past Due: $390                                                    Terms: 1 Month

Opened: 01/25/1999                                                        Date of First Deliquency: 03/2010                                    Monthly Payment: $0

Reported: 02/29/2012                                                      Type of Loan: Deposit Related                                         Credit Limit/Original Amount: Unknown

Remarks:  Charged off as bad debt                                                       (Overdrawn Account)                                 High Balance: NA

                    Profit and loss write-off                                Comments: Charged off account                                     Recent Balance: $390 as of 02/2012

                                                                                                                                                                                              Recent Payment: $0

                                                                                                                                                                                               Account History: Charge off as of Apr 2010 to Feb 2012                  

[DaveSignal]

Unfortunately, both the OC and CA can report.

You would send GW to the CA to try to remove the CA.

You can send debt verification letters to the OC or CA, but disuptes are usually done with the CRA when there is inaccurate information on your reports.  There are ways to get things removed by disputing anyway, even if accurate, but sometimes it can cause other problems (such as an old CO being verified and then appearing as a brand new CO in your payment history and hurting your FICO).  It is also considered unethical and myFICO doesn't approve of such methods being advocated, so you should search for some other credit repair forums if thats what you want to do.

[carco]

I am not asking to dispute accurate information.  And, I have posted exclusively on this forum for legitmate assistance in solving my credit issues. 

I posted my tradelines so those who can help me see that the OC is reporting a balance or past due.  I already paid the CA in full which should have been communicated back to the OC that the debt was satisfied.  In this case I am asking should the OC be reporting $0 balance / past due?  And if this is true, do I have a case to dispute this inaccuracy?

[calihlove75]

I would imagine approaching both and requesting a deletion out of goodwill.

I recently had a problem with an old collection that was charged off and sent to a collection agency. I had never heard anything about the debt until years later discovering it on my report. The debt occurred after hurricane Katrina and I begged, cried, and pleaded with the collection agency to delete if I paid considering the circumstances. They repeatedly refused and I got so desparate that I begged and pleaded with the original creditor to convince the collectiion agency to delete and accept the payment...lol.  Again, the lady was understanding and sympathized but said there was no way to get the account back from the collection agency. I just was not talking to that right person. I ended up filing a BBB against the original creditor in hopes that my problem would get routed to that right person and low and behold, the original creditor took that payment and said they would tell the collection agency to delete and she kept her word because it is gone. From BBB to the collection deleted was 3 days. Considering I have spent 6 months going in circles over this that was awesome.

[DaveSignal]

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@carco wrote:

In this case I am asking should the OC be reporting $0 balance / past due?  And if this is true, do I have a case to dispute this inaccuracy?

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You could try disputing then  Also try calling the OC and ask them why they are reporting a balance.  Maybe you owe money still.

[carco]

I spoke to the OC today and a representative said the account was "Closed" and could not tell me if they sold the account to the CA.  She said I would have to contact the CA to find out that information because I pretty sure she said the credit union does not have the account anymore even though I paid the CA in full.  I do not owe anymore money.  In this case, would another dispute be valid becasue Equifax is reporting OPEN under Type of Account?  Hard to believe the credit union would not know the details unless I am speaking to the wrong person.  She did offer for me to go into to the branch and ask for details though.

I sent out a GW to the CA last week, should I call and find out if they indeed bought the account?  I am hesitant because I have already verbally asked for a GW over the phone but was denied thus the GW letter in the mail. 

[calihlove75]

If the Original creditor doesn't have the account information, I would imagine if you disputed it  with the CRA that it could not be verified and would be deleted.

[calihlove75]

As far as the goodwill to the CA, don't give up and send it to them weekly if you have to. Maybe they will get sick of you and delete it. The reason I mentioned BBB complaints is because it has yielded me good results twice when I felt like I was going in circles.

[carco]

So, sending the GW weekly is not a bad idea huh?  Should I send the same letter over and over?  Or should I modify it each time I send a new one?

[RobertEG]

Yes, if the debt was paid, the OC was required to update the status to paid and the balance to $0.

Once the OC has reported, they are required to maintain the accuracy of the reported information. 

If the OC sold the debt, they would have been required to update to $0 at the time they sold the debt.

So regardless of debt ownership, the OC is still required to update the fact that no debt is now owed to them.

If the collection was an assignment and the OC still owned the debt, payment to the debt collector required the debt collector to notify the OC of payment, and the OC to then update the debt balance to $0.

So failure to have updated to $0 makes the current reporting inaccurate.  You can dispute, however the result of a dispute does not compel the furnisher to delete the inaccurate information, and certainly not the CO, as it would not even be information subject to the dispute.  They can simply update to make it accurate.  Deletion is only required if the information cannot be verified as accurate or updated to overcome the inaccuracy.