@Anonymous wrote:Hi,
I'm about to dispute a collection on my credit report but I am a little confused.
I'm disputing an American Web Loan from 2012 (in collections with Midwest Recovery Systems).
The initial loan amount was for $600, but now it shows a balance of $1860 (%300 interest). I wasn't
aware of this interest rate when I signed, as AWL said all details would be sent after I was approved.If I file a dispute with the CRA should I ask for "debt validation" or should I cite how the loan is illegal
because it is a predatory loan charging an unreasonable interest rate, and is unlicensed in California?Or, should I just file a complaint with the CFPB?
Which route is the best for my situation?
Thanks for any advice
Before you dispute anything you first need to know the DoFD of the account and whether this is updating monthly. Debt validation isnt something you would ask a CRA for that is used when a collection agency is involved and in most states its only valid in the first 30 days of a collector obtaining a collection. You can post the DoFD and whether its updating monthly for the course to take if it is. I dont know who these people are but if they are payday lenders you are going to want to check and see if they were involved with the settlement on illegal online payday loans if so there are other remedies available to you as well.
@Anonymous wrote:
Thanks for the reply. I managed to find the DOFD date from a prior 2018 Transunion report....it is 1/10/2013. I can't tell if it's updating
because any new credit report I see doesn't show the DOFD on it for this collection. What would you advise?I understand what you are saying about the payday lenders and will definitely look into the settlement regarding illegal online payday loans.
Thanks again
Be sure to keep that report that clearly shows the DoFD. I would first see if they were involved in that settlement if they are then make a demand that they remove the TL from your CRs and if they dont then you can take your case to the states AG.
