Same Debt reporting on credit report

[Erika3o3]

So I have a one main financial personal loan that was charged off for about $6000 on my credit report. It was sent to a collection lawyer named CACH LLC.  I payed a settlement on it. Cach LLC ended up removing it from my credit report. However One Main is reporting it 2 times on my credit report and the account numbers for both are different even though its for the same debt. How is that even legal?

[RobertEG]

If there is or was only a single account agreement with the creditor, there should only be a single account reported by the creditor.

You should dispute the duplicate account as being inaccurate and compel an investigation by the creditor, and reinvestigation by the CRA.

That should result in removal of the duplicate account, and only one account reporting.

If they verify the accuracy, and thus dont remove, you then obtain the right to pursue the inaccurate double reporting by filing of a civil action.

You cannot directly bring civil action based on inaccurate reporting until you have first filed a dispute, and provided them the opportunity to correct.  See FCRA 623(c).

[Erika3o3]

RobertEG,

So I got back my dispute today and they have said that both account will remain and are valid. So at this point with a civil action how would I go about something like that? Would I be going after One Main Finacial who is the one reporting 2 different account numbers for the same account?  How would I start? I have never had to speak to a lawyer or anything before.

[bass_playr]

First, CACH is not a lawyer, it's a debt collector.  I would be interested in knowing if they bought it from One Main or if they were just collecting on behalf of One Main.  More on that in a minute.

Second, are the two One Main entries still updating?  Are they showing a balance still owed?  In other words, are they reporting correctly--never mind for a second that there is a duplicate.  You need to make sure that however they are reporting is correct.  If they report that it's a negative account but that it's paid, then it is still accurate.  If they are reporting that you still owe the debt even though you paid CACH, and they are updating it as such, then it's not being reported accurately.  It's not just the presence of this on your report, but also the content they are reporting, that I would double check.

If you find that it's reporting correctly, then the only issue is the duplicate.  Once you've disputed that through the credit bureaus, and it comes back as verified, then the FCRA allows you to take action in court.  

You might find that, even though it came back verified, that it's still reporting in error.  Example, they might be reporting that you still owe $$$.  If that's the case, then your issue now expands to include false reporting.  

What is your goal in this?  If it's just to have the dupilcate removed, you might try a CFPB complaint or a BBB complaint.  No guarantees, but a lot less time and effort than court--plus, it's free.  Sometimes, these companies are swayed to move when they realize that hey stand to gain nothing, but could end up having to pay you for their mistakes, they give in and remove the reporting.

[Erika3o3]

So the account has not updated that it has been paid. Even though I just disputed it and said the account had been paid and there is a duplicate account. It all came back verified. So it is still just showing as a charge off - transfered to another lender. Here are both of the accounts reporting on my report.

[Erika3o3]

bump

[bass_playr]

OK, best I can tell, this is not supposed to update.  They report it as closed, and they report correctly that you have a zero balance with them.  

The issue I see with them is that they are reporting two accounts where you only had one.  CACH is who you paid, correct?  CACH needs to reflect that on any credit reporting that they might do, but since these already show a zero balance and closed, there's nothing more for them to update.  As far as they are concerned, the account WAS closed and you DO owe them nothing.  

Once you dispute through the CRAs, you then have the right to private action, which means you can then sue them.  But you might try something else first.  If I were in your shoes, I would contact the CRAs and request a reinvestigation.  I would send them proof that you paid CACH on this account, and I would also reiterate to them that you never had two accounts, only the one.  Chances are good that they will come back saying it's still all verified, but then you can pursue legal action against the CRA as well, for failing to conduct a proper reinvestigation.