USAA not reporting settled charge-off correctly.

[chancep]

I'll make this as short as possible...

-I had a charged off account with USAA for (roughly) $1200

-I settled with a collection agency for $600

-USAA updated my report saying that I still owe $600 and the account is still "derogatory" instead of "paid"

-USAA said that even though I had a settlement they are still allowed to report that I owe $600

-Collection agency said that they are going to send me documentation to show that I had an agreement so I can dispute it (I have all the calls recorded as well)

How would you advise I go about getting this corrected? Is there a possiblity of having the entire account removed due to incorrect reporting?

I have a second account with USAA being "handled" by a different collection agency. I have a settlement agreement with them as well, I just paid them $1400, and will be making another $1400 payment before the end of next month in order to settle a $5k balance. Should I wait to see how USAA handles the reporting of that account before making a move on this account?

Thanks for the advice!

[RobertEG]

The current inaccuracy is that they have failed to update the account to show a current balance of $0.

If the debt was agreed to have been discharged by the payment of the amount specified, they are required to promptly update the balance to $0.  FCRA 623(a)(2).

Any dispute would relate only to that asserted inaccuracy, and would be basis for getting the balance corrected to $0.  It would not relate to the accuracy of any other reporting, and thus would not be basis for getting the entire account deleted as a "penalty" for inaccurate reporting.

Dispute the accuracy of the reported balance via the CRA.

If they verify, then the reasonableness of their (the furnisher's) investigation of your dispute can thereafter become the subject of your own private civil litigation.

However, a consumer has no right to bring private civil action against a party based on their having reported inaccurate information to a CRA.

Begin by filing a dispute with the CRA.

[Anonymous]

I just looked at my report and they did the same to me! I copied the written offer and payment and disputed the balance on all three reports. I don't see how this isn't changed but only time will tell.

[chancep]

They basically told me over the phone that they are allowed to report the remaining amount as balance due as I never paid them that money, even though I have a settlement agreement with them. Obviously we all know that is not correct, but I sent them my settlement agreement along so we will see what they say. 

Like I said, I am currently in the middle of paying a 2 part settlement on another card I have with them, so after that is paid and reported, I will take further action to correct both accounts, assuming they don't do it on their own. Such BS.

[chancep]

Keep us posted on what happens for you!

[Anonymous]

They did the same thing to me.

[chancep]

And now?

[RobertEG]

File a dispute with the CRA.

You neeed that first in order to thereafter bring civil action for lack of reasonable investigation of your dispute.

You can also file a formal complaint with the CFPB if you have clear proof of satisfaction of the debt.

CFPB inwuiry back to them may be the prod necessary fot them to update properly.

[chancep]

Received a letter for USAA (on 4/25) stating that the account is settled in full for less than original amount and is reported accurately to the credit bureaus. Just paid for a 3b report, account is still listed as open with a 3k+ balance.

[chancep]

Complaints to the CFPB got everything squared away. Glad I recors every phone call I make