Ok - 2 years ago my wife and I pulled our kids out of a daycare center with short notice due to strong suspicions of abuse and unsafe conditions. Our agreement at the time required paying 2 weeks tuition per kid without sufficient notice. We disagreed strongly with this, argued back and forth, and eventually the owner took us to small claims court. Long story short we decided to just settle, reached a payment agreement, and the case was closed. (We were recently vindicated - they lost their license and shut down due to the same concerns we raised. Going to try and get our money back + damages.)
Fast forward to today - applying for a mortgage, loan officer says Transunion is showing the small claims case on my credit report as a negative mark. I've gotten pre-approval from two other lenders and nobody has mentioned it, and when I sign in to dispute it I can't see it. What's going on? I called the court to verify the case was closed and that we're in good standing. I've pulled all three reports recently, and subscribe to MyFICO. Never seen it on there before. I'm going to call TU and inquire, but does anyone know how the heck this got on there and why I can't see it?
They are most likely getting the info from other companies, lexis Nexis most likely, could also be sagestream. You need to get copies of the info they have on you and dispute any errors then freeze them so no one can get any info off them. The CFPB maintains a list of credit reporting agencies.
From the facts provided in the post, it appears that you entered into a pre-trial agreement that disposed of the case.
Did the plaintiff then notify the court of your settlement, resulting in the court dismissing the civil action without any trial or ultimate judgment?
It appears that you have a case where a vendor picked up the case from public record documents relating to the filing only of the civil action, and then incorrectly reported it to the CRA as a judgment.
I would get a copy of the court records showing that the court dismissed the pending civil action, and use the case file document to support a dispute with the CRA of the accuracy of showing a civil judgement in your credit report.
It should be a slam dunk removal if the court actually dismissed the case without any trial or award of judgment.