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Gardenmum

Disputed debt confusion

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So glad to have arrived on this forum.  Thanks in advance for your advice!

 

Someone I know has been disputing the balance on a CC account for over 7.5 years.  Since disputes can disqualify a person from obtaining certain types of loans, I'm assuming that disputes are considered a "negative" item on a credit report.

 

If so, shouldn't that dispute have been removed from a credit report by now?

 

The account in question was also closed over 7.5 years ago.

 

Thanks!

Edited by Gardenmum
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welcome!

 

exactly what is being dispute and with whom? how is the account reporting to the CRAs?

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Age of the account or even the length of time a balance has existed has no bearing on reporting.  What DOES matter is the date of first major delinquency from which the account never again became current.  I don't see THAT date in the OP...

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Thanks, Hegemony and Centex for your quick responses!

 

What's been disputed is the balance on a CC account, that's never been reported as delinquent (probably because it was never over a few days past due before the balance was disputed).

 

The OC, in letters to the debtor stating the balance is correct, has also stated that the last payment was over 7.5 years ago.

 

Hope this makes sense.

 

Thanks again for any further help!

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your friend needs to determine the DOFD for the tradeline and how it is reporting to the CRAs.

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Thanks so much, Leagleagle2012 and hegemony!

 

Legaleagle, how do you suggest an inquiry be made as to why it hasn't dropped off?  Contacting the OC would be like "poking the bear."  I'm wondering if contacting the CRA might have the same effect?  Not sure of the best course of action.

 

Hegemony, I'm a bit acronym-challenged.  Not sure what DOFD means.  Is it "date of first delinquency?"  If so, might this mean the FIRST date when a payment was not paid on time?  (If so, I think that date is documented, although not reported to the CRA.  There's a good record of the collection calls after a payment due date passed.)

 

Thanks again!

 

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4 hours ago, legaleagle2012 said:

Sounds like it should have dropped off by now. If it hasn't, find out why not.

They admit the account has never been reported as delinquent.  This subjects it to the 10-year window since it is not a derogatory item. 

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1 hour ago, Gardenmum said:

I'm a bit acronym-challenged.  Not sure what DOFD means.  Is it "date of first delinquency?"  If so, might this mean the FIRST date when a payment was not paid on time?  (If so, I think that date is documented, although not reported to the CRA.  There's a good record of the collection calls after a payment due date passed.)

If you hover your mouse over any of the acronyms, a box appears showing you what it means. Doesn’t work on a mobile device though. 

But yes, DOFD is date of first delinquency. It’s the date that you first went 30 days past due and never brought the account current. 

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Thank you Centex and DPB!

 

Centex if the "10 year window" applies, that presents a bit of a conundrum. 

 

This person has written an balance dispute letter every month for over 7.5 years.   If that person stops writing dispute letters and the account switches from disputed, to "charged off" or some other negative term,  does that mean the 7.5 year "CRA clock" starts ticking again? (Even though the first TECHNICAL date of delinquency was over 7.5 years ago.)

 

Thanks!

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so after 90 months of initiated disputes the four major CRAs have not resorted to "your dispute is frivolous" replies?

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27 minutes ago, hegemony said:

so after 90 months of initiated disputes the four major CRAs have not resorted to "your dispute is frivolous" replies?

The dispute letters were sent to the OCs, not the CRAs.  The OCs always responded that the account balances were correct.

 

Not a peep from the CRAs.   Just a a recurrent listing of the disputed account.

 

Thanks!

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If the account never went to a reportable thirty days late, then you are not delinquent and there is no derogatory information to be deleted at the seven year mark.  Positive accounts typically remain for ten years following the closure of the account.  A dispute of something does not alter this reality. 

 

Dates would be relevant if there had actually been derogatory information that was reported. 

 

A CRA has no obligation to report an account as disputed if you have never made a written dispute with them (and do NOT do it online).  If it matters, then put a stamp on it. 

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On 9/10/2019 at 10:33 AM, Gardenmum said:

I'm assuming that disputes are considered a "negative" item on a credit report.

The reasons they are viewed as a negative is that 1) mortgage underwriters long ago became wise to the game of trying to 'hide' debt by way of a dispute and 2) the amount is still potentially due and owing and thus impacts DTI ratios.  

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1 hour ago, Gardenmum said:

The dispute letters were sent to the OCs, not the CRAs.  The OCs always responded that the account balances were correct.

 

Not a peep from the CRAs.   Just a a recurrent listing of the disputed account.

 

Thanks!

what was the reason for writing to the creditor once a month for 90 days? merely to try to play FICO games?

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Can we back up a second?

 

1)  Is there any evidence of adverse information reporting on the tradeline with any CRA

2)  Is there any indication of a dispute having been entered by the account holder on the credit report?

 

I'm getting the impression from this thread that the answer to both of these questions may be "no".

 

If the answer to Q1 is "no", then we're back to Centex's assertion that the account is rated as a positive account and will remain reported for up to 10 years since date of last activity.

 

I'm not sure the answer to Q2 even matters.  If the dispute has been entered to the credit report, it's either been supported or refuted by this time and has been closed out.   It's certainly not pending with an open status.

 

For what it's worth, what exactly is being disputed about a past reporting balance.  Is this account paid in full, or is there an unpaid balance.  You've never been at all clear what exactly is in dispute and why.  (I'm really scratching my head over why one would persist disputing a past reported balance on an account if it doesn't impact the current reporting status ... enlighten me.)

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6 minutes ago, hdporter said:

Can we back up a second?

 

1)  Is there any evidence of adverse information reporting on the tradeline with any CRA

2)  Is there any indication of a dispute having been entered by the account holder on the credit report?

 

I'm getting the impression from this thread that the answer to both of these questions may be "no".

 

If the answer to Q1 is "no", then we're back to Centex's assertion that the account is rated as a positive account and will remain reported for up to 10 years since date of last activity.

 

I'm not sure the answer to Q2 even matters.  If the dispute has been entered to the credit report, it's either been supported or refuted by this time and has been closed out.   It's certainly not pending with an open status.

 

For what it's worth, what exactly is being disputed about a past reporting balance.  Is this account paid in full, or is there an unpaid balance.  You've never been at all clear what exactly is in dispute and why.  (I'm really scratching my head over why one would persist disputing a past reported balance on an account if it doesn't impact the current reporting status ... enlighten me.)

almost sounds like misguided attempt to keep a maxed out card out of FICO calculation by having it declared in dispute. :unsure::dntknw:

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20 minutes ago, hegemony said:

almost sounds like misguided attempt to keep a maxed out card out of FICO calculation by having it declared in dispute. :unsure::dntknw:

Possibly ... but WhoTF can really say what the situation is here?  (And I don't think that you can keep a perpetual dispute in place to achieve that goal.)

 

This thread loosely brings to mind the proverbial story of "the blind men and the elephant" ... all of the contributions to this thread suffer from a blindness to solid underlying details ... we're all stabbing away with answers to a problem that has no solid shape (as of yet).

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7 minutes ago, hdporter said:

Possibly ... but WhoTF can really say what the situation is here?  (And I don't think that you can keep a perpetual dispute in place to achieve that goal.)

 

This thread loosely brings to mind the proverbial story of "the blind men and the elephant" ... all of the contributions to this thread suffer from a blindness to solid underlying details ... we're all stabbing away with answers to a problem that has no solid shape (as of yet).

we need Paul Harvey to chime in

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Even though lots of lenders view disputes with a jaundiced eye, a dispute is not a legally negative item subject to the FCRA SOL. It's a status that you dispute something. Easy way to fix it is to withdraw your dispute. In writing. They don't report historical disputes, only that something is currently disputed. So write a letter saying you no longer dispute anything in the account reporting.

 

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Wow, this IS a busy forum!  Really glad to know that!

 

I'll try to clarify:  The debtor says the still unpaid balance on the closed account has been wrong for over 7.5 years, hence the monthly letters to dispute the balance.  In response to the dispute letters, the OC has always stated that the balance is correct, all the while making mistake after mistake (removing interest charges, adding them back in incorrectly, etc.).

 

The OC has reported to the CRA that the account balance is disputed (not sure of exact wording).  The debtor has never communicated with the CRA about this matter.

 

It seems as though (based upon what's been written above) if the disputed account isn't considered a "negative" account and if the debtor continues to write balance dispute letters -- the account it may fall off the credit report after 10 years.

 

Two questions:

1)  Is that assumption correct? ("falling off the report" after 10 years)

2)  If the debtor stops writing dispute letters, what's your best guess as to what the OC would do next? List it as a charge off that will lurk on the credit report for another 7.5 years?  Mail stink bombs?  

 

I know this is a weird situation, so thanks again for your explanations AND your patience! 😀

Edited by Gardenmum

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How is the closed account notated? A CO, IIB, etc.? How does the account report on the paper credit report (minus any personally identifying info)? You really haven't given us enough info for an informed answer. 

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If the account shows an unpaid balance 7.5 years old it should already have dropped off. Disputes don't reset the SOL on negatives.

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10 hours ago, cashnocredit said:

If the account shows an unpaid balance 7.5 years old it should already have dropped off. Disputes don't reset the SOL on negatives.

They have not indicated there were notations of delinquency...and they keep avoiding the question about HOW it is reporting.  It comes across as one of the DB DB's that focuses on minutia and avoidance of any sort of actual answer to questions that might actually have addressed a means of resolution.

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