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How do I get collection removed from credit report when it is false?
Anonymous3 views4 answers
I have a collection showing up on credit report that is incorrect. The collection is for an unpaid internet bill. The original creditor (AT&T) has acknowledged via phone call to customer service that there was an error in their billing, but to date they have not cleared this amount from my account which has been closed now for 2-years. I've made numerous phone calls to them. I've disputed this item twice and even wrote the collection agency explaining the situation, but each time it comes back as valid because AT&T has yet to clear out this balance. How do I get AT&T to cooperate and $0 out balance or get collection agency to remove this from my credit report. I'm trying to purchase a home and I'm sure this must have an affect on my credit score. Thanks in advance for your time.
All three credit reporting agencies, Equifax, Experian, and Transunion allow you to dispute an item on your credit report. Some allow you to do this online and fill out a dispute form. I would fill out the dispute from and send in any evidence you have that the credit report is incorrect. It takes up to 60 days for the creditor to respond. If they don't respond the item is removed, if they do they have to provide proof of the debt and then you have a right to respond to that proof.
Make sure you keep copies of everything, and that you follow the dispute procedures to the letter. If the negative remark is not removed, you may be able to sue the credit bureaus and AT&T for damages under the Fair Credit Reporting Act. Look for a consumer's attonrey in your state by going to the Nation Association of Consumer's Advocates' website:
www.naca.net
.
I hate to always have to say it, but there is little option besides litigation. The debt collector (a third party, unless you are in CA, FL, or a few other states that protect against collections by the original creditor) could be liable under the Fair Debt Collection Practices Act (FDCPA) for attempting to collect a debt that is not owed, and likely for continuing to attempt collection after full notice of dispute and refusal to pay.
AT&T could be liable IF you disputed it to the national consumer reporting agencies first (See 15 U.S.C. §1681s-2(b). You can only sue a creditor for inaccurate credit reporting AFTER it receives your dispute through the CRAs (indirect disputes instead of the direct ones sent to AT&T or the debt collector - whoever is in your credit report itself)But AT&T uses a force arbitration clause to keep consumers from using the courts against it. Details are AT&T's site - Google "DISPUTE RESOLUTION WITH AT&T BY BINDING ARBITRATION". Still - Typically, AT&T will settle early in arbitration to avoid the arbitration fees it must pay. But follow the rules in the AT&T contract.
Lastly - the CRAs have their own heavy obligations to substantively investigate your disputes made to them. They are not permitted to - but ALWAYS do - "parrot" what the creditor/furnisher tells it. When you dispute the account to the CRAs, they send an automated dispute to AT&T or the reporting debt collector ad ask it if it wants to continue to report the disputed item. If the furnisher says yes, the item remains. The FCRA provides substantial remedy.
You must follow the instructions for each major credit reporting agency for disputing a bad entry on a credit report. Short of that, there really isn't an easy way to get a large corporation such as AT&T to cooperate. Start with the reporting agencies, not the collection agency or AT&T.
