So I started the dispute process. And a ding popped up on credit karma. The cards I disputed as obsolete. Been closed for over 8 years and were charge offs are now reporting as new. How does this affect me and what do I do?
Question #1) Who is reporting it? The FCRA prohibits the DF who was reporting an account which was disputed from appearing back without providing notice, but it doesn't keep another company from reporting a similar account. The problem comes in what they reported as the DoLA, more than likely, they either didn't report a DoLA, or reported an incorrect DoLA for the account. Irregardless, my first steps would be the following. If it's a CA reporting, I would send a letter stating that (a) the account is disputed, (b) I demand validation, (c) they are reporting false and misleading credit information. If it's the OC reporting, I would send a letter stating that they are reporting incomplete, inaccurate and unverifiable information, and willingly and knowingly reporting an account with an incorrect date of last activity to violate the Fair Credit Reporting Act. Then I would send a dispute to all of the CRAs for the new tradeline as incorrect DoLA, and OBSOLETE, and see what their response is. I would be prepared to do everything a few times, and be ready to file a suit against both the DF and the CRAs for violating the FCRA.
Do you have previous credit reports showing the DOFD .... OR .... can you prove the date was sometime in 2007? Do CK reports show this?
Listen when you say that your card which is closed for like 8 years and now reporting as new, you must be the one which deals with the flaws of the system, I don’t think it is bad because these banks who release credit cards depends on some of the back end firms which take care of their entire technical process of card issuance and termination, report it as soon as possible because there are many people who can study your case and find a way to do frauds. There are chances that bank may award you for this.
BB: There are a lot of questions which we are still waiting for the OP to answer. Is the account now being reported by the same company as it was originally? If not, is it being reported by a collection agency, lawyer, junk debt buyer? Do they have the records of what it was showing previously? Do they have the records of it being deleted as obsolete (not just that the DF deleted it; and the CRA response was that the entry can't be found)?
I apologize for the delay. Same company reporting. I disputed it as obsolete because it was a charge off. They updated it as paid but reporting as new. Meaning instead of last activity being in 2008 it is reporting last activity 3/2015. Only Experian is holding onto this account. All others deleted. However its not necessarily negative anymore since its now registering as paid. I wanted to see what the other CRA'S did with the account.
Last Activity doesn't mean anything; Date of First Delinquency is the only date that matters. Do you have the results page that showed that the account was actually DELETED based on the obsolete dispute? (Sometimes the DF receives the dispute, sends an update to DELETE the information OUTSIDE of the actual dispute process, and then the CRA sends a results summary that says something similar to the disputed information can not be found on your report.) If the information was actually deleted as a result of the dispute, the CRA has to provide you a notice of re-insertion when they place it back on. Are there ANY negative notations on the account, payment history, etc? Or is it showing as a 100% positive account, zero balance, never late, paid, etc? If there are no negative traits on the trade line, I would typically let a sleeping dog lie.
So did you let the sleeping dog lie nixiejean? Jam is right- DOFD is really the only date that matters. If the account was reporting as 100% positive, I wouldn't have done anything either.