I applied for a CC and loan today and have a handful of collections in dispute. The bank said they view the disputes as items that will stand after the dispute is complete. I was told my score is good enough to qualify for the loan & cc, but the collections disqualify me for both. Two questions: What does the law say how the lender must treat these items? What have you said to a lender in the same situation? Thanks for the advice...
That is why the lender gets the report and not just the score. It is their decision to decide what to do about the derrogatories and whether or not they want to take the risk in loaning you money. Sometimes it depends on what the derrogs were. Many ignore collection accts that are medical bills. I have never worked with a creditor. I either got the loan or I didn't. maybe someone else can give you advice there.
Nothing. I have never read any statute that addresses a situation such as this. That depends on why the collections were being disputed. If it was a reason that was kosher to tell them, I would. Otherwise, ask for reconsideration after they have been deleted.
