Getting debt collectors and creditors to update your credit report long after you paid.
I had three credit card accounts that I worked with a law firm to negotiate reduced balances. They negotiated settlements with all three accounts (after paying the law firm a fee). One of the three credit accounts is still showing open on my credit report. A settlement was reached in January of 2010 and payment was made in Jan 2010. The law firm has since closed its business. i have emails of the settlement as well as letter from the account holder that acknowledges the settlement. I have a bank statement that shows payment that matches settlement and the date.
How do I go about getting the creditor to acknowledge payment was made on the settled amount and remove the debt showing on my credit report?
—Michael
It sounds like you have what you need to get the credit reporting issue resolved. You will need to send a dispute to the credit reporting agencies that are not reporting the settled account properly. You can also send a copy of the dispute letter to the credit card bank that is reporting in error. You can include a copy of the settlement letter and the proof of payment. Send the dispute to both places certified mail return receipt requested.
You should get a response from the credit reporting bureaus within 30 days of them receiving your letter. Please come back to this page and update what happens with your dispute letter by posting a comment reply. If they don’t fix the error there are some additional tips I can give you.
I have a couple of questions for you. If you can answer them now, I may be able to respond with more than just general feedback.
Who was the account settled with? Was it the credit card issuer, a debt collector, or a debt buyer?
Who is reporting in error? The original bank or a third party?
When you say open account do you mean the account is still showing a balance owed? Is the account not marked as settled?
Anyone with questions about getting your credit reports updated with current and accurate information – after resolving collection accounts – is welcome to post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
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