Disputing Incorrect Info on a Credit Report (long)

IBackBevo

Has anyone had any success of getting something off your credit report after a "investigation" and "re-investigation" by a credit reporting agency?

I will try to make this as brief as possible.  In September of 2011, I went to the ER.  My co-pay should have been $150.  For some unknown reason, the billing department did not run my medical insurance and several months later I got a bill for over $1500.  I called them, gave them my insurance, they said they would run it, etc. Next month, I get yet another bill for the same amount. Again, I call them. They try to tell me that I don't have medical insurance -- which is not true.  I contact my insurance company who tells me they have never received a claim from the hospital.  I call the hospital back and give them my insurance information yet again and they say they will run it. The next month - the EXACT same thing happens!  I get a bill for over $1500, I call the hospital, they say I don't have insurance, I call the insurance company who says they have never received a claim and so on.  This goes on for several months. 

Finally, in late April of 2012, I get a correct bill from the hospital for just my co-pay of $150. The bill has a web address where I can pay online. I go online and make payment for $150.  $150 is debited out of my bank account on May 3, 2012.  I assume that everything is fine.

In August of 2012, I was in and out of the hospital suffering from severe pre-e.  At some point, I get a letter from a collection agency on this same $150 bill that I had already paid.  I ask DH to handle the matter because, well, I was in the hospital on bedrest and I certainly didn't need my blood pressure spiking dealing with these morons. He calls the collection agency, informs them that we made payment and have a bank statement showing we made the $150 payment. They ask him to send in proof showing the payment is made. He does that and we never hear anything else back.  Admittedly, if I had been handling the matter, I probably would have followed back up, but I had bigger things to worry about at that time and I thought the matter had been handled.

Fast forward to 2013.  I run my credit report and this bill (that I have already paid) is appearing as a "collection matter" on my credit report.  I contact the collection agency and they refuse to take it off.  For whatever reason, they will not accept my bank statement showing that I made the $150 payment.  Despite the fact that I feel like I am being extorted, I make the payment yet again. Still, they will not remove it from my credit report AND IT IS STILL SHOWING I OWE $150 DESPITE PAYING THE BILL TWICE!!!

I then open investigations with all three credit reporting agencies and show them proof that the $150 has been paid in the form of my bank statements.  Two of them removed it, but Equifax will not remove it!  I then requested a re-investigation and STILL Equifax will not remove this matter from my credit report.

Is there anything I can do other than sue them?  Anyone have any success with this sort of thing?  I don't understand how I can have proof in the form of a dang bank account statement showing that payment was made and a credit agency still won't take this matter off of my credit report... 

Edit: typo

boogerbearoriginal

Oh man, that is awful - from start to finish sounds like incompetence all around. I don't know if they can help, but perhaps contacting the Federal Trade Commission
Consumer Response Center
Room 130
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
www.ftc.gov/credit

That's who is "in charge" on the federal level. According to their website:

Q: What can I do if the credit reporting company or information provider won?t correct the information I dispute?

A: If an investigation doesn?t resolve your dispute with the credit reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the credit reporting company to provide your state?ment to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

If you tell the information provider that you dispute an item, a notice of your dispute must be included any time the information provider reports the item to a credit reporting company.

mexicolombiana

I just wanted to chime and say that the credit reporting process is STUPID AND BROKEN.  

I see this sort of thing ALL the time.  I would just write another solid dispute letter CCing the collection agency, the hospital, and Experian threatening a lawsuit under the Fair Credit Reporting Act.  

IBackBevo

Booger+Bear:

Oh man, that is awful - from start to finish sounds like incompetence all around. I don't know if they can help, but perhaps contacting the Federal Trade Commission
Consumer Response Center
Room 130
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
www.ftc.gov/credit

That's who is "in charge" on the federal level. According to their website:

Q: What can I do if the credit reporting company or information provider won?t correct the information I dispute?

A: If an investigation doesn?t resolve your dispute with the credit reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the credit reporting company to provide your state­ment to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

If you tell the information provider that you dispute an item, a notice of your dispute must be included any time the information provider reports the item to a credit reporting company.

Thanks for the info! I already sent in a statement of dispute, but it is still affecting my score pretty significantly because my score on Equifax is 30-40 points lower than my score with the other two agencies. It says it will stay on there until 2018 which ticks me off because we hope to sell our house and buy a new home in about a year which will require getting a new mortgage.  I will look into the FTC.

IBackBevo

mbenit4:

What is the reason that Equifax is giving for why they won't remove it?

It is just a form letter, but basically says they have researched the matter and confirmed the information was correctly reported.  I am guessing that they just simply called the collection agency, took their word for the matter and nothing more. 

 

IBackBevo

mexicolombiana:

I just wanted to chime and say that the credit reporting process is STUPID AND BROKEN.  

I see this sort of thing ALL the time.  I would just write another solid dispute letter CCing the collection agency, the hospital, and Experian threatening a lawsuit under the Fair Credit Reporting Act.  

Thanks for replying.  I will do that. 

mittensonkittens

I had a similar problem a few years ago with a cell phone bill. I got a letter from the company saying that the problem was their fault and I had paid the bill, and sent that to the credit agencies. 2 of the 3 removed it from my reports, but it was still on one. We were buying a house at the time, and I didn't have time to fight it further before the sale went through. The mortgage agent said that the difference in the credit score wouldn't have affected the rate we got anyway because my score was still good even with the error. Granted this was 8 years ago and a lot has changed since then, but it might be worth a couple phone calls to see if the difference in your score will really matter.

FemShep

mexicolombiana:

I just wanted to chime and say that the credit reporting process is STUPID AND BROKEN.  

I see this sort of thing ALL the time.  I would just write another solid dispute letter CCing the collection agency, the hospital, and Experian threatening a lawsuit under the Fair Credit Reporting Act.  

This is good advice.  Include the copy of the debit from the bank statement with the letter (black out all your confidential info, like your full account number), and send the letter certified mail.  Then fax a copy of the letter to the Equifax CEO's office; google should be able to give you the proper number.

In general, most CEOs of major public service companies have special customer support teams they use when they receive a direct complaint or when their friends/celebs/VIPs have issues.  Contacting the CEO can be especially effective for problems with cable companies.    These customer support teams are usually extremely responsive, and can cut through lots of red tape.

Also, if you're buying a home with a conventional mortgage, because of the new Fannie Mae/Freddie Mac regulations, you cannot close with any active disputes on your credit report.  I had an active dispute with Comcast on mine (see above!, they messed up with tracking our equipment and tried to bill us for it even though we had returned it and provided our receipt), and had to have the dispute removed before we could close; it put our house closing in jeopardy, and was extremely stressful.  So it's great that you're getting this taken care of now!  Good luck! 

AZ123

well, considering I'm at a debt collectors conference right now I have some ideas of what you should do....

It sounds like equifax won't remove it because it was properly reported by the collection agency. The collection agency or the main creditor (the hospital) incorrectly reported you to the credit bureau.

Google CFPB. It is a fairly new regulatory agency, works in partnership with the FTC, that has recently set up an online portal to submit claims to assist consumers in these types of matters. Sort of like what the BBB used to do but with way more power (collection agencies and credits are scared of the CFPB - not the BBB). You want to name the collection agency AND the original creditor (the hospital) in your complaint. The CFPB will then investigate the matter for you. The CFPB has jurisdiction over this. The CFPB will also check to make sure the credit agency is appropriately licensed in your state. You can check this as well. If they aren't, then I suggest you write a letter to your state attorney general's office. Anything from the AG will scare the collection agency and the original creditor. In addition to all this, you can do what the above poster suggested with the FTC. Not sure how quickly the FTC will move. The CFPB might go faster

Good luck!

SummerOH

I agree with the above comments, particularly the one about the Consumer Financial Protection Bureau. 

Also, I'm not sure if it's like this for every bank, but when we refinanced a year ago our bank (Chase) said they pull all 3 credit reports and take the middle score.  So one report being low may not even matter.  I think they realize that there will be variances that are out of your control.  I was in a similar situation with erroneous medical bills on one and they didn't even bat an eye since my other two were excellent.

snicksnack

I had a similar issue accept I paid the bill as soon as it came and a year later it showed on my credit report and I never received anything from the debt collection agency. I called the doc office who confirmed I paid and that they sent it to collections even though it was paid and was not late. Office sent me a letter stating it was paid I sent that to the debt collection company who removed it from my report after they confirmed the letter was real etc... Whole process took 30 days. Good luck I feel for you. 

2chatter

We found that equifax will not remove anything without a letter of release from the creditor.  We almost didn't close on our home as a result, it was absolute last minute madness.  The investigation and/or dispute will automatically come off after 30 days.  But the line item will still appear, as the debt was "late" and then "paid".  Unless the collection agency will agree that it does not belong on your report, you will have to try a heavier hitter, like a lawyer or invoking the protections of FCRA, etc.  Good luck, these red tape items make me seriously insane.