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Reader Mailbag: Disputing Inquiry, Debt Validation Not Repsonded To, Old Account Showing on Reports

The Disputing Inquiry Blues

I got a couple of good ones this week in the Reader Mailbag! Disputing inquiry, is it worth it? Keep em coming! Drop me an email or comment on any of the posts

I see two inquires on my credit report that don’t appear to be mine. How can I dispute them with the credit reporting agencies? Have you had success in by disputing inquiry?

If you didn’t authorize the inquires, then this is a case of possible identity theft and would want to contact the police. However, if you are using the ‘don’t appear to be mine’ as a way of saying ‘they are mine but I don’t want to admit it’ there are ways you can handle these inquiries. If you wish to dispute inquiry directly with the person who submitted the inquiry, they can simply dismiss it without any need to respond on the merits.

Issues relating to credit inquiries are specifically exempt from the direct dispute process.  16 CFR 660.4(b)(iii).  Disputing inquiry is only provided by way of a dispute with the credit reporting agency. Disputing inquiry through the credit reporting agency is difficult, primarily because of the way the inquiry process works.

When a party makes a request for a consumer’s credit report, they must provide a certification under FCRA 604(f) and 607(a), providing  one or more of the permissible purposes set forth in section 604. The credit reporting agency accepts the truthfulness of such self-certifications, so has their behind covered in providing them your credit report.  To challenge the permissible purpose, you must find out what was provided to the credit reporting agency , and then challenge its accuracy.  If the credit reporting agency simply relies on the submitted certification, they can verify under their own reinvestigation authority.

A real catch-22. In my opinion it is not worth it, for the little amount of damage an inquiry actually applies to your credit report, to go through disputing inquiry. Another way to tackle them would be with a good will letter. I tried this and it did work for a few of them, but it also placed a fraud alert on my credit which was a real pain to remove.

On November. 1st, I received a letter from Ability Recovery Services for Ashworth (an online high school diploma program). I sent a debt validation letter on the 20th which requested validation of the debt with a request for a copy of my signed contract, and proof of their license/bonding in TX. I get a little green card from the post office showing that it was signed for and delivered/received on 11-23-2011.  Well, they send a letter on the 7th of December informing that because of failure to respond to their previous letter I have 10 days exactly to pay the amount owed of $1,491.87.  On February 6th I receive a debt settlement offer and today, the 17th I get a letter of verification which is a cover letter to “Dear Account Holder,….” followed with a sheet of printed paper with my grades for the classes and another piece of paper with an invoice. Is this a violation of my rights? They did not respond with debt validation, nor did they cease collections!

This is an abolute violation of FDCPA 809(b).

Upon receipt of your DV request, they were automatically barred from collection on the debt until such time as they provided the requested debt validation. Their response on the 17th, if accepted as adequate verification, removes their cease collection bar.

You can pursue a violation of FDCPA 809(b) if so inclined, but the remaining issue is how you wish to treat their debt validation response.

If you consider it to be inadequate verification, you would hold them in further violation of section 809(b) if the conduct any further collection activities. Pursuing FDCPA violations is a bit of a toothless process, as the FTC, who is charged with administrative enforcement of the FDCPA, does not take action on individual consumer complaints.  You could complain to your local BBB or state AG, or you can bring legal action on your own. Most consumers do none of the above, which is reason why many debt collectors are cavalier about FDCPA compliance.

I have a collection account showing on my credit report that was paid over 8 years ago. This account has long expired from being able to report. Should I just dispute it online through their website or directly dispute it with the collection agency?

If the credit report exclusion period has expired (i.e., more than 7 years plus 180 days has expired since the date of first delinquency on the original account), the proper procedure to get it excluded from your credit report is NOT the dispute process.

There is no inaccuracy in any credit reporting.  Either a creditor or a debt collector can continue to report any accurate information at any time, even after expiration of the credit report exclusion period.  The exclusion requirement is placed on the credit reporting agency to discontinue inclusion of the information from any credit report they issue.  Thus, the issue is one of compliance of the credit reporting agency with the exclusion provision of FCRA 605(a)(4), not the accuracy of information in your credit report.  The furnisher of the information is not involved in that process other than to initially provide the credit reporting agency with the proper date of the adverse item.

You dont want to get tied up in an inappropriate dispute process.  There is simply no inaccuracy in credit reporting to investigate, and you dont want a dispute flag placed in your credit file.

Simply send the credit reporting agency a letter of complaint of their violation of FCRA 605(a)(4) and 605(c).

disputing inquiry is a great way disputing inquiry to have an inquiry removed. make sure to use caution disputing inquiry while disputing inquiry

 

 

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