Expert: Michael Brotherton - 1/28/2008

Question
I had a auto loan for approx. $15'500.00 that was paid off in 2005, and the lien released from the title. I just discovered on my credit report 2 errors regarding this loan. The first, is the account the loan was under is showing as derogatory credit, paid, but not closed. It should show as closed, and why it's under derogatory credit is beyond me. The second, same finance company, same amount loaned, but different account number that I have never seen before till today, shows the same credit limit ($15'500.00) but nothing ever being paid, late, or anything else (nothing but 0's). This account however is showing as paid/closed/chargeoff. What has happened here? There is an error obviously, but it almost looks to me like someone at the finance company created another account for the same amount, in my name, then charged it off. Did someone pocket this money? Like I said, there's nothing but 0's in all other spots like, amount paid, amount owed, high limit. It makes no sense to me.

Answer
It is hard to say what may have happened but errors occur all the time. Write a letter to the credit bureaus that are reporting inaccurate information and dispute the item as inaccurate. They have 30 days to contact the company to verify the information and report their findings. You have a good chance of getting the information corrected this way. If it comes back still inaccurate contact the finance company and get contact info for someone in authority. Then send a certified letter advising them of the inaccuracy and the damage it is causing you. Inform them that if they do not correct this information you will be filing a complaint with the Federal Trade Commission and the Dept of Commerce in your state.  This should do the trick. If not, file the complaint. You can find complaint procedure on line.

Good luck