Expert: Regan Shinski - 2/16/2011

Question
Equifax has been incorrectly reporting negative information on me since 2005.  Despite numerous attempts to resolve this situation, they have willfully refused to correct the negative narrative and continued to report it incorrectly. In September 2005, Sun Trust Bank erroneously reported me as a paid in full-charge off, instead of reporting it as paid in full. After months of disputing this statement, Sun Trust Bank recognized their error, provided to me, in writing, their admission of error, and instructed, in writing, all three credit bureaus to remove the charge off status from my account. Equifax did not comply and did not remove the charge off narrative, whereas Transunion and Experian immediately removed it.
Equifax has ruined my credit, lowered my credit score, caused me to pay higher interest rates, and have been named as the credit bureau contacted causing me to be denied credit, on several occasions. I recently got Sun Trust Bank involved again, and just today Equifax has corrected my status to paid in full and removed the charge off narrative. I'm wondering why, when provided with the same letter of documentation from March 2006 instructing them to correct my status, did it take them until February 2011 to finally change it?
I have all the original correspondence from Sun Trust Bank, numerous credit reports from 2005 through 2011 showing Equifax's incorrect reporting, and every letter of credit denial, due to this error.
I believe that I have been a victim of their negligence. I have endured personal embarrassment as well as paying out thousands of dollars in higher interest rates over the last five plus years. I have been subjected to paying higher interest rates on my home mortgage, several car loans, homeowners/car insurance and credit card interest rates.
I would appreciate your thoughts on this matter.  Thank you.

Answer
Hi Kelli:

I am only going by the information you provided, so don't be offended.  If I am missing information, please repost the question and I will address it.  Also, please note that I have successfully sued and/or settled with creditors several times over violationd of the FDCPA and FCRA, so I do know a little about this.

Based only what you are saying, I don't think you have a case.  The problem is narrative does not effect your score.  There is no difference in the credit score between "paid in full charge off" and a "paid in full" derogatory.  Therefore, that is likely not the reason you were declined and therefore no liability from Equifax.  A charge off is simply an accounting term used by the creditors.  It has no bearing on one's credit score.  What matters is the status, dates, history ,and balance.

There are only two possible cases where their error could have directly affected you.  First, if the reported the comments of "paid in full - charge off" but still listed a dollar amount in the balance owed column.  Again, if there was a zero balance reporting, the comments really don't matter.

Secondly, and this would be VERY rare, would be if a creditor declined you because they SPECIFICALLY said they will not issue you credit because you have a charge-off.  I have never seen this, but I guess it is possible.

Finally, to compound your problems, even if you meet one of the two criteria above, you still cannot avoid the fact that the acount was derogatory.  This alone may have contributed to a lower score - charge off really has nothing to do with it.

The only other option, in re-reading your question, is if this account was NEVER late and they put it as a derogatory.  I do not interpret your question as being that way, but if it is please repost your question.  That may give you options as well.  However, those typically report as "paid as agreed" or "paid, never late"  The "paid in full" often indicates a paid account that was derogatory at some point.  Again, no difference in score and these are manual keying or entries, so it is possible "paid in full" means the account was never delinquent.  I hope this makes sense what I am trying to write.

Anyway, if I have misinturpreted your question and this is an account that should be 100% positive and was not, please let me know.  In the meantime, I hope this information still helps you and I wish I had better options or news for you.

Thanks,
Regan

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