Expert: Yan Ross - 5/23/2009

Question
I have a medical collection hospital bill on credit report that is 5 years old. I tried contacting the collection agency and it is out of business and the telephone number is disconnected. I paid the original creditor and she told me the bill is now with the MN dept of commerce and would take 2 years for her to get it back. Should I dispute with the credit bureaus now that it is paid? or wait until sept when it will reach the SOL and fall off the report. I am trying to buy a house and trying to quickly improve my fico score.

Answer
Karen,

On disputed accounts, you are entitled to have a 100-word written statement included in your credit file.

Although it's not clear to me what it means that "I paid the original creditor and she told me the bill is now with the MN dept of commerce and would take 2 years for her to get it back," I would suggest that you write each of the 3 credit reporting agencies to request that they include a statement of dispute in your credit file.

Any supporting documentation you can include would be helpful (such as a written confirmation from the original creditor that the bill has been paid).

While it may not improve your credit score immediately, the written statement should help a potential lender in making a positive decision on your home loan application.

Good luck!