CREDIT REPAIR SECRETS

McCarthy Law: The Top Errors That We Sue Banks and Credit Reporting Agencies for Failing to Correct After Dispute

 1.  The Consumer paid the account balance in Full, but the credit report still shows the consumer owes the creditor:  The account was paid in full and should be reporting a zero balance.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report
    • Settlement Letter or Cancelled Settlement Payments/Checks

2.  The consumer paid less than the full account balance in a negotiated settlement, but the credit report still shows the consumer owes the creditor:  The account was settled and paid at a reduced amount.  The creditor has not applied the settlement payment and is still reporting the full balance.  The account should be reporting a zero balance.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report
    • Settlement Letter or Cancelled Settlement Payments/Checks

3.  The creditor issued a 1099C to the consumer but it still showing the money as due from the consumer:  A 1099C was issued for the full balance on the account.  The creditor is still reporting the full balance, but the balance should be reporting as $0.  (Chase is one creditor that issues a significant number of 1099C to consumers).

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report
    • 1099

4.  The account was sold to a debt buyer or different creditor but is showing as still owed to the original creditor:   The original creditor is still reporting the balance owed.   The account should be listed as transferred to another lender and the original creditor should report a zero balance.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report

5.  The consumer is listed as owing the same money to the same creditor twice: The account is reporting twice on a credit report.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report

6.  Unknown account on credit report: Consumer has no knowledge of the account.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report

7.  Debt buyer bought the debt from another creditor and re-aged the last paid date on the credit report:  Many debt buyers state the last paid date as the date they purchased the account, which is not accurate.  The last date paid often happened long before the account was transferred.  Refer to the original creditor last paid date to find this error.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report

8.  Short sale listed as a foreclosure instead of a short sale: Short sale is listed as a foreclosure. Should be reporting as “settled and/or sale for less than the full balance.”

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report
    • Short sale documentation

9.  Date of foreclosure incorrectly shows as much later than allowed: Foreclosure dates should be listed as Foreclosure within 30 days of the actual foreclosure date.  If later, it is an error.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report
    • Default Mortgage Notice
    • Notice of Trustee Sale
    • Trustee Deed Upon Sale

10.          Consumer filed Chapter 7 and debt included in bankruptcy is still showing due:  All debts included in the bankruptcy schedules should show a zero balance post-bankruptcy unless they were reaffirmed.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report
    • Bankruptcy Petition and Schedules and any Reaffirmation documents and Orders
    • BK Discharge

11.          Debt belonging to a consumer’s relative shows as debt in consumer’s report:  Sr, Jr, III. Surnames mixed up.  Credit card belonging to John Doe Sr. is incorrectly reporting on John Doe Jr.’s credit report.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report

12.          Account is too old to be reporting as delinquent:  Generally, a delinquency occurring more than 7 years prior to the date of the report for negative account(s) and 10 years prior to the date of the report for positive account(s) and must be removed.

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report

13.          Identity Theft: Someone uses another's personally identifying information, like their name, identifying number, or credit card number, without their permission.

 

  • Supporting Documentation needed for Lawsuit: 
    • Dispute Letter Sent
    • Response to Dispute Letter
    • Credit Report
    • Official Police Report

Information from McCarthy Law PLC, updated 3/31/2017

Items that are not typically violations of FCRA and not eligible for litigation:

  • FDCPA violations – harassing phone calls
  • Incorrect Personal Information (name, address, etc.).
  • Any reporting involving public records where the report simply reflects what is listed on public records even though public records may be incorrect. (This includes Judgments and Liens)
  • Any reporting involving Government:  Federal, State, City municipality or agency.
  • Any reporting involving the IRS and Taxes.
  • Any creditor reporting a balance where the debt was not paid off.
  • An account that is valid, but the consumer just does not want to pay it.
  • Any Child Support Issues
  • Any Issues of Identity Theft without a police report
  • Credit Report Inquiries