Reporting account settled but with forgiven balance still reported as due

I have an account like that with Citi. It was my last settlement. I have a letter saying that it's settled in full, but they still show a balance on my report (the full amount less the settlement payment)... and they are now showing the balance as 60 Days past due instead of 180+ or whatever it was originally. I disputed the reporting with the credit reporting agencies, and I'm waiting to hear how they respond after they investigate.

What Ball Mich is doing is the way to handle it! There is little else you can do EXCEPT, under the new Federal Guidelines you can challenge it directly with the original creditor and they will have to remove the info or substantiate it! That may be an easier route.

Here is the thread I posted a while back regarding the new law!
http://www.debtconsolidationcare.com/forums/showthread.php?t=73775

Yes, you should dispute the account with the credit bureaus. Attach your settlement document as proof. It may take time but the account will be removed from your report.

As I said above! You can now go directly to the original creditor and have them remove it! Please read the link in my previous post!

Thanks Mich.

Please post to this thread with any updates.

My interest in this is from a public policy perspective.

There appears to be a recent trend for settled accounts to appear as settled with the reporting agencies, but with the forgiven portion of the debt still appearing as owed.

There are 2 originators that I know are abusing this.

Anyone with any reference to a situation like this can help.

If the debt is settled, the creditor should not be reporting the Forgiven Debt as a balance owed when the creditor agreed to settle on the debt.

You have the right to dispute the inaccuracies off of your credit report based upon The Fair Credit Billing Act. From the date of the dispute, creditors have 30-60 days to go back to the credit bureau showing the validity of the debt & why you are responsible for it. If they can't, under federal law, the disputed item has to get lifted off of your credit report.

Please provide the credit bureaus with written documentation confirming the accounts have been settled and that the creditor is trying to go after you for the forgiven debt.

I hope I was able to answer your questions. If in need of a free financial analysis, please do not hesitate to contact me.