Three years ago a credit card company sued me in magistrate court for $3000. I invoked the arbitration clause.
The creditors' attorney offered me a Settlement Agreement and Mutual Release in which I agreed to drop the arbitration case and the creditor agreed to the magistrate case being dismissed with prejudice.
Now, three years later, I applied to refinance my mortgage and it turns out the credit card account is still on my reports still showing the account as an unpaid negative entry and a $3000 balance. I disputed it with the CRAs. I also called the creditor's collection department who said they had NO RECORD of a settlement agreement and asked me if I was going to pay the balance due!!! I told them NO, that is the whole point of a SETTLEMENT AGREEMENT and the language of the agreement says I am released, acquitted, and forever discharged from all claims and liabilities!
So then I faxed the signed agreement directly to them and told them they need to correct my credit reports.
Two of the CRAs are now telling me the reports have been updated but all the creditor did was show the account as "charged off" since 2015, but they still show BALANCE as $3000 and PAST DUE as $3000.
Based on the language of the settlement and release agreement below, shouldn't they at least change the balance and past due amount to ZERO instead of $3000? What can I do now to improve this situation? If there is nothing I can do now, what should I have done differently regarding the settlement agreement when I signed it that would have improved my credit report at the time?
The language of the agreement states the creditor will:
"hereby release, acquit and forever discharge Defendent and all of his agents, asigns, successors, servants, and representatives (including attorneys), together with any and all other persons who are or might be liable (collectively, the "Defendent Released Parties"), from any and all claims, liabilities, demands, suits and causes of action of every nature and kind, whether vested or contigent, accrued or unaccrued, known or unknowns, in low or in equity, matured or unmatured, whether or not such claims were or could have been brought or raised in the Action."