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Help needed, Asset Acceptance and credit reports


lmzajac
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This is a nightmare! I was looking at my husbands credit reports and there was a collection account on all 3 reports from Asset Acceptance. I disputed it because neither of us knew anything about it (I also sent letters to Asset asking for validation as well). The reason for the dispute was "no knowledge of account". Asset Acceptance then put under the personal statement section of all 3 of his credit reports "Fradulent account activity. Do not extend credit for 90 days beginning June something or other" Can they do this? Are they allowed to add something to someones personal statement? We found out when we tried to buy a new car and werent approved for credit because of that statement. How do I get it off? Any help would be greatly appreciated. Thanks so much

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A 90-day Fraud Alert is becoming the typical DF (Data Furnisher) response to 'not mine' type of disputes. Their interpretation of your 'no info' claim is a stretch, but is commonplace since they don't actually investigate anything.

"...weren't approved...because of that..."

A Fraud Alert wouldn't disqualify you from an auto loan. It may have hampered the dealership, or their lenders, from pulling your CR, but it would'n't be THE reason for an actual denial. Borrowers are primarily qualified by score, then by other factors. Was the dealership actually able to pull a CR on you? Did they tell you the score?

More likely, your dispute caused an update of the collection account by Asset (they probably 'verified' the TL) and THAT caused a drop in scores. Typically, you would have been provided forms about credit denial listing the CRA's pulled and their addresses. It's a pass the buck move. Did you receive any such paperwork? Were you quoted an actual reason for the loan denial? If not, you should be getting numerous letters in the mail soon, depending on how much the Finance guy shopped around for you. Keep at least one of those with your CR paperwork. It may be become important later on...

"...How do I..."

The FA will expire in 90 days. There is no need to take action on it.

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However, based on my experience, if you continue to dispute other TLs during the 90 days, the CRAs will turn that 90 day fraud alert into an "extended" (seven year) alert. IN which case you will need to request that it be removed in writing, and send two forms of ID along with your request (I send a copy of my DL and a W-2 with all the dollar amounts redacted - only my name, address, and SSN remain). Keep a close eye on it.

Also, they tend to remove you from prescreened offers of credit/promotions. When your credit begins to improve, if you want credit, you will WANT those prescreened offers. You have to request to "opt in."

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i forgot to mention that his credit score is 780 with 2 bureaus and 791 with another. this is the only negative thing reported on his reports, besides a credit card that shows up as 20 days late in january. the finance person at the dealer actually told us that the companys they use will not finance us because of that alert. its ridiculous.

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  • 2 weeks later...

A few days after the ordeal with the car dealer,Asset Acceptance started calling our house like mad (6-8 times in 2 hours) so sent a letter requesting all contact be done in writing. The day I got the return receipt for the letter the phone calls started again, so I reported them to the Indiana AG. We recieved a letter a few days ago from the AG with Asset Acceptances response. They are stopping all collection activity and completely erasing the negative from the report. Score one for the little guy!!!

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