The reason: A debt collection agency reported that we failed to pay a bill to our childrens pediatrician.
I started receiving calls from this agency in late 2019.
They called from various numbers and never left any messages.
I had to Google the numbers to figure out where these strange calls were coming from.
Since, to my knowledge, I didnt have any outstanding debts, I didnt reach out.
As it turns out, the $90 bill was billed on my sons account.
However, when the pediatrician received my payment, it was mistakenly applied to my daughters account.
Over the phone, the accounting department corrected the error and confirmed that I owed them nothing.
They said they would notify the collection agency, but I dont know if that ever happened.
Fast forward to October 2020, and I found out the debt collection agency has tanked my credit score.
Ive worked hard over the last 20 years to build good credit.
What can I do to fix my credit?
Unfortunately, this is a common problem.
About 1 in 5 credit reports are estimated to contain errors.
Many people dont find out that their reports are among them until theyre seeking a financing decision.
The good news is, this should be easily fixed.
The pediatricians office admits this was a mistake.
Your first step is to get a free copy of your credit reports from all three bureaus at annualcreditreport.com.
Then, call the doctors office again to follow up.
If theyve notified the bureaus or the collection agency, ask them to forward you the correspondence.
Also request that they copy you on any communications they have moving forward.
If they havent done anything?
venture to stay calm.
Mistakes happen, and the person on the phone may not be the person responsible.
But be sure to emphasize that this mistake is interfering with your refinancing.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Then file a dispute directly with the credit bureaus.
you could find templates at FTC.gov.
If you could get a statement, be sure to attach it as evidence.
you could submit your dispute through AnnualCreditReport.com.
But Id consider doing it via registered mail instead.
That way you’re free to confirm that your dispute has been received.
Include a copy of your credit report with the disputed information highlighted.
Typically, credit bureaus have 30 to 45 days to investigate disputes.
Since theres no question about whether you owe this money, they may be able to resolve it faster.
If they dont respond within 45 days, you should file a complaint with the Consumer Financial Protection Bureau.
Only a lender can request a rapid rescoring on your behalf, and not all lenders offer the option.
Did you know?
But it will be worth the effort once youve restored your credit score to that pristine 800-plus status.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
