Open Account/Derogatory Mark Error, How to Close?

[Ashley_N]

I have a derogatory mark on my credit score due to being taken to collections years ago, this also opened up a new credit line account.

However, this account and derogatory mark was made in error because what I was taken to collections for was already paid off, and no payments were needed or made to the new open account.

This derogatory mark and open account has and is still negatively affecting my credit score.  Does anyone know the best approach to closing out this empty account?

Thanks!

[tagteam · Accepted solution]

Collections accounts can remain on your credit report (and affect your credit score) for up to seven years.

If you believe an error has been made, you can contact the collection agency directly or file a dispute.

See https://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports

[Opus 17]

If it is correct, it will remain in your history for 7 years, it should not show as open though.

If lender A accepted a settlement for a reduced amount, but also referred you to collector B in error, and you now have a negative mark from both A and B, then you should contact lender A and all three credit bureaus to appeal.  While the appeal is pending, you have the right to place a 300 word statement of explanation in your file, although the statement won't affect your score.  Don't forget to follow up with all 3 credit reports, Turbo® only shows you one.  You can get all 3 reports at www.annualcreditreport.com.