Why did my credit score *just now* go down? And should I just wait it out or report fraud?

Why did my credit score *just now* go down? And should I just wait it out or report fraud? Topic: Loan application letter to company
July 21, 2019 / By Ednah
Question: Basically some shady individual used my name and ordered something from BMG Music Services in 2004 and the company charged 'me' and then sold 'my' account to a collection agency...all without *me* ever knowing about it. I never ordered anything whatsoever from BMG and never received anything from BMG... *not even a bill*. So I have a few questions here for anyone kind enough to respond. 1. On my Experian Credit Report I have two negative actions related to this one incident. Is that justifiable? 2. Why am I *just now* learning about this? Why didn't this come up on my mortage application? Why did my credit score suddenly plummet from 700 to 600 (100 points!) *after* I was approved for a home loan? The other report I checked (Equifax) says that the 'Date of First Delinquency' was Oct 2004...which is well before we purchased the house. Although the 'Date Reported' and 'Date Assigned' are listed as the beginning of this year...(I.E. A few months after we were approved!) I'm afraid to call the collection agency because they may start the clock all over again. Or did they just start the seven years this year?? Why? Should I call and tell them this wasn't ME ordering these things? (5 years ago.) Or just wait it out? Thanks
Best Answer

Best Answers: Why did my credit score *just now* go down? And should I just wait it out or report fraud?

Charla Charla | 1 day ago
STAY OFF THE PHONE! IF they call you reply ONLY that they should send it out in writing and not to call you again. NOTHING MORE. Check your states statute of limitations for COLLECTION it may not even be collectible anyway. Check here http://www.carreonandassociates.com/arti... You are right about calling them, DON'T! IF you get a letter then just make a copy and write in red ink accross it "SOL" and send it back to them, again nothing more. ADDED BMG has absolutely nothing to do with this anymore and will tell you that immediately. The debt was sold and belongs to the collection agency NOT BMG!
👍 90 | 👎 1
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We found more questions related to the topic: Loan application letter to company

Charla Originally Answered: Can I be denied credit if I have a fraud alert on my credit report?
According to FICO a fraud alert tells a potential creditor that they should take special precautions to verify the identity of the applicant. This is all it does, it has no bearing on the loan decision. You should receive a letter from the lender stating the reason for the denial of the application. Hope this answers your question
Charla Originally Answered: Can I be denied credit if I have a fraud alert on my credit report?
you can't be denied based on the alert...it indicates that you need to be contacted in a different manner to verify identity before any new loan is initiated. i'd be more concerned with fico at this point, your very much in a gray range and bordering on the low side of what lenders want to see in a fico score. look for ways to begin to build better credit. i'm not sure if the digits on your income vs. debt are correct but if you carry more than 40% of your income in debt thats a concern to creditors as well

Arden Arden
Do not call the collection agency. Dispute every item on your credit report that isn't yours at every credit agency. You can usually do this online or in writing. The collection agency will then have to prove that the items are yours. You also need to contact BMG directly and push the issue with them. Fight. Fight. Fight. I assume the "plummet" is from the collection agency. However, you score can go down any time you open new debt and it may go down if the new debt substantially reduces your open versus used credit percentage.
👍 30 | 👎 -8

Zadok Zadok
Sorry, the late money will stay on your rfile for 2 years. (no longer seven). in case you seem at your credit rfile, they only post the final 2 years' properly worth of cost heritage whilst it particularly is tallied month by way of month. those that stay around for longer are the totals of what number cases you have been 30/60/ninety days late...so because it particularly is a stable element! in case you prefer, you may write a customer assertion. it particularly is going to likely be one hundred words or much less describing your difficulty. The bureaus will post that for the period of your rfile and whoever pulls it could see your side of the story. Like a prior poster mentioned, I doubt you will obtain plenty sympathy nonetheless. in simple terms charging up debt devoid of having the thank you to pay for it particularly is going to likely be chalked up as irresponsible - no longer as some thing that became a foul tragedy (like a loss of existence, a divorce, a firing, an twist of destiny, etc.)
👍 30 | 👎 -17

Zadok Originally Answered: If something on a credit report has been charged off, does it raise Credit score if they are paid off?
When something is "charged off", that means the company you owed money too has done what they can to collect from you, without success. So they have used thier insurance and/or resources to cover what was owed to them by you. So now the bad credit is on your record, but the companies books have been cleared of your unpaid bills. If you now have the money to pay this bill off, you should have been sent several demand letters from whomever the company you owed the money hired as a collection agency. This collection agency should have all of thier information on how to contact them and what was needed for you to pay this bill off. If you do not have this money, you can contact the billing center at the company you originally owed the money too and ask them what collection agency they use, or used in your case. Sometimes companies use different collection agencies for different parts of the country. Once you have the collection agencies information, contact them and tell them you are now able to pay off this charge. You will need your account number(s) and other information from the account(s) you had owed on. If they still have you in their system, then they can process your payment on this account. You will have to stipulate to them that you will require a signed and notarized letter from them, so you can clear your credit record of this charge. You will need to contact all three credit bureaus (if you are in the USA) and get the address of where to send the copy of this letter, so they can remove the negative ratiing from your credit record. But....since this was already charged off.......if the collection agency has already charged this off of thier records, you might not be able to get anything done about it.

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