fixing a credit report due to renters

[flynavydiesel]

Here's the deal, we rented out our house while I was stationed in WA. The renters were responsible for paying the water and sewer but apparantly had a problem at one point and ended up not paying the sewer bill for a few months. The sewer authority slapped a lein on our house, at this point we were notified of the delinquent bill. We got the renters to pay the bill immediately and lein was lifted. Heres the kicker.

I just found out that our credit score took a hit because of the lein being placed on the house. Is there anyway to fix this? I mean a lein was placed on the house but this was due to our renters and not us, they should take the credit hit.

Any suggestions?
Thanks
Sean

 

[GROUCHO MARX]

I could be wrong but this may not be a big deal as the issue was resolved.

 

[flynavydiesel]

I thought the same but my credit score dropped from 780 to 680, they said it was due to the lein against the house.

 

[Bob Woods]

The renters were responsible for paying the water and sewer.

Whos name was the service under? Yours or Theirs?
I'm just nosy, as until a few months ago I was a landlord but sold all my rentals this year. But always made sure the tenants had the utilities in their names. I wouldn't even co-sign for a tenant because of what can happen when people don't pay.

 

[rshaw125]

You have the right to put a written statement on your credit report explaining the situation.

 

[flynavydiesel]

Bob, Unfortunately here in Bucks county the water had to stay in my mine but was sent as in care of. I had it written into the lease that they were responsible.

 

[flynavydiesel]

rshaw, I would like to do that but I would really like to have it removed from my report period.

 

[Brons2]

There is a formal dispute process with the credit bureaus.

 

[andrews]

Contact one of the three credit bureaus and file a dispute. Usually you will get an e-mail response within thirty days.

 

[427Z06]

quote:

---

Originally posted by andrews:
Contact one of the three credit bureaus and file a dispute. Usually you will get an e-mail response within thirty days.

---

Checked my credit report about 2 years ago and I found something negative. But after going back through more than 15 years of records, I still couldn't figure out what it was from or who it was from. I even made numerous long distance phone calls trying to locate the company or entity that created the negative entry. No luck. If they're out there, they sure made it impossible for me to find them.

So, I filed a dispute with the credit bureau and received an email response from them saying they verified that it was a correct entry.

Figuring the credit bureau could at least tell me who to contact I called and asked what documents they obtained to verify that it was correct, they told me they didn't have any, they verified it by email.

So I then told them that I tried to locate the source of the entry from the information provided on the report but I had no luck, and then asked them if they could tell me who to contact.

Long story short, the credit bureau verified the entry by email and stated that's all they had to do, but wouldn't, and weren't required to help me contact the entity that made the entry other than what was listed on the credit report.

Having since moved and started a new job, I didn't have time to futz with it so I let it be. Well, I got a bunch of free time again, so I'm determined to get to the bottom of it once and for all.

So, if any you legal eagle types out there drop by this thread to lend some advice to flynavydiesel, maybe you can shed some light on my experience too.

Thanks in Advance

P.S. Tonight there was a PBS Frontline program on credit cards and credit agencies. Confirmed much of my suspicions of these institutions from what I've observed this past decade. Program mentioned they have a website with much of the information they presented at pbs.org

[ November 24, 2004, 12:24 AM: Message edited by: 427Z06 ]

 

[thays]

While this is definitely not your fault, I'm not sure the credit bureaus will see it as their fault either (they are only obligated to fix errors). Before I go further, let me say I'm not a legal expert in such matters, this is simply based on my understanding of credit reporting and I also believe state and local laws may be a factor as well. The problem it would seem is that the house is in your name along with the utilities, making you responsible for both. So if a lien was placed on the house (which you are the responsible party), then the credit bureau would be accurate in reporting the lien and the subsequent reduction in credit score.

What does seem clear is that the tennant was in violation of their rental agreement, what avenues this opens up may be worth exploring. What else is clear is that the local county and utility share some of the blame. For example, I don't see how an apartment complex could operate in an environment where they are required to be responsible for the utilities, so are their rules different or is the local utility/counties rules just not rental property friendly? I mean the only "safe" thing to do to avoid future liens would be to pay the utilities yourself and bill the tennant or roll it into the rent. This is a hassle and most commercial apartment complexes are moving away from this model. A complaint at the next town meeting, to the utility, and state utility regulatory board may be in order. As already suggested, a letter of dispute to each credit bureau would be the place to start, maybe they will remove it. If they don't, then have them attach a written explanation.

Finally, the good news about credit scores is that they are largely irrelevant unless you need to borrow money (although some prospective employers look at this now as part of the application process). Things like first mortgages seem to suffer less with a lower credit score (and a 680 isn't that low) than do riskier loans like automobiles. Also, if you don't have any additional bad credit reported then your score will probably start recovering within a year or so. You can google for this stuff (including templates for dispute letters to credit bureaus), there is a lot of info out there. MSN has some financial boards, as does the Motley Fool. There's also a site called Bankrate that talks about credit scoring and you can email in questions. A real estate attorney or certified financial planner will have some info, although they won't be free.

 

[flynavydiesel]

Thanks guys, I am going to get this figured out and if I do I will post my results.

"Long story short, the credit bureau verified the entry by email and stated that's all they had to do, but wouldn't, and weren't required to help me contact the entity that made the entry other than what was listed on the credit report."

That just blows!!!! I mean how easy would it be to just email the credit bureau and say my next door neighbor did not pay a fictious bill or somehting? I saw that same Frontline last night and all I can say is wow, consumer beware

 

[carrera79]

Watch your credit report like a hawk. As a mortgage professional I see incorrect items on credit all of the time. flynavydiesel-do contact the bureaus, all three of them, with a letter of explanation and the a copy of the lease. Why couldn't you put these utilities in the name of the renters? Anyway, even if you don't get it removed a 680 score is not going to damage you too badly for now. It will come up rather quickly if the rest of your credit is clean enough to have a high 700 score. Furthermore, whenever anyone here looks at their credit don't just have one report pulled. Get all three, if you can get what's called a tri-merge. Most of the real funky stuff shows up on one or two of the bureaus but not all three leaving you with incomplete information if you look at only one.

 

[doitmyself]

I was told that every time you request a credit report, that lowers your score. If you do two or three in a short period of time, "they" start to worry that something is going wrong.

Is this true?