Ask a Lawyer - Archive

I authorized a company to do an automatic draft from my bank account. Even though the money is sitting in the account waiting, the company has yet to withdraw it and has reported it as unpaid to the credit bureaus. What options do I have to correct this?

This will be a two-step process. First, contact the company and straighten things out. I assure you that if they had access to your money, they'd be taking it. Perhaps they transposed some account numbers, perhaps they didn't set up the automated draft correctly, perhaps someone there just dropped the ball, etc. I think it's surprising that they haven't contacted you to collect. If you owe the money and have the money, it's simple. Just contact them and work out and payment and correcting it. Then follow up in writing to confirm. I would suggest that you just send to them a check for the amount due but wouldn't want them to then draft it and send your account into a tizzy.

Second, dispute the credit report. You can learn more about your rights and obligations by visiting www.ftc.gov. In essence, you'll need to send a letter of dispute and then the credit reporting agencies will need to cease reporting absent a resolution.

Best of luck!