Duplicate Entries from Collection Agencies - Can I Dispute It?

Reader Question:

In looking at my credit report, I see a lot of cases where an original debt was charged off and sold to a collection agency (perhaps then sold to another agency,) and so is reported multiple times... I read Brandon's blog article from 11/08 about duplicate entries, and I understand that this is "the same account with two different statuses"... can you please tell me whether I should dispute this? Which entry really should stay on there, the original one (since it's the oldest and would be the soonest to "fall off")? Also, if I have paid the debt and wish to get a "goodwill removal," should I write to the original creditor or the latest collection agency to ask for it to be removed (if I paid the collection agency)?

Brandon's Response:

Inaccurate information is the only thing you can successfully dispute. Actually, you can dispute just about anything, but you'll only get results when dispute errors. For example, if a creditor really did charge off a debt and sell it to a collector, then there's not much you can do about that entry. If it's truthful and accurate, it can stay on your report for up to seven years. It's hard for me to say what's accurate or inaccurate, because I don't know anything about the accounts.

If you have paid the debt off, your credit report should reflect this. If it still shows the debt as being open / unpaid, then somebody needs to update the reporting -- typically this would be the last person who reported the status for that item. If the information is incorrect, you can dispute it with the reporting agency that produced that particular report (TransUnion, Equifax or Experian). They are required to investigate the item. And if they find that your claim is correct they must remove the erroneous item.

Here's a Consumer Reports article that might be eye-opening.

And here's an FTC guide to credit report repair:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm

Hope that helps.

-Brandon