Can a mortgage company file a dispute with the credit bureaus for a consumer? Is this scam?

[vipponah]

Ok so about 3 months ago, I applied for a mortgage and the mortgage broker told me I needed to pay off my collection account. I did and they said the would file a dispute with the credit bureaus for me. Well, I found a house and I called the mortgage guy and he told me that his "creditor" hasn't filed the dispute yet. Um, I am pissed and tried to call Equifax and I couldnt speak w/a rep b/c I didn't have a confirmation number.

Does this sound right? Am I being scammed? I didn't think there was anything to dispute b/c I owed it and paid it off. HELP!

[tanishia]

Disputes don't work.
Hopefully you paid the creditor this amount. Not that mortgage company.
You didn't pay money upfront for this "little scam" did you?

It is beneficial to pay collection agencies before applying for a mortgage.
A lender will see the amount as $0 and act accordingly.
It can take reports 45 to 60 days to update payment information.
Again, disputing will not bring any benefit. None whatsoever.

[weiford]

Either you misunderstood or the broker lied to you. Find another broker.

Paying off derogatory items does not get them removed. Disputing legitimate items won't get them removed either -- and mortgage companies do NOT file disputes for consumers. Did you pay some kind of fee to this broker or his company? I think you may have been scammed.

Mortgage lenders will require you to resolve all derogatory items on your credit report -- as in pay or settle. But they don't file disputes or tell you do file disputes for legit items.

[patwin87]

Yes, it is a scam. in theory, they CAN file a dispute on your behalf about an ACTUAL error on your report. What they will ACTUALLY do is file a dispute over ACCURATE information and hope the creditor fails to respond. If that happens, the account will TEMPORARILY disappear, and they can submit the FRAUDULENT report to an actual lender to get approval. YOU will then be guilty of FRAUD against the lender.