Credit dispute question
On May 9th I found an account on my credit report that had been reported the day before. It was from Midwest Recovery, a name I did not recognize. This is a collection account originally with American Web Loans, another name I didn't recognize. The original amount was for $400 but they had me in collection for $1200. I contacted the company and they said they had been in contact with me via mail. I stated that I'd never received a letter and that I wanted them to send me verified proof of the original debt to my address.
On May 18 I still had no received the proof and decided to file a dispute with Transunion. As of today the site says it is still in dispute, though a phone call states that they ruled with the creditor. I asked what information they received from the creditor and the young woman on the phone said they only needed to have the creditor say that it was a valid account, without any proof. They also stated that the creditor claimed to have sent me an email and a certified letter. I've received neither.
Nothing here sounds right. I fight to keep my credit decent yet someone can make a claim without proof? That doesn't seem fair.
What is my next step? An attorney? I've since discovered two more accounts added that I never knew about, one by the same company and another by Portfolio Recovery. They now show in multiple credit reports. I contacted Portfolio and they informed me there are new laws that state they only need prove my debt in a court of law.
This is dropping my credit when I need it for college loans for my kid. Any advice?
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