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Home > Ask The Get Out of Debt Experts > Dell Finance Won’t Reopen My Account After I Mistakenly Reported it as Fraudulent. – Vincent

Dell Finance Won’t Reopen My Account After I Mistakenly Reported it as Fraudulent. – Vincent

“Dear Steve,

With cambridge credit counseling and findind extremely difficult to get credit. dell computer closed my account.

declared chapter 7 bankruptcy in 2004. by 2006 I had all sorts of credit and by 2008 I bought a new car for under 5% interest. before, during and after bankruptcy, I never had one late payment to any creditor or utility.

declared bankruptcy for medical reason-no insurance and had whopping hospital bill. in 2008, I opened up dell computer account and they gave me $2000 line of credit. I never used this account until now, March of 2011 to try to purchase new laptop. unfortunately, in November of 2010 I accessed my credit report online and saw an account that I did not recognize.

I opened up a dispute with equifax because the account was not labled as dell, but something that I totally did not recognize. Equifax then took it upon themselves to report this account to dell as a fraudulent account. It was not. Dell sent me a letter that they have closed my “fraudulent” account and when I called and spoke to many superviosrs they refued to re-open it .

when I spoke to their new accounts department, they refused me any typoe of account because of my credit???? my credit is in upper 680s and has never had a missed or late payment to any creditor. many accounts that I have (best buy, walmart etc.) have refused me credit increases. I found it much easier to get credit less than one year out of bankruptcy then I do now.

I joined cambridge in january, 2010 soley because of skyrocketing interest rates on HSBC and capital one cards. Cambridge insists that they have nothing to do with me being rejected for credit. I think otherwise. when is this nightmare of punishement from bankruptcy going to end? why is it that I was able to obtain credit after bankruptcy but not since I have enrolled into cambridge?

why did equifax report my account to dell as fraudulent and is there any legal thing that I can do about dell closing my account before they attempted to contact me to ask me whether or not the account was really mine? is there an y legal issue that I can take up with equifax reporting to dell tha tthe account was fraudulent when it was not? I am extemely upset. thank you for any advice you can give me. I have no problems paying my creditors on time- I just did not want to pay 29% interest rates for no good reason what so ever.

Vincent”

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The Answer

Dear Vincent,

What I suspect is that since you joined the credit counseling program, the included cards have been closed, which is the normal process. But since they were closed there is no ongoing credit to grade and score you on.

I can’t see any way Cambridge would have played a part in this. There is no mechanism for monitoring client credit reports and reaching out to creditors to close those accounts. No credit counseling group does that.

The most likely answer is that the inquiry of an unidentified account got coded as a potential fraud account and resulted in an automatic closure with the underlying financial company that handles Dell financing.

I’d suggest two courses of action.

  1. You may want to look at a small unsecured loan from LendingClub.com to purchase the laptop and use part of it to help reestablish your credit using the next suggestion.
  2. Follow this process to rebuild your credit and get a great credit rating again.

The LendingClub.com loan will also report to the credit bureaus to help bring your score back up.

At this point they’d probably want you to reapply to open a new account since the old account was closed.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

Dell Finance Wont Reopen My Account After I Mistakenly Reported it as Fraudulent.   Vincent
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Steve Rhode

    Thanks for being a loyal reader and more importantly, in submitting your question.

    I think this article will help you to understand one look at the reasons why credit counseling can impact credit. And it sounds like that article is right on track with what you’ve seen firsthand.

    The chaos will end as soon as you open new accounts and if you follow the foolproof guide to get good credit fast, it won’t take long.

    This isn’t a punishment process, it is a process thing. Credit scores are heavily weighed by current credit and history on open accounts. Your accounts were closed to get you the better rates. It’s more of a domino thing.

    You were a better risk right after the bankruptcy because creditors knew you could not file bankruptcy again for 8 years and it was prior to the economic meltdown.

    The good news is there is a way to get this all fixed by following .

    Steve

  • vincent

    steve thank you for taking th etime to answer my question-I am a daily reader of your Q&A and forums. I finally spoke to a dell account supervisor today and he assured me that he is diligently looking into this with his superiors and is pushing to get my account re-opened since he did see on the report from equifax to dell that dell was listed as DFS which just did not click in my brain when checking my crdeit report a few months back. Dell also acknowledges that they made no attempt to contact me and they do feel that they were wrong about that situation, at least that’s what I was told today. I never suggested that cambridge themselves closed the account, but I am extremely angry that my credit score was much higher ( around 690) in 2008 than it is today with cambridge handling my accounts. (around 640 today) what I maeant was that after bankruptcy which was quick and painless, I built my credit back to a respectable level by 2006 and by 2008 received a great interest rate from american honda finance on a new civic. by 2008 I had three credit cards, and a dell credit limit and a car loan with honda. Great for someone who’s debts were disharged in Nov ’04 under chapter 7. I do still have credit – walmart, best buy, $2000 credit line with paypal buyer credit and sears. HOWEVER, cambridge has seemed to hurt my credit. my score has gone down, not up- is this because all of my HSBC and Capital one cards were closed after I entered cambridges program? What I mean twas that I already built my credit up and now it seems I have to do the process all over again. No credit report in my history lists ANY account as anything but “pays on time as agreed”. the creditors spitefully raised my rates in mid 2009 to almost 30% for no other reason but that they could. period. so I joined cambridge so I could pay 8% interest and yes, my balances are going down. But as a result, I am being punished by having my accounts closed and not being able to get new credit. I just want to know when this chaos is going to end. Why are the creditors doing this to people and then punishing them further? It’s hard for me to believe that in 2008 – 4 yrs after bankruptcy, my credit was better-much better than in 2011-7 yrs after bankruptcy and nothing has changed with the on time payments of my accounts except for the fact that I joined cambridge and I feel this is hurting my credit badly.

  • vincent

    steve thank you for taking th etime to answer my question-I am a daily reader of your Q&A and forums. I finally spoke to a dell account supervisor today and he assured me that he is diligently looking into this with his superiors and is pushing to get my account re-opened since he did see on the report from equifax to dell that dell was listed as DFS which just did not click in my brain when checking my crdeit report a few months back. Dell also acknowledges that they made no attempt to contact me and they do feel that they were wrong about that situation, at least that’s what I was told today. I never suggested that cambridge themselves closed the account, but I am extremely angry that my credit score was much higher ( around 690) in 2008 than it is today with cambridge handling my accounts. (around 640 today) what I maeant was that after bankruptcy which was quick and painless, I built my credit back to a respectable level by 2006 and by 2008 received a great interest rate from american honda finance on a new civic. by 2008 I had three credit cards, and a dell credit limit and a car loan with honda. Great for someone who’s debts were disharged in Nov ’04 under chapter 7. I do still have credit – walmart, best buy, $2000 credit line with paypal buyer credit and sears. HOWEVER, cambridge has seemed to hurt my credit. my score has gone down, not up- is this because all of my HSBC and Capital one cards were closed after I entered cambridges program? What I mean twas that I already built my credit up and now it seems I have to do the process all over again. No credit report in my history lists ANY account as anything but “pays on time as agreed”. the creditors spitefully raised my rates in mid 2009 to almost 30% for no other reason but that they could. period. so I joined cambridge so I could pay 8% interest and yes, my balances are going down. But as a result, I am being punished by having my accounts closed and not being able to get new credit. I just want to know when this chaos is going to end. Why are the creditors doing this to people and then punishing them further? It’s hard for me to believe that in 2008 – 4 yrs after bankruptcy, my credit was better-much better than in 2011-7 yrs after bankruptcy and nothing has changed with the on time payments of my accounts except for the fact that I joined cambridge and I feel this is hurting my credit badly.

    • http://GetOutOfDebt.org Steve Rhode

      Thanks for being a loyal reader and more importantly, in submitting your question.

      I think this article will help you to understand one look at the reasons why credit counseling can impact credit. And it sounds like that article is right on track with what you’ve seen firsthand.

      The chaos will end as soon as you open new accounts and if you follow the foolproof guide to get good credit fast, it won’t take long.

      This isn’t a punishment process, it is a process thing. Credit scores are heavily weighed by current credit and history on open accounts. Your accounts were closed to get you the better rates. It’s more of a domino thing.

      You were a better risk right after the bankruptcy because creditors knew you could not file bankruptcy again for 8 years and it was prior to the economic meltdown.

      The good news is there is a way to get this all fixed by following <a href="http://getoutofdebt.org/13445/chris-has-bad-credit-i-show-him-how-to-easily-get-good-credit-using-a-bad-credit-secured-card"my credit rebuilding process.

      Steve

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