Credit Karma shows a collection I don't recognize
Credit Karma shows information from your Equifax and TransUnion credit reports, so the collection is being reported by a collector to at least one of those bureaus. Get your full reports from all three bureaus, identify the collector and the original creditor, and dispute in writing with both the bureau and the collector. The bureau must reinvestigate within 30 days, and a collector that received your timely written dispute must stop collecting until it sends proof.
The alert pops up on your phone: a new collection account, a company name you have never seen, a balance you cannot place. Your score dropped. Is it a mistake, an old bill under a new name, or fraud? You can find out, and the law gives you tools to fix it if it is wrong.
Where the entry comes from
Credit Karma says it partners with Equifax and TransUnion to provide free reports from those two bureaus. It does not create the entry. A collector, or a debt buyer, furnished it to at least one bureau.
Before a collector can report a debt, Regulation F requires it to have spoken with you about it, or to have mailed or electronically sent you a notice and waited a reasonable time for word that it was undeliverable (12 C.F.R. § 1006.30(a)). So check your mail, spam folder and old addresses for a validation notice.
Common reasons a collection looks unfamiliar:
- A new name on an old bill. The account was sold, and the buyer reports under its own name. The report often names the original creditor too.
- A mixed file. Someone with a similar name or Social Security number. See mixed files.
- Identity theft. An account opened by someone else.
- A paid or settled bill still shown as owing.
- A bill you never knew about, such as a final utility or phone bill sent to an old address after you moved.
Step one: get the full reports
The app shows a summary. You need the reports themselves. AnnualCreditReport.com is the only site authorized to fill orders for the free reports, and the three nationwide bureaus let you check each report once a week for free there. You can also call 1-877-322-8228. On request, a bureau must disclose all the information in your file and its sources (15 U.S.C. § 1681g(a)).
Compare the three. An account that appears on one report but not the others is a clue, not proof of an error, since not every company reports everywhere.
On each report, find the collector's name, the original creditor, the date of first delinquency, the balance and the date the account was opened. The date of first delinquency matters: collection accounts generally cannot be reported after 7 years, counted from 180 days after the delinquency began (§ 1681c(a)(4), (c)(1)).
Step two: dispute with the bureau and the collector
| Send to | What it triggers | Law |
|---|---|---|
| Each bureau reporting the account | A reasonable reinvestigation within 30 days, notice to the furnisher within 5 business days, deletion if inaccurate or unverifiable | 15 U.S.C. § 1681i(a) |
| The furnisher, after the bureau notifies it | An investigation and review of all relevant information the bureau sends | 15 U.S.C. § 1681s-2(b) |
| The collector, within 30 days of its validation notice | Collection stops until it mails verification | 15 U.S.C. § 1692g(b) |
Once you dispute, a collector that reports the debt may not leave out that it is disputed (15 U.S.C. § 1692e(8)). If the account came from identity theft, file an Identity Theft Report at IdentityTheft.gov; the bureau must block the information within 4 business days of receiving it with proof of identity and your statement (§ 1681c-2(a)). Our identity theft report, step by step covers it. The guide on how to dispute your credit report has the letter structure.
If the dispute comes back verified
A "verified" result is not the end. The FCRA allows actual damages, costs and fees for a negligent violation, and statutory damages of $100 to $1,000 plus punitive damages for a willful one (15 U.S.C. §§ 1681n, 1681o). The FCRA requires a company found liable to pay the consumer's reasonable attorney's fees and costs. Claims must be filed within two years of discovering the violation, and no more than five years after it (§ 1681p). Read why your dispute was verified anyway. The company pages for Equifax and TransUnion list their public enforcement history.
In New York, state law bars credit bureaus from reporting medical debt (N.Y. Gen. Bus. Law § 380-j). In New Jersey and Florida, state collection laws add to the federal rules; Florida's FCCPA reaches original creditors. See the New York, New Jersey and Florida pages. If a collector has sued you on the account, do not ignore the papers; the answer deadline is short. See sued by a debt collector.
What to do this week
- Pull all three reports at AnnualCreditReport.com and save them as PDFs.
- Screenshot the Credit Karma entry with the date.
- Write down the collector's name and the original creditor.
- Send written disputes to each bureau and to the collector. The letter builder drafts them.
- Mark a date 30 days out and check your reports again.
Sources: Credit Karma, free credit reports; FTC, Free Credit Reports; 15 U.S.C. §§ 1681c, 1681c-2, 1681g, 1681i, 1681s-2, 1681n, 1681o, 1681p, 1692e(8), 1692g; 12 C.F.R. § 1006.30; N.Y. Gen. Bus. Law § 380-j.
Common questions
Can I dispute through Credit Karma?
Credit Karma shows Equifax and TransUnion data, but the legal duty to reinvestigate belongs to the credit bureau. Disputing directly with each bureau that reports the account, in writing with copies of your documents, gives you the clearest record.
Why does the collection not show on my Experian report?
Not every creditor or collector reports to all three bureaus. Credit Karma does not show Experian, so check your Experian report separately at AnnualCreditReport.com.
Can a collector report a debt without ever contacting me?
Under Regulation F, a collector may not furnish information to a credit bureau before it has spoken to you about the debt, or mailed or electronically sent you a notice and waited a reasonable time to learn whether it was undeliverable.
Tell us what they did.
One conversation with an attorney, in your language. We tell you which laws the collector or the credit bureau broke, which deadline runs first, and what to save this week. If it is not a case we can take, we say so and tell you where to go.
(718) 484-7510The FDCPA and the FCRA require a company found liable to pay the consumer’s reasonable attorney’s fees and costs. Our fee arrangement is confirmed in a written retainer before we begin. English, Russian and Spanish in-house; an interpreter for any other language.