“Stop Disputing Accounts When You Owe the Money”

“Stop Disputing Accounts When You Owe the Money”



I recently met with a client to discuss future plans to purchase a home but it wasn’t going to happen anytime soon. There were 13 Collection accounts that were on the credit report. All showed as disputed and when I asked the client about these obligations, she admitted they were all in fact owed. But she explained that the company that she has been paying to repair her credit said they will be putting disputes on the credit in hopes that the collection agency or the creditor will remove them, but it seldom happens.


When the credit bureaus then contact the collection agency or the creditor asking if the obligation is still valid, what do you think they are going to say? These companies are not stupid and understand what the credit repair companies are doing.


If the obligations are real they need to be settled otherwise the credit bureaus are going to be notified every month or most of the time. Two things need to happen, each collection agency or creditor needs to be contacted and the debt needs to be negotiated. I always recommend to start with the smallest debts first. Second, all the disputes need to be removed from the three credit bureaus.


Sometimes the debts total an amount that would be impossible to handle and bankruptcy may need to be considered. That is not something I usually recommend but it needs to be considered. If someone goes that route and credit is re-established, a Government mortgage can usually be obtained after 24 months, a conventional loan after 48 months.


If there is a foreclosure, deed in lieu of foreclosure or short sale involved it may take longer.


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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 35 commentsJoe Petrowsky • September 25 2015 07:28AM


Good morning Joe.  the only negative showing up on my credit report would be medical.  I'm working on getting those paid but it a work in progress.  

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty AR LLC) over 3 years ago

 Good Saturday morning Joe. Our bureaus are one of the most important things that we need to focus on and maintain a good standing with.

Posted by TeamCHI - Complete Home Inspections, Inc., Home Inspectons - Nashville, TN area - 615.661.029 (Complete Home Inspections, Inc.) over 3 years ago

Credit "repair" does not mean credit "ignore" as in do not pay what is owed...abd too many people in credit busienss have given that advice to clients.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) over 3 years ago

Yes, some of those places try some tactics that generally don't work.  Consumers need to be wary of these places.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) over 3 years ago

Ya gotta love those credit repair companies.....seems like many times the do more harm than good.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) over 3 years ago

Good morning Joe. It's an old story but still apropos: don't lie and get on with it.


Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) over 3 years ago

I recently met a prospective buyer  who said she disputes bills and that the customer is always right. I was shocked to hear her and do not think she will ever be able to buy a house.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 3 years ago

Joe, honesty is the best policy. If you owe it, pay it. Negotiate if you have to, but get it done. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) over 3 years ago

Good morning, Joe Petrowsky don't spend more than you can afford to pay back.... simple rule....

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) over 3 years ago

Joe Petrowsky It has to be frustrating for all involved to deal with confused people. Been there and done that and so many of these folks have to be put on the 'back burner' , because it takes so long to clean-up their credit. Good post.

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Geneva Financial, Llc.) over 3 years ago

Joe, sounds like this person needs to figure out how to budget, and take responsibility. 

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) over 3 years ago

Good morning, Joe -- and denial is not just a river....just sayin'.    

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 over 3 years ago

Joe, it constantly amazes me to read about things credit repair companies do to goof up their clients' credit.  Yikes!

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 3 years ago

Joe Petrowsky This isn't your first post about the problems created by credit repair companies. My question is, why do we still have these guys?

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 3 years ago

Joe - I think some of these so called credit repair companies are more trouble.  Anyone lucky enough to talk to you and follow your advice will be much better off.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) over 3 years ago

At some point in time the bullet needs be bit and responsibility taken.  Enjoy the weekend Joe.  Mark

Posted by Mark Don McInnes, Sandpoint, North Idaho Real Estate - 208-255.6227 over 3 years ago

It isn't a complicated process and I urge my customers to undertake the responsibility of their credit upon themselves rather than a 3rd party. They may learn something in the interim by doing so.  

Posted by Kevin J. May, Serving the Treasure & Paradise Coasts of Florida (Florida Supreme Realty) over 3 years ago

This is good advice for consumers with credit issues. I will schedule a re-blog.

Posted by Roy Kelley (Realty Group Referrals) over 3 years ago


So much misinformation from so many people.  Glad you told her the right way to do things.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) over 3 years ago

Joe what a waste of everyone time to do that.  Credit Repair Companies are a waste of money in my opinion.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 3 years ago

Which is why I tell people 12 to 18 months prior please talk to a lender and prepare.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) over 3 years ago

Joe what great nugget of information and I agree with our friend George Souto  that Credit Repair Co do a disservice to the person....why not settle it directly with the person or entity the money is owed to....Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) over 3 years ago

What a waste of time Joe. Why not just pay your debts and be done with it?

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) over 3 years ago


The customers need some professional help to successfully clear up their credit issues.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 3 years ago

I do find that most people that dispute everything are those that want to get over on people and their way through things.

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) over 3 years ago

Clear and credit and paying off debt and decreasing liabilities is all one big way to get rid of the headache!

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) over 3 years ago

That comment was for Lou specifically—specifically referring to what he said about credit accountability. Lou Ludwig

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) over 3 years ago

Hi Joe.  I'm not sure that someone with 13 credit issues is ready to be a home owner.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 3 years ago

I think that is just wrong to dispute an account that is owed. Most of these will negotiate it down so the right thing to do is step up and pay the piper.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 3 years ago

I also give the advise to get a pre-qualification a year in advance so that the home buyers will know just exactly where they stand with their credit. It is the correct way to chart a path to successful home buying.

Posted by Sussie Sutton, UTR TEXAS Realtors - Rep for buyers and sellers. (UTR Texas Realtors) over 3 years ago

Joe, with that many collections they might want to talk to a bankruptcy attorney. There are so many scam debt relief companies out there, buyer beware.

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) over 3 years ago

This sounds like someone I wouldn't want to do business with. Pay your obligations. It's the right thing to do. 

Posted by Debbie Laity, Your Real Estate Resource for Delta County, CO (Cedaredge Land Company) over 3 years ago

I'd not heard of this concept that someone disputes an obligation that is truly real... I've never been sure that these credit repair companies really do right by their clients, Joe.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) over 3 years ago

As I tell my borrowers, be responsible and accountable to lenders and your credit score WILL go up.   As it goes up, so does your chance of getting better loan rates in the future.

Posted by DEANNA EARLY - - ( NMLS # 268590 ), Highest Ranked Mortgage Loan Originator Virginia (American National Bank & Trust) over 3 years ago

Great advice, don't dispute what you know you owe.  They are going to need to be paid now.

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) over 3 years ago