A closed account being reported as open inflates your apparent debt load and distorts your credit utilization — two factors that directly affect your score. This is a factual inaccuracy the FCRA gives you the right to correct and, if ignored after a dispute, to sue over.
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Your credit utilization ratio — the percentage of available credit you're using — is one of the most heavily weighted factors in your credit score. When a closed account is incorrectly reported as open, lenders see you as having more available credit and potentially more debt than you actually do.
For revolving accounts like credit cards, this can artificially inflate your utilization rate. For installment accounts, it can make your debt load appear higher than it is. Both affect how lenders assess your creditworthiness for mortgages, auto loans, and other credit products.
Under the FCRA, furnishers are required to report accurate information. When a creditor closes an account but fails to update the status with the bureaus, or when the bureau fails to correct it after a dispute, that is a violation of federal law.
The account status still reads 'Open' months or years after you closed it or the creditor closed it.
A credit limit is showing on a closed account, inflating your total available credit with false information.
Because of the false open status, your utilization ratio appears higher or lower than your actual usage.
The closed account shows a remaining balance even after it was paid in full and closed.
The creditor closed the account due to inactivity or risk, but never updated the reporting to reflect the closure.
You submitted documentation showing the account was closed and the bureau or furnisher refused to update the status.
From your first submission to resolution — here is what to expect.
Tell us what happened. We review your discharge paperwork and credit reports at no cost.
We send a strategically crafted dispute letter to preserve your legal rights and set up litigation if needed.
If the bureau or furnisher fails to correct the error, we file your FCRA claim in federal court.
FCRA cases are handled on contingency. Attorneys’ fees are typically paid by the defendant.
Tell us what happened. We review every submission within one business day.
Tell us what happened. We respond within one business day.
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We received your submission and will review it within one business day.
A licensed attorney from Haseeb Legal PLLC will be in touch shortly.