Thank you for your question. I'm very sorry to hear about this situation.
You do have a legal remedy here. First, you need to write a dispute to the credit reporting agencies regarding the asserted debt on your credit report. This may be done by sending a letter (form at: http://www.myfico.com/crediteducation/rights/sample-letter-of-explanation.aspx) to the following addresses by certified mail:
P.O. Box(NNN) NNN-NNNN
P.O. Box 9701
Allen, TX 75013
P.O. Box 2000
Next, you have the right to sue the apartment complex for "negligent damage to credit" and for a "declaratory judgment
". The "negligent damage to credit" claim concerns the monetary damage you have incurred because of their failure to accurately report that you have paid your bill. This would give you money damages for the delay in building that you are going through now.
The "declaratory judgment" action would allow you to have the court declare in an order that you do not owe any more money to the apartment complex. This declaration can then be shown to the builders and any future lenders.
Finally, you should send a certified letter to IQ Data declaring your formal dispute of the account and providing them with evidence that you have paid the overdue amount in full. Demand that they immediately halt all their collection efforts, as required under the Fair Debt Collection Practices Act.
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