I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation.
The easiest way to fix your c may be to file a dispute directly with the credit bureaus. Let them contact Wells Fargo, find out that the account is not closed and is still being paid, and retroactively correct your credit report. If you file a lawsuit, a judge can order Wells Fargo to fix your credit - but the lawsuit itself could take a few months, since that's not the type of case handled by Small Claims, and then you still have to wait for Wells Fargo to fix it once you get a judgment against them.
In addition, you have the ability to sue for a violation of the Fair Credit Reporting Act. If you can prove that you have lost money due to the negative account on your record, a judge can order Wells Fargo to pay you that amount. If you don't have evidence showing exactly how much you're out, a judge can order them to pay you up to $1,000 as a penalty, plus your costs and attorney's fees. If the judge also has authority to impose punitive damages. Another option is to send their legal department a letter, with a copy to the mortgage department manager, explaining that they're in violation of the FCRA and that you'll sue if they do not take steps to fix this problem by a deadline you give them (and pay you an amount that you think is fair, based on the above). You can also remind them that if you have to hire a lawyer, you will ask the judge to order them to pay your fees, which could easily be a few thousand dollars.
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