What Does It Mean When A Lender Updates And Closes And Account After A Dispute

If the lender updates the information on the credit report and the account status now shows the account as updated and closed then that is exactly what it means. It means that the account was either already closed but was being wrongly reported to the credit bureau or that the lender agreed to close it as per your dispute. Closed means that the account will no longer be open to future charges. However, whether or not the account had zero balance or not will make a difference on whether you still owe the lender money or not.

If your payments were all current before the closing then you will not be expected to make any further payment. However, if there was an outstanding amount then the lender may pass that amount to a collection agency after writing it off in his account when closing the account.

In order to know whether the lender is expecting you to make further payments on the account, you should contact him immediately to be on the same understanding on the matter.

Sometimes when the lenders write off a debt and pass it off to a collection agency, they give the details of who they are passing or selling the debt to. Likewise if a collection account is opened it will be reported to your credit report and you will be able to see this information once the collection agency reports it.

So its possible that if there is no mention of the account being sold to a collection agency, the lender does not hold you liable for a further payment. However, it is a prudent idea to check with the lender first.