I have a collection account in the amount of $70 for an electric bill on my CR. I intend to dispute it (it's not even at the address I've lived at for six plus years now but a completely different address during that time!) but in the meantime or assuming the public utility sticks by their "verification" that I'm responsible because they said so, so there, no signature on an account, id, or common sense required - should I pay the $70 for some immediate rise in my score? An auto dealer just told me that paying off that collection would raise my score "like fifty points" which I doubt but ... is it worth it to pay the danged thing even while I dispute it? Or does a paid collection not raise the score much? Or does paying it send some message that you are "accepting" the debt (the principle of which got me in this fix in the first place when I repeatedly refused to pay this bill that clearly IS NOT AT MY ADDRESS!!!) So: collection on your CR that is not yours and you hope to dispute. Pay for short-term score gain (if any) or let it rot there forever and attempt dispute?
I am NOT an expert, but I do NOT think you should pay it. The experts on this forum can correct me, but I believe you can request a validation to prove that it is actually yours. If they can't prove it, demand for a deletion. My 2 cents.
Dispute it over the phone with the CRA's. Tell them that the account is NOT MINE as I clearly have never lived at that address! If that doesn't work, dispute it with the CRA's. They normally will delete an account with such a low amount! I disputed a $56 collection and they deleted it! Almost identical to what you have.
If it isn't yours, don't pay it! Dispute, validation, small claims, whatever, it will come off. I think you should have luck with a dispute. Not mine - never lived at this address/never authorized any such account. Your right too, a paid collection will not raise your score much, if at all. You might do more damage paying, because now you have a paid collection on your account that you will have to get rid of and validation is not required on paid collection accounts.
Auto dealer is clueless. A paid collection is just as bad as an unpaid collection for FICO purposes. Try to get rid of it! Take a look at this thread. It is Robin's unpaid chargeoff nutcase letter. She explains her rationale, and the recommended order of things. The letter hints at fraud and Identity Theft, which from what you are saying, would be legit for you to mention. http://consumers.creditnet.com/stra...=36952&highlight=nutcase+AND+unpaid+chargeoff
If its not yours you could send the utility an intent to sue letter. Or you could just sue em. Their legal department would likely get involoved and take a closer look than their billing department.
Sometimes paying collection accounts renews their last activity date which can KILL your fico score! The dealer is clueless. And paid accounts aren't treated any differently by FICO (although they claim they will correct this in the future).
This is a weird one because it IS a utility at a home we own (rental property) but I had rescinded the so-called "landlord's authorization" which allows them to auto-roll a tenant's service into my name when said tenant moves out (or, as it turns out, defaults and rather than have service disconnected gets it automatically rolled into MY name so they can live on my dime for a while). The utility in question failed to note the rescinded "ll's authorization" and simply transferred the account into my name once again. It was one month's bill and they now say it's too bad but they don't HAVE to have a signature or any proof before putting it into my name - they just can, because they did in the past, blah blah blah. So it's a "dispute" of the type that it is NOT mine but it's likely to come back as "verified" because Ohio Edison believes that once they have your info they can ALWAYS have your info and, apparently, put anyone's service in your name if they feel like it (or, more likely, if they know you are more likely to pay it than the person they previously shut-off) Sorry so long-winded but you can kind of see how it's going to be a weird one to "verify" because the fraud (putting service in my name without my specific consent in this instance and in light of my previously rescinded general consent) was perpetuated by a public utility that doesn't give a damn really.
One recommendation I have is to, first dispute that address as not yours on your credit report get that off of there, before disputing the utility bill for that addy.. Makes a big difference with alot of accounts.. I only keep my parents address an my current one on my reports.. Since I just bought a house... Those are the only two on there.. use to be like 7 .. all apartments..
This might or might not be similar. When I met my ex-husband we got a copy of his credit report. There was an account in collections for a phone bill. I contacted the phone company and got all the information such as the phone number and address of this account. I told them that he never lived at the address where the telephone number was listed. I had to contact the fraud department at the telephone company and they instructed me on what needed to be done to dispute this account. I had to send a copy of his drivers license, a copy of his W-2 form for the year the phone account was opened, and a signed and notorized letter from my ex that this was not his account. After this was all said and done, we found out that a good friend of his used his social security number to open this account. This was cleared off of his credit report.
Thanks. I'm disputing the address. I appreciate the input. The utility co's attitude was pretty much "well did you file a fraud report?" as if by not doing that (against THEM mind you) made me culpable for any and everything. It's cra-zee!
Re: Collection: to pay or not to pa Well ... we can't prove it but I've often suspected that my spouse's Jr/Sr credit mix-up might've started when his parents couldn't get an auto loan and allegedly, maybe, could've (see me cya) substituted his SS# for his father's back in the day ... But as I said, it can't be proven and hey, what's a little id theft among loved ones????
