Hello, Ack! My credit score fell 100 points over nothing. Quick setup: after threats of a negative credit rating from a collection agency, I made a payment to them for a "debt" that was a billing error by the phone company. The collection people basically told me that paying them and reconciling with the phone company later would prevent negative marks. The phone company basically promised a resolution, but not in a timely fashion, so I paid the agency. Well, I resolved the issue with the phone company (with a credit on my account - rather than a debt - I have all supporting paperwork). I checked my credit report and it's now listed as a negative mark that I paid a collection agency! ACK! Can I dispute this, since the original debt never existed? I also applied for a car loan last year that I never used - and put a few equipment purchase on my credit card (since paid down). These three things have resulted in my credit score going from 760+ to 660, with ZERO change in my actual financial dependability.
It would appear this applies: FDCA: Sec. 1692e. - False or misleading representations A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: ... (2) The false representation of - (A) the character, amount, or legal status of any debt; ... (10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer. Since you have documentation from OC that the debt was not "owed", and they represented either that is was "owed" or that if it was not "owed", paying them would avoid damage to your CR, it would appear that they have run afoul of the above. Even if they claim they did not know, they would still have a responsibility to remove the TL. The OC may also be responsible for the actions of the CA, whether they knew or not, since they made the original mistake, and their documentation shows their intent to correct. It also appears the CA did not buy the debt. Neither party has anything to gain, and a lot to lose, by maintaining a false TL on your CR. If you have your documentation in order, and you hit both of them, they should cave.
Try asking the CRA to verify not through the CA, but through the OC. Tell the OC that the CA refuses to delete the eronious error to their tradeline which was never suppoed to have been turned over to the CA in the first place, and that they can be held civilly liable for the damages caused by their error, and the CA's efforts to not correct the error with the CRAs. You want them to immediately contact the credit bureaus to correct the erronious tradeline which should never have appeared in the first place since they should have never turned the account over to a collection agency in the first place, because they made a mistake. Hopefully, when the OC gets the verification request, they'll fax or send a deletion letter to get rid of the problem. Was the account in dispute with the phone company before the account was turned over to the CA, because if it was, then them turning the account over to the CA could also be in violation of the FCBA, Fair Credit Billing Act.
The reporting agencies won't do a verification through the original creditor, they are not reporting the tradeline. Contact the OC as was suggested and also send a dispute letter to the collection agency. After you've done that, dispute the tradeline with the CRAs. If it comes back verified you can nail the CA for WILLFUL noncompliance of the FCRA for knowingly reporting false information. Always request validation before paying a collection. The validation must come from the OC and this would have given you a solid paper trail. Also make sure you get any agreements with a CA in writing. If you could prove they told you they wouldn't report it and they did anyway, that would be an FDCPA violation. It isn't what you know, it's what you can prove. Gib
