For those of you who have collection accounts on your credit report there is a process for getting them removed. There are two issues. First the fact that they are attempting to collect a debt and secondly that they have reported that to the three major bureaus. (Steve Blisko) I'll address handling collection attempts in another thread later. For now I thought this information would be useful to some of you. The Fair Debt Collection Practices Act is the law that governs collection agencies in the U.S. This is a federal law (see; http://www.ftc.gov/os/statutes/fdcpajump.htm ) When a collector reports to the bureaus you have only two options to have it removed from your report. 1) Negotiate the debt and include a stipulation in writing from them that the account in question will be "deleted" and or "removed" from any credit bureau report. Failing that do not admit to a debt or pay any money without such a stip. 2) Challange the debt and through the law render the debt or reporting thereof "false" To accomplish #2 you need to know how the process works and how to employ it. Section 809b of this law states, "b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. " This is critical. Send a letter to the collection agency informing them that you dispute the debt and that you want the following sent to you. Send your letter certified mail return receipt requested. 1) Original Signed Application 2) Any & All signed receipts 3) Any and all checks or payments 4) All Statements 5) Dunning Notices (late notices or letters sent by the creditor or collector) Remind them in the letter that in accordance with 809b you will wait 30 days for ALL of these proofs to be provided. In almost every case they will only send statements or nothing at all. This kicks in section 807(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed" If they cannot or do not send the proofs requested then the debt is false or should be known to be false. It therefore cannot legally be reported to any 3rd party. So what do you do next? You do not call the collector EVER. You contact the credit bureaus at their main#s listed below and tell them that you requested proof in accordance with the law and the you did not receive it. The collection(s) need to be removed and you are willing to fax the letter, certified return receipts and any follow up to the bureaus to show that the statute was followed. First level support at the bureaus will not understand this. Use the main numbers and ask for either Executive offices of consumer relations or similar department. If they ask on the phone if you "owed the money" you state that your entire dispute is discussed in the copies you are faxing. Do not discuss it on the phone. their goal is to get you to admit that you did owed something in which case they will not help. Equifax phone = 404-885-8000 Experian = 714-830-7000 Trans Union = 312.985.2931 Best of Luck, Steve Blisko
Does it work for Property Tax Bills? I got screwed several years back by the local County governement on a Property tax bill for an auto. I had bought the car early in the year and only had it for a few months. When I bought the car (used) I paid tax on it then for that year (the current year). Then I traded it in when I was able to buy a new car - and again paid taxes on the new car. This was at the end of 2001 and the txes paid on the new car would cover for 2002 and my next tax bill would be for 2003 and come in the mail around Sept of 2002. So, I did not expect any sort of Property tax bill in 2002 for the used car that I traded in back in 2001. I never received any sort of notice or bill or anything. At the end of 2002 or maybe Janurary or so of 2003 I paid the Property tax bill on the new 2002 car I had and thought everything was hunky-dory. Then in April I had to renew my Plates and in NC you can't renew your plates unless your Property taxes are paid (at least auto, not sure they hold them back if you owe Property tax on a house), and when I tried to renew I was told I still owe back taxes for 2002. I told them no and they said yes and I was stuck cause I HAD to renew my plates in order to be able to continue driving my car. In NC this is how they force people to go pay their Property taxes. It was only around $48 or so and so I went downtown and paid the damn thing (that I really never should have owed) just so I could renew my plates and keep driving. I never thought anything else about it until about a year later I checked my report and there it was, a Collection Account on my report for $48 but showing s status of Paid and $0 balance. There was something on there about total account time or collection time being 1 month. In other words, once the County tax office collected taxes on an old vehicle that had already been traded in and that I didn't really owe - but paid anyhow just to sidestep all the B.S. and delay in getting my plates renewed ... it appears as soon as they got the $48 they reported it as a Collection Account and as being Paid off at the same time or within the same month. I tried calling the Tax office several times and they simply refused to remove it and said if I owed the back taxes there was nothing I could do - I tried telling them I didn't owe it in the first place but then they asked why did I pay it. I told them cause NC uses what amounts to blackmail and heavy-handed techniques in forcing people to pay these bills (whether they legitimately oew them or not) just so we can get our new Plates and continue to drive and support our livelihood. Of course this fell on deaf ears. Anyway to use your methods described above to get this type of Collection account removed? It is listed as a collection from a "tax lien, tax authority, attorney, ... or something else..." and now last time I looked it doesn't even show that it was $48 owed, it doesn't show what if any amount was owed, just that it was open for 1 month and Paid and a $0 balance. Any advice? BTW, is it too late in the year to try and CHOD anything?
I have a subcontractor that we had to backcharge him for work that had to be done due to problems with the work he did. I sent him a ceritified check for the amount he was due minus the charges from the other subs for repairs they had to make due to work and I sent him a letter explaining this with copies of the bills. He cashed the check and then decided that that he would charge for other items after the fact. One of them is valid and I have no problem paying that but the rest are not valid plus he is deciding that he doesn't feel the other subs bills are valid. I have emails regarding the damage that was done, I also have 5 different emails and bills where the sub states in writing exactly what the amount due was before he decided to add things on, I have the bills from the other subs. Should I send all of this when I dispute the collection company? And should I pay the part that is valid when I send all of this?
No I haven't done that. I had thought before finding this site that I should send the info to the collector. SHould I send the portion that I agree is valid to the collection company?
You might first contact the contractor to attempt to reach a settlement, making clear that you intend to file such a complaint if no settlement can be reached. Insist that as part of that settlement, the collection account must be recalled and no negative information reported. In effect, trade your agreement to not report for his agreement to not report. You might combine this with also filing a BBB complaint, so he sees you will file complaints and his problem is starting to become publicly visible. Also, dispute the account in writing with the CA. This is NOT just a collection account, which is how it will appear on your reports if reported. It is a dispute over the adequacy of the contractor's work, and what it cost you to fix it. Your position is that reporting it as a "collection", even if you reach a settlement, is erroneous. He knew there was a dispute about the work when he sent it to collection to pressure you to pay despite the dispute.
Yes. Whenever a CA sends you a demand to pay a debt, and especially when the amount is in dispute, you want to both dispute and request validation, in writing, CRRR, within 30 days of receiving their letter, to block them from "assuming the debt is valid" until they validate.
Is this a case where the contractor did not pay the subs or suppliers, so you had to in order to prevent a lien from being placed?
As I said he was paid, but wants more because he is mad, but besides that in my area you only have 90 to accomplish the lien process. We are way past that at this point.
On what basis does he want more? Was there a contract, did he perform according to the contract, and did he receive what was in the contract?
One item that he was charging on was based on an error someone else made. That is portion I have no problem paying. Same as I did with him, if one sub causes a mistake that causes another sub extra work that was not part of the original work, then the sub who made the mistake is responsible for the charges. Again, I have no problem paying this because I will backcharge the other sub for his mistake. I had advised him that had he told me about this sooner it would have been taken care of sooner. Bottom line though, he is deciding to charge on this because he is pissed. The other item is also based on his mistake but he is trying to say that we didn't provide a kitchen layout. The plans on the site are an exact match to the cabinet layout, in addition he used the plans to determine where the sink, dishwasher, refrigerator and kick plate blower would go. At the time it happened he tried to say that it was our fault and he was immediately advised the plans were there for him and he didn't argue. But again, now that he's pissed for being backcharged, he wants to try to use this again. I have emails back and forth that substantiate everything that I am saying, so that will help with filing a complaint.
Hey Steve do you have the fax number for the head office for Ex? Also do you know the CEO's name there?
What was the basis for your offsetting your payments to other subs by reducing your payment to him? Have all subs and suppliers been paid, and has he made all such payments for which he was responsible? If you add it all up, and compare what has been paid vs. what he claims he wants, where do you stand? Have you paid him directly in accordance with the original contract, and are these additional claims above and beyond that? In other words, how far off is the documented paperwork and actual payments from any additional claims that came along later?
The final bill was supposed to be for $2385, he was paid $1810. There were two bills he was backcharged for, $175 for sheetrock repairs and $400 for chopping up a concrete floor to repair where the drain was placed. He was given copies of both bills. But now after I gave him that info he submitted me to the collection company for $1007.70 (the $575 plus $482). He added additional fees after the fact. I have as I said 5 different invoices and emails all stating that the final bill was for $2385 but then after he received the certified check he added the other fees to bump it up. One of the fees for $90 I have no problem paying. I had told him when he originally complained that he was going to be charged that if there was something that another did that caused him more to give me the bill and I would backcharge the other sub so he can be paid. He absolutely deserves that, but the other thing he added cause he was pissed and had no leg to stand on based on the proof I have.
