wrong collections report

Discussion in 'Credit Talk' started by frank d., Sep 7, 2000.

  1. frank d.

    frank d. Guest

    I have an entry on my CRs' from a collection agency for a debt that I paid to the original utility that I owed it to. Not knowing it had gone to collections, I paid the originator. I called the collection agency and they will not update the entry on my CR until I pay them their $30.00 collection fee. Should I just pay it or dispute it with the CRA? The utililty company does show it going to collections but as being paid...late.

    Thanks,
    Frank
     
  2. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    Donâ??t Pay The â??Collection Feeâ?

    Frank:
    Heck NO, donâ??t pay the collection agent! Truly itâ??s only $30 bucks and not a great deal of money, yet on principle based on what youâ??ve indicatedâ?¦ Fight it!

    Since youâ??ve paid the original creditor and probably have proof of this, I suggest first disputing directly to the CRA(s) and provide copies of your payment. You may also want to document to whom you spoke with at the original creditor, when writing to the CRA(s). (This info may come in handy later.)

    FYIâ?¦ Collection agencies are notorious for trying to collect piddlie fees, and (generally speaking) unless there is a WRITTEN agreement to hold you liable for these they canâ??t. That is, every case Iâ??ve ever handled where the agent demanded a fee was either rejected by the court or otherwise found uncollectable. It is commonly established that collection agencies work on percentage, not escalating fees irrespective the amount.

    Keep The Faith,
    Anthony Villaseñor
     
  3. Pat

    Pat Guest

    RE: Donâ??t Pay The â??Collection

    Get proof from the creditor that you paid the bill, then sue the collection under the FDCPA in small claims court. The FDCPA prohibits collection agencies from collecting paid debts, and provides a $1000 civil penalty if the collection agency does so. A collection agency can raise the defense of "bona fide mistake" against such an FDCPA action. I am of the opinion that the collection agency is behaving in bad faith, and that the defense of bona fide mistake does not apply here. Since they have reported this bill as unpaid to the CRAs, I'd sue the collection agency for libel too. (The FCRA limits liability to CRAs). I had something similiar to this happen- a late fee from a video store. The video store sent the bill to the wrong address, as did the collection agency. Sue 'em, then negotiate.
     
  4. frank d.

    frank d. Guest

    RE: Donâ??t Pay The â??Collection

    Thanks for the advice. I've thought about suing the collection agency but it is really the originals' fault. It's been on my credit report for 2 years. I'm pissed. I am going to dispute it. I'm sure the CRA will take it off. I just wasn't sure if I had to pay the 30.00$

    Thanks again,
    Frank
     
  5. frank d.

    frank d. Guest

    RE: Donâ??t Pay The â??Collection

    I've thought about suing them. It seems like a total F**K up on both parties. If anyone should be sued it should be the original creditor for not notifying the collection agency....It's been on my credit report for 2 years.

    I'll take it under consideration.

    thanks,
    frank
     
  6. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    To Sue Or Not To Sue..?

    Frank:
    Although Pat is correct in spirit I do not agree with his method, â??sue 'em, then negotiate.â? This is because of a legal principle known as CONTRIBUTORY NEGLIGENCE, in that a presumption rests on your to attempt resolution of issues before litigating. Having said that, however, an â??attemptâ? can be considered one (1) formal writing to the collection agent, demanding a retraction and warning of FDCPA violation(s). Do this after you dispute with the CRA(s), however, and certainly if the item is not removed.

    In so far as suing the original creditor, I donâ??t suggest you go there. As I understand your post youâ??re dealing with a utility company and theyâ??ll most likely drag you from Small Claims into Municipal Court â?? under a number of causes that qualify under cross-complaint. Utility Companies have deeeep pockets and will often litigate on principle, so as not to establish the precedence for use during PUC reviews. This would escalate your costs forcing the need to retain counsel or self-representation, both of which are time consuming and expensive. Of course Iâ??m speculating a bit here, but you get the idea â?? why lite any fires you neednâ??t.

    All in all, â??IFâ? you decide to litigate take Patâ??s suggestion and do it in Small Claims. The likelihood is high, in the extreme, that the collection agent will propose a compromise (settlement offer) worth your wild. If they donâ??t you may also want to consider retaining counsel, because from what youâ??ve indicated you have a strong case in light of the payment in full. You can always dismiss the Small Claims matter without prejudice, if an attorney so advises.

    Keep The Faith,
    Anthony Villaseñor
     
  7. frank

    frank Guest

    RE: To Sue Or Not To Sue..?

    I agree, I just want to get it off my CR. I am going to mail in my proof of payment to the CRAs' and dispute to have the entry removed. If that doesn't work then I will notify the collection agency to have them remove it as you suggest....If that doesn't work then i will threaten a law suit.

    This board is great!

    Thanks,
    Frank
     
  8. Pat

    Pat Guest

    RE: To Sue Or Not To Sue..?

    Contributory negligence is a common law principle applying to personal injuries and accidents, in which the injured party is negligent. Most jurisdictions have replaced contributory negligence with comparative negligence.
     

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