What can I do about a collection agency reporting 15.00 paid on my credit report one month after being paid?
Hi
I received a Medical bill for 15.00 from a collection agency. Five days after I receive the notice, I quickly paid the 15.00. This was a copayment after my insurance paid there portion. I really hate these copays, and I prefer the offices that collect them at the time of service because given my conditions these copays can cause problems. I made the payment to the collection agency on Aprill 5 2006. I check my credit report almost dailly and then I archive the old credit reports. ON May 8, 2006 I check my credit report and I see the 15.00 showing up as a paid collection.
This was on none of my credit reports. I went back and check my credit report from the April 3 through May 8, and this only appeared on May 8. I have disputed this and it has not been removed from my files. I am not sure if this is legal but it is extremelly malacious. I just don't know what to do. I would really appreciated any advice.
Brain Injured
Nik
It can take up to three months for changes to appear on your report. The delinquent $15.00 just showed up because it takes a while to get there. The payment will take as long to appear.
It can take up to three months for changes to appear on your report. The delinquent $15.00 just showed up because it takes a while to get there. The payment will take as long to appear.
References :
The report is correct. It was in collections..and you did pay it. Therefore it's now a "paid collection" and the collection agency is being a total jerk about it.
I have tried to warn people over and over about this. That's why I tell people to demand IN WRITING that if you pay the debt, they must remove any negative information from your credit reports.
Just because it says "paid" on it, does not mean all negative information has been removed. A "paid collection" is just as bad as anything else they can put on it.
But you appear to have a loophole here that you can use.
According to the Fair Debt Collections Practices Act, if you dispute a debt within 30 days of receiving the first notice from a collection agent, they must "cease and desist" all collection activity until they can verify that you have a debt. You claim that 5 days after receiving this, you sent them their money.
I'm no lawyer, but to me this constitutes a dispute letter/demand to validate. If the debt is paid, then they couldn't possibly validate it.
Send a letter to the credit reporting bureau and point these facts out, and dispute the entry. Send whatever proof (copies of letters, checks, whatever) along with it to prove your case.
My guess is they won't budge, because the collection agent will defend their position. Next step is to send a VOD demand to the creditor with this same dispute facts.
If they still won't remove it, consult with a lawyer and have him pull up this portion of the law.
Personally, if it was me they were doing it to, I'd file a small claim lawsuit against them and see what happens.
Maybe one of our friendly collection agents who regularly post here would respond with their opinion.
Bottom line, you got screwed. Next time get something in writing before you send them any money.
References :
ยง 809. Validation of debts [15 USC 1692g]
(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing –
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(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.
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.