I was told by my bank I had a collection on my credit score. I tried to call the company (charter) to pay this collection and they told me that a collection agency was handling it. I contacted the collection agency and they said they no longer had the collection. How do I go about challenging this on my credit report??
In most states, you are legally entitled to get a free credit report, each year, from each of the three credit bureaus. You can see your credit report (not score), immediately, for free, from annualcreditreport.com. From there, they will transfer you to each of the reporting bureaus. You can then contest any charges that you think you don't deserve. You should get a response back within about a month and a half.
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AnnualCreditReport.com is the official site to help consumers to obtain their free credit report.
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Odds are, I will not change your views and you will not change mine. So, let's just agree to disagree. -- Dianna AKA Believer-Always-- (Not to be mistaken for the other poster with a similar screen-name)
I was told by my bank I had a collection on my credit score. I tried to call the company (charter) to pay this collection and they told me that a collection agency was handling it. I contacted the collection agency and they said they no longer had the collection. How do I go about challenging this on my credit report??
Do you know which agency the bank was using? The quickest way would be to contact that agency. I pulled mine a few years ago and TransUnion showed bills I had never had but Equifax and Experian didn't. Amazing how much they can vary.
I was told by my bank I had a collection on my credit score. I tried to call the company (charter) to pay this collection and they told me that a collection agency was handling it. I contacted the collection agency and they said they no longer had the collection. How do I go about challenging this on my credit report??
You basically have two options with a collection tradeline. First is called a "dispute". You go to the website credit reporting bureau that is showing the collection on your report and initiate a dispute. They will confirm that the collection is no longer active and delete it. You might have to go to all three bureaus (Equifax, Experian, and Transunion) to do this.
Because collections only reflect a separate underlying debt, the collection agency line on your report should disappear after the collection is satisfied. (Though the original creditor's will not - though not all creditors report and I don't think Charter does).
The other option is to send a certified letter to the collection agency and ask them to validate the debt (and prove their authority to collect it), or, if the collection is no longer active, they must delete the tradeline.
I was told by my bank I had a collection on my credit score. I tried to call the company (charter) to pay this collection and they told me that a collection agency was handling it. I contacted the collection agency and they said they no longer had the collection. How do I go about challenging this on my credit report??
You're first step would be to obtain credit reports from all 3 bureaus. You're next step would be to request a Debt VALIDATION (not verification) from the collection agency. I would send it via certified mail with return receipt (so you can have the green card as proof, in the case things get to a legal point).
If the collection agency can't validate the debt, they'll have to remove it from your report. If they do validate, try to negotiate a "pay for delete", where you offer to give them money in exchange for deleting it off your report. If they agree, make sure you get it in writing.
Most collection agencies are easy to deal with since all they want is your money.
Lol. It's credic. How you gonna improve your score when you don't even know the word.
its only credic when its in his momma's name. shheeesh...where u been?
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1987 Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."
they do validate, try to negotiate a "pay for delete", where you offer to give them money in exchange for deleting it off your report. If they agree, make sure you get it in writing.
Most collection agencies are easy to deal with since all they want is your money.
Wow, I didn't know you could do this. After Hurricane Katrina, a I was turned into a collection agency for a $20.00 co-pay from a doctor's office because I didn't get my mail for several months and had no clue that I owed more money. Despite the fact that I had perfect credit, I had to go through the aggravation of contacting the doctor's office and waiting for them to remove it from my report. How do you pay the credit reporting agencies directly to remove negative items from your report after they have validated it? While I didhave the option of disputing the charge, I never saw the option of paying the reporting bureau directly.
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Odds are, I will not change your views and you will not change mine. So, let's just agree to disagree. -- Dianna AKA Believer-Always-- (Not to be mistaken for the other poster with a similar screen-name)
Because collections only reflect a separate underlying debt, the collection agency line on your report should disappear after the collection is satisfied. (Though the original creditor's will not - though not all creditors report and I don't think Charter does).
That's not at all true. The collection will simply be updated to reflect that it's paid. Unless you negotiate a pay for delete with them.
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The other option is to send a certified letter to the collection agency and ask them to validate the debt (and prove their authority to collect it), or, if the collection is no longer active, they must delete the tradeline.
This is also not true. If the collection is no longer active, they are not required to delete it. They must show that there is no balance owed on it, but it can remain on your report, since it's an accurate record of your credit history.
That's not at all true. The collection will simply be updated to reflect that it's paid. Unless you negotiate a pay for delete with them.
I don't think that's completely accurate - mainly because this is a grey area. Because a collection is not a debt, when the collection and the debt tradelines remain on the report, the consumer's score is being double charged. The other way of looking at it is that the consumer never had any business with the consumer and is simply acting as the assigned of the original creditor.
In any event, I agree that a pay-for-delete approach is the best one. But I think the OP said that the debt was satisfied. In that situation, you may have to get aggressive with the collection agency and threaten to sue them under the FDCPA and FCRA for their continued reporting.
One thing to remember with credit reporting is that it is voluntary on the part of the information provider (the creditor-side of the equation). They can always choose to do something in your favor (i.e. deleting the tradeline), you just have to get them to do it.
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Originally Posted by FullMonte
This is also not true. If the collection is no longer active, they are not required to delete it. They must show that there is no balance owed on it, but it can remain on your report, since it's an accurate record of your credit history.
Yeah, that's right (that they don't have to delete simply because the debt is paid). But indeed if they cannot validate they must delete. And if they can validate and the collection is over because the debt is satisfied, that puts you back into the first scenario.
I had tradelines from debt collection agencies on my report. Two of them I had already paid. I simply demanded validation and notorized copies of the debt assignment - and demanded that they delete the collection. And that if it was still there in 60 days, I was going to sue them.
It worked on both. But I do agree that pay-for-delete is best, if there's something to pay.
I don't think that's completely accurate - mainly because this is a grey area. Because a collection is not a debt, when the collection and the debt tradelines remain on the report, the consumer's score is being double charged. The other way of looking at it is that the consumer never had any business with the consumer and is simply acting as the assigned of the original creditor.
If it's reported correctly, it's not being double charged, or reported. Let's say that you owe a $1000 debt to Chase, and you default on it. They hand it over to a collection agency in January 2012. They attempt to collect, and sell it to another collection agency in June. What should happen is:
Up to January 2012, the debt is reported by Chase with a balance of $1,000. In January, it would be reported as Charged off, with a balance of $0.
In January, the first collection agency will begin reporting it as theirs, with a balance due of $1,000. Until June, when they will report the balance due as $0.
Then, in June, the second collection agency will begin reporting it as theirs, with a balance due of $1,000.
So, in essence, throughout the entire time, you've only had one debt of $1,000 reported.
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In any event, I agree that a pay-for-delete approach is the best one. But I think the OP said that the debt was satisfied. In that situation, you may have to get aggressive with the collection agency and threaten to sue them under the FDCPA and FCRA for their continued reporting.
If the OP paid the collector, and the collector is reporting it as a paid collection, then there isn't much the OP can do...the only option would be to dispute it on his credit report, and hope they don't verify it.
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Yeah, that's right (that they don't have to delete simply because the debt is paid). But indeed if they cannot validate they must delete.
Unfortunately, that's the greyest area I've ever seen in any law. The FDCPA specifically states that if a consumer disputes a debt with a collector, the collector most cease all collection activity until they obatin proof of the debt from the original creditor and forward that proof to the consumer. It also states that if the debt is disputed with the collector, and it is disputed with the credit bureau, the collector must inform the credit bureau that the debt is disputed. (More on that in a second)
It doesn't specify anything that should or must happen if they are unable to obtain the proof. So, technically speaking, they could leave it on your report indefinitely.
Now, about the "in dispute" thing. Normally, debts that are reported as "in dispute" are not counted when it comes to credit scoring. So, another option is to demand validation with the collector. After they have received the validation request, dispute it with the credit bureau. One of three thigns will happen: It will be removed because the collector doesn't respond (or says it's not valid simply to move on), it will come back as verified, or it will come back as "in dispute." If it comes back as verified, you have them over a barrel, since that's a clear violation of the law. Either of the other options may be enough to allow the OP's loan request to go through.
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I had tradelines from debt collection agencies on my report. Two of them I had already paid. I simply demanded validation and notorized copies of the debt assignment - and demanded that they delete the collection. And that if it was still there in 60 days, I was going to sue them.
Yeah, I know a lot of people who have had luck with that. A lot of times collectors simply don't want to hassle with that kind of stuff, especially if they've already been paid. They got their money, so why bother fighting just to keep the information on someone's credit report.
Thanks Chuck. That was very helpful. I have copied your advice and will use it if I or anyone I know is faced with this issue. It was beyond frustrating that I had to fight with the doctor's office and Trans Union to take the negative item off of my credit report. Like Monty wrote, even after I paid it continued to show up. Sure wish I would have read this post then.......
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Odds are, I will not change your views and you will not change mine. So, let's just agree to disagree. -- Dianna AKA Believer-Always-- (Not to be mistaken for the other poster with a similar screen-name)
Thanks Chuck. That was very helpful. I have copied your advice and will use it if I or anyone I know is faced with this issue. It was beyond frustrating that I had to fight with the doctor's office and Trans Union to take the negative item off of my credit report. Like Monty wrote, even after I paid it continued to show up. Sure wish I would have read this post then.......
I think Monte is correct about the mechanics of this stuff - not everything I said about the mechanics is entirely accurate.
But with credit reports, there are things that you can do to improve your situation. Learn about those things (www.creditboards.com is a great place to do that) and then be aggressive and document everything that happens (send everything by certified mail).
The credit laws allow any negative item to remain for 7 years, so even if you pay an item off, it can continue to show that it was past due or in collections, even though the balance is now zero.
But the key is that they can always choose to delete it on their own, you just have to give them a reason. Some negative items (mainly "late payment" posts) can be addressed by simply writing the creditor and explaining your situation and asking that the late payment be removed (known as the "goodwill letter"). But when it comes to charge-offs and serious delinquencies with the original creditor, they're much harder and you don't really have many options.
Collections though are a different animal. And they have neither the long-term interest in the legitimacy of their tradeline (like an original creditor does) nor do they have the infrastructure (within the context of a broader, collateral business) to fight you. They buy debt at a discount - and the bigger you make their headache in dealing with you, the less money they make off of their purchase of that debt. Use this to your advantage.
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Originally Posted by FullMonte
If it's reported correctly, it's not being double charged, or reported. Let's say that you owe a $1000 debt to Chase, and you default on it. They hand it over to a collection agency in January 2012. They attempt to collect, and sell it to another collection agency in June. What should happen is:
Up to January 2012, the debt is reported by Chase with a balance of $1,000. In January, it would be reported as Charged off, with a balance of $0.
In January, the first collection agency will begin reporting it as theirs, with a balance due of $1,000. Until June, when they will report the balance due as $0.
Then, in June, the second collection agency will begin reporting it as theirs, with a balance due of $1,000.
So, in essence, throughout the entire time, you've only had one debt of $1,000 reported.
I agree that this is how it would work. But I completely disagree that the consumer isn't being suffering greater harm if the collection agency tradelines are allowed to remain on the report after the collection is satisfied.
Isn't it true that in your hypothetical, the Chase chargeoff will negatively impact the credit score for 7 years, regardless of the balance . . . and the collection agency tradelines will also negatively impact the score as long as they remain on the report - even after the collection amount is satisfied?
Yes, it's just one debt of $1,000. But the negative impact to the score is increased when that single debt has two negative tradelines . . . correct? That's my understanding at least. Are you saying that a single tradeline for the Chase chargeoff (without the collection tradelines) would have the same negative score impact as multiple tradelines (one for the Chase charge-off and then the collections lines)?
This has been a debate I've always tried to find an answer to. Some resources I've seen say that once Collection Agency A sells the debt to Collection Agency B, Agency A no longer has the right to report or collect upon the debt. Whereas, Agency B can, if the debt can be validated.
Others I've seen were the way of FullMonte's thinking.
Whether Collection Agency A has the right to report the debt, even as $0 balance, I'm not too sure about. But I would think it'd be easy to have Agency A removed, because it's a debt they no longer own and therefore can't be validated. Keep in mind, this only applies to Collection Agencies. Of course, original creditors are allowed to stay on a report 7 years and some change from the "date of first delinquency
I agree that this is how it would work. But I completely disagree that the consumer isn't being suffering greater harm if the collection agency tradelines are allowed to remain on the report after the collection is satisfied.
That could very well be the case. I'm not saying that it doesn't have a more negative effect, I'm simply saying that from a legal/real world standpoint, it's how the system is designed to work.
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Isn't it true that in your hypothetical, the Chase chargeoff will negatively impact the credit score for 7 years, regardless of the balance . . . and the collection agency tradelines will also negatively impact the score as long as they remain on the report - even after the collection amount is satisfied?
Yes, it's just one debt of $1,000. But the negative impact to the score is increased when that single debt has two negative tradelines . . . correct? That's my understanding at least.
You could be right. Unfortunately, none of us have any way of knowing how the FICO scoring system works, so we can only guess at what kind of effect any one tradeline has on it.
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Are you saying that a single tradeline for the Chase chargeoff (without the collection tradelines) would have the same negative score impact as multiple tradelines (one for the Chase charge-off and then the collections lines)?
No, I'm not saying that. What I'm saying is that the scenario I posted, with the multiple tradelines, is an accurate depiction of your credit histoy; and as such is well within the letter of the law (and the intent of the law) when it comes to credit reporting.
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