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STATE COLLECTIONS QUESTION


americanfunding
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Has anyone ever dealt with or heard about action being taken against an outfit called State Collections based in Stoughton, Wisconsin?

I think they tend to take medical collections and they are reporting late every single month to the bureaus! I thought that was illegal?!?

It's a collection account and not a revolving account. It is a medical bill from an accident 2 years ago that is still in litigation pending resolution, but that doesn't help out right now.

Thanks in advance for your help.

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It is the misrepresentation of the character of a debt, and a violation under FDCPA. A collection account cannot be listed as open because it is a closed account which has been sent to collections. There is no specific due date. Therefore, it cannot be late, and if it cannot be late, it cannot be reported as such because this is inaccurate, and it is a violation of FCRA to report inaccurate information on a credit report.

Isn't that nice. You get injured, it creates medical bills you can't pay. You sue for payment of those bills, and to add insult to injury a CA reports your delinquency to the CB. gotta love this world.

Due to the nature of the entire situation, you can't dispute the debt, but you can dispute whether the CA has a right to collect the debt. Seems like you're going through a lot anyway, and if you plan on paying it out of the lawsuit, then, your best bet is to nicely write the CA a letter explaining that because this is a collection account it is a closed account, and there is no due date, and therefore, it cannot be late. Explain why they have not received payment, tell them that you understand it is their job to report this information, and you will accept the derogatory mark for the delinquency. However, there is no need for them to intentionally drag your credit down even more by mischaracterizing the debt as late. Explain that as soon as your lawsuit is over, you have every intention of making payment in full, as long as they conform with the laws and refrain from causing further damage to you than has already been done. Be sure to demand that they not call you and contact you only in writing. Biggest mistake is contacting a CA without doing that. First contact, and you become prey. People shouldn't be afraid to answer the phone.

I don't think this is a case where you want to threaten anyone, with the entire other suit going on, but if they don't report your information accurately, it hurts you, and you can't tolerate that. Just ask them to report it accurately without threats. Sounds like a small CA who maybe doesn't have all the details of credit reporting down. They may consider your request helpful. If they're doing it intentionally, that's another story. Give it a try, and if they don't fix it, then take further steps.

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