OC agrees to have collection deleted, CA doesn't

[mwally007]

Ok, so I sent a goodwill letter to my OC for a $75 medical bill in collections. I had paid $10,000+ out of pocket and this is what was left. They had my wrong address so I never got the bill... it was truly a mistake, not a purposeful or deliberate non-payment.

The OC was very nice. She told me to pay the CA (per their agreement with the CA, I could not pay the hospital). She said the credit agency would mark it as paid. I asked VERY nicely that they not do that, but instead ask for it to be deleted. She didn't really understand why (not everyone knows about credit reports), but she said that was fine and would call them.

Because this was a goodwill payment, I wasn't going to ask for anything in writing from the OC. It was a strategic choice to make it easier on them - asking for it to be in writing would have just irritated her. I also DID owe them. I WANTED to pay because it was my bill.

When I called the CA to pay, I told them the OC would be calling them to have it deleted. They said that was fine and took my account info.

So as you could guess, it now shows the collection as 'PAID'. It isn't deleted. What do you think I should do tomorrow? Call the OC? Call the collection agency? I have a copy of a voicemail from the OC calling me to confirm they told the CA to DELETE it. If I call the CA, what should I say?

Thanks a ton!

[kel]

I would just call the CA and tell them your story. I would think that if you talk to the right person they would delete. After all they have got their money and have nothing to gain by damaging your credit report unless they just want to be total a##holes. You may have to make several calls though until you find that one right person. Go for it, see what happens.

[divemedic]

Actually, you are probably stuck with the paid collection.

[thomassl]

I would contact the OC, tell them what happened and ask them for a letter stating their agreement to call to have the CA delete it. This way you can send it to the CRA's as disputed and they will have to remove it. I have a case where I have a PFD from the original creditor and the collection agency only removed it from one CRA. I have disputed it and now have about one week to see if it is removed. So you can see even with a PFD, you may have a little additional work to do!

[mwally007]

Ok, this really sucks and I want to cry.

I really thought this would be removed. I just called the CA and told them that the OC (the hospital) wanted it removed from my credit report. They basically said 'so'? FYI: The CA is a local, small company.

Then the CA lectured me about not paying and said I shouldn't have worried about it once it got on my credit report and should have dealt with it sooner.

I went off. Not smart, but I couldn't help it.

I told her as a college student (this is all true) I spent over $10,000 of money I earned on this surgery, all out of pocket. I paid every single fricken bill. The $75 was THE ONLY thing not paid because of a glitch (I moved, never got the bill). And she was acting like I was some deadbeat when I explained I needed to get this off so I could get loans for law school.

Anyways, I called the OC lady back and she was very nice but timid (she certainly isn't going to argue my case with the CA). She said called them and they said it was impossible for them to remove it. She said she'd try again though.

What should I do? File a lawsuit (I don't think I have much to go on and they're local, so they might fight it).My credit score dropped 15 points because of this when it would have likely jumped 20-30 if removed (it is my only collection and I only have one chargeoff with scores around 590).

Thanks guys

[MadinKS]

It's not impossible to remove it, a little more difficult and time-consuming, but not impossible. I had 2 CA's delete awhile back because they were paid and I was applying for a mortgage. The CA is feeding you a line. If you talk to the supervisor of the lady at OC and explain your situation (again) and ask to speak to her supervisor. Explain the lady's "promise" and her instructions to pay the CA and ,if you would have known this would be the outcome, you would've paid the OC and told the CA to pound mud. You might have better luck getting what you want. Tell them you want all of the "timid" lady's promises in writing and you want the supervisor to take care of the CA. Certainly someone at the OC has the cahonees to call the CA and tell them per THEIR promise to YOU to delete, they better delete or they won't be doing business with them again or something to that effect. Sounds like the timidness needs to be bypassed for someone with a set. Man or woman.

[kevin3344]

First things first: stay off the phone. Talking to a CA on the phone will only make you more upset and won't accomplish anything...as you've no doubt realized.

You said the OC agreed to call the CA to have it deleted...see if you can get this in writing. Tell the OC a mistake has been made and you really want to get this cleared up. If they will mail you a letter (on their letterhead) you would really appreciate it.

Then, YOU make a copy of the letter and send it to the CA CMRRR. Tell them you want it removed immediately and if they do not comply you will get the BBB and AG involved. Wait the customary 30 days and if it's not removed contact your state AG.

________

Nexium problems

Edited September 9, 2011 by kevin3344

[MadinKS]

That'll work too. I guess I'm just pissed at the whole process today and it's coming out in my posts. Sorry. You better listen to the cooler heads today.

[Big Time]

I would send an ITS via CMRRR to both the hospital and the CA along with a copy of the complaint you plan to file with the courts for breach of the oral agreement you had with the Hospital.

If it actually went to trial, it may be hard for you to really win, but that isn't the point. The point is to let both the Hospital and the CA know that they are about to have to spend money defending themselves.

If you memorialize all the conversations with specific dates, times and names of who you taked to, thier lawyers will see that they might not be able to recover those costs of defending themselves from you.

It costs them next to nothing to delete, and even less than that to not even respond if you dispute the tradeline with the CRA's a few days after you send the ITS.

[mwally007]

Ok, so I'll wait a about a week (so that the OC lady has time to call the CA and have the item removed - I might as well give that a chance).

After that I'll send a letter to both the collection agency and the hospital with the following tone/content.

(This won't be my actual letter, just an outline of it, sort of)

Dear whoever,

In February of 2007 I checked my credit report and saw an account with Alliance Collection with the original creditor being Aspirus Hospital. The account was in the amount of $75. I never heard of the account so I asked for clarification from the credit reporting companies. Consequently, I got copies of the bill from Alliance collection.

I believe I paid the bills (along with the $1,000's upon $1,000's I paid to multiple people for the same surgery), but called Alliance to see if they would remove the bill for full payment as it was in my best interest to have it removed, and $75 was more than affordable. They refused.

Because they refused I sent a letter to Aspirus on March 23rd explaining the situation and asking kindly for them to remove the amount for full payment plus interest. Nancy, from financial services called me on April 2nd and what very understanding and kind. She said she would have no problem having it removed and that I should call Alliance and pay the bill and she'd call later in the day to take care of it. I specifically asked that it not be marked as a paid collection (as many credit experts agree, can actually hurt your score, as odd as that sounds). She had absolutely no problem with that and reassured me that she would call them later in the day.

I immediately paid after the phone call and told the Alliance representative that the account should be deleted and that Aspirus would be calling them. The representative told me it was a problem and a different department would take care of it once Aspirus called.

On April 9th I noticed that the account was marked as a paid collection on my account. I immediately called Alliance and explained the situation. They told me that no one from the hospital called them to remove the account and, basically, that it wasn't their problem. I asked if they could call the creditor and she said they couldn't.

I then called Aspirus and talked to Nancy again. She told me that she called Alliance and was told it was impossible to remove. She said she would try calling again later in the day.

I have decided that if this isn't resolved I will have to file a claim in small claims court against both Aspirus for breaking our verbal agreement (to have the account removed after payment) and Alliance collection for violating the FCRA.

Please have the account removed immediately. If it is not removed, I'll see you in court you vile excuse for human beings.

WALLY

---

Ok, I need to work on the last sentence, but do you think this will work?

Wally

[divemedic]

Threatening suit here is not the way to go, IMO. It is not a realistic threat for a couple of reasons:

1 The agreement for deletion that you had is not in writing

2 The agreement you had with the hospital is not binding on the CA

3 As long as the TL is accurate, you have little legal ground to stand on.

Ordinarily, I advise people to stay off the phone, but since you have already paid them, you have little to lose by calling. Try to get a manager on the phone and see if they will work with you. It is a long shot, but paid collections are the most difficult to get rid of.

[mwally007]

Thanks for your input, the reason I'm a little worried about asking for a manager is that I believe there are only a few people that work there and I royally pissed one of them off went I put it to them about me not paying. The rep said "Maybe you should have thought about this earlier and not let it get to collections". She had NO sympathy for me paying for law school (which you normally wouldn't expect out of a big collection company, but this is local and she could live next door).

I know I shouldn't let it get to me, but I paid that damn hospital thousands and only had a $75 bill.

I didn't really I would win the suit, I was hoping the letter or even the filing of court paperwork would cause them to back down over a $75 (paid) tradeline.

[MadinKS]

The rep said "Maybe you should have thought about this earlier and not let it get to collections".

Are you talking about the hospital or the CA? If it's the CA, it's time to practice your opening statement counselor. Fight back. That comment was borderline abuse and what happened with your bill is none of her concern. It's paid and that is all she needs to know. Leave the personal attacks out of it. If it's paid, it's paid. If you piss them off, it's still paid. The worse you could do is, well, piss 'em off.

[Big Time]

That's a little bit too honest and could be used against you since you admit you were told by the CA that they couldn't delete and that the hospital only said they would "try." I'd simply keep it like:

"The hospital agreed to have this erroneus collection deleted from my credit histories once paid, but it has not been done, you have 10 days to cure."

I honstly would make this first letter the ITS with a copy of the pleading papers.

[jazmin]

So, is there nothing in the FCRA or otherwise that specifically addresses who has authority in a case like this- OC or CA? My understanding is that the OC always has the authority to tell the CA to get lost unless they actually sold the account....???