Is this legal?

[ConvexLes]

A collection agency is refusing to remove a $359 collection item from my record that I know was paid by insurance years ago. I disputed this online with Equifax, and also contacted the original creditor by phone... to confirm this bill was paid. The OC confirmed that it was indeed paid, and promised to call the Collection Agency to tell them to take it off my CR immediately.

Later the same day, the OC called me back about the $359 account to say that she had spoken with the collection agency, and had told them to remove the account from my credit report. But she also told me, that the collection agency told her that I had "several other delinquent accounts with their agency that are unpaid."... and that I had better contact the collection agency because it sounded like they were about to take action against me. Can they discuss my debts with any third party, especially while I'm in the process of disputing them?

The real story is that this collection agency is inaccurately reporting a total of 4 collection accounts on my CR, all of which I had already disputed online.

1. The $359 account mentioned above.

2. A $126 account which I paid in full in Feb. 2003 (and have the original receipt)... they are showing this one as paid, but were still reporting as delinquent as of 2006!

3. & 4. One for $67 and another for $153 - from the same creditor, both were paid by insurance in 2004, but were still showing as unpaid.

So all these accounts the collection agency was blabbing about are all being reported inaccurately.

To make matters worse, a few days later, Equifax sends me the results of my dispute: this evil collection agency has verified the $359 and $67 accounts as STILL UNPAID, they refused to correct the date I paid off the $126 account... claiming it was still delinquent as of 2006. There is no mention of the $153 account which I had also disputed, it has just 'disappeared'... I assume that it has been deleted, so why didn't they say it had been deleted?

So what is my best course of action with this evil collection agency? This process is so frustrating!!!

[razr]

You need something from the OC in writing. Then dispute with the CRAs (again in writing). At the same time, request validation from the CA.

-r

[hunterduke]

I went through the same exact thing with a med collection that was paid by insurance,

I went the route of dv, bbb complaint, disputing with cra, and even tried begging and pleading, no one would budge, and i was even called a downright liar by the CA (who i also paid) so after 2-1/2 years of this unfounded paid collection that i never even owed in the first place I finally filed a complaint with the AG, within a few months it was cleared up and the collection TL was finally deleted,

So my suggestion is File a complaint with the Attorney general.

[ConvexLes]

I appreciate the replies... it helps to know I'm not the only one who understands how frustrating this can be. Thanks... I will call the attorney general and try to talk to them about this.

[flacorps]

You should get an affidavit from whoever the CA improperly disclosed other debts to regarding the circumstances of those disclosures and the threats that were indirectly made to you. Then sue on the violation.

These are precisely the abuses that the FDCPA was designed to terminate.

[ConvexLes]

Would the affidavit need to be notarized, or, can it be just a signed statement?

Can I ask my OC for this statement by phone? I've already asked them to send me proof that this medical bill was paid by insurance?