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NYSEG lawsuit

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To summarize:  


We took  NYSEG (Gas and Electric) out of my name and into my wife's name in August.  NYSEG then sent the final bill of $300 to me at an address we have not lived in since 2007!  In October NYSEG calls and says the service is going to be shut off for non payment of the final bill.  I said.."I did not get a final bill"..they said.."we sent it to your address at 000 Main St..".I said.."we moved out of that house in 2007".  They said "sorry, our error."  I then paid the $300 over the phone.


November rolls around and I get a call from Alliance One Collections.  NYSEG sent the account to them for the non-payment of $300.  I said I paid it, Alliance One says..they have not received notification of the payment.   After numerous calls to NYSEG, they said it would be updated, it just takes time.  I said If it appears on my credit report I'm going to be pissed, they promised it would not. 


December comes and the collection account shows up at EF, EQ and TU.  I am livid!!  I send Alliance One proof of the payment and numerous calls to NYSEG gets no response.  Finally a NYSEG supervisor told me to dispute it...no ****!  


I dispute it and NYSEG verifies it as correct!!!!  I'm freaking out!!!  They verify the $300 owed as valid even after having proof that it is not.


Certified letters are ignored...but finally it comes off my reports two days ago.


I am still suing NYSEG for the FCRA violation of validating the debt as valid when it was not.  What's your guys opinion, do I have a case?


This is the certified letter I just sent:



Attn: Please forward to your NYSEG Legal Department


NYSEG has violated my rights as outlined in the Fair Credit Reporting Act.

In August 2012 the NYSEG service at xxxxxxxxxx was taken out of my name and put into my wife’s name, xxxxxxxx.  NYSEG then erroneously sent the final bill(s) in the amount of $300 to xxxxxxxxxxx, an address we have not lived at since July 2007. NYSEG became aware of their error on 10/22/2012 and the $300 balance was paid over the phone.

This account was erroneously sent by NYSEG to Alliance One Collections, a collection agency contracted by NYSEG.  This collection account appeared on my credit files with all three major credit reporting agencies, Equifax, Experian and TransUnion.  This has ruined my credit rating and has caused me much embarrassment and has put all my major purchases on hold.  I wanted to refinance my house at a lower interest rate but, because of this collection, I am unable to do so. 

After numerous calls to NYSEG a NYSEG supervisor told me to dispute the account through the credit reporting agencies and it would be removed from my credit reports.  On 12/04/2012 I disputed this collection account through Equifax.

On or about 12/06/2012 NYSEG verified to Equifax that a $300 balance, that was sent to Alliance One Collections by NYSEG, was being reported correctly when in fact NYSEG knew it was a $0 balance and had proof of this.  That incorrect verification by NYSEG of this dispute is a violation of the Fair Credit Reporting Act.  The NYSEG account was paid in full on 10/22/2012 in the amount of $300.

I have tried to resolve this dispute out of court and have sent NYSEG USPS certified letters on 12/07/2012 with my demands and proof of their error.  I have received no correspondence back from NYSEG.

In a good faith effort to resolve this issue out of court I am giving NYSEG five days to send me in writing via USPS that they have contacted Supervisor Ronald Davis at Alliance One Collections, 1-866-590-6322 and have instructed him to recall this account from any and all credit reporting agencies.  I am also demanding $5000 from NYSEG for violating my rights as outlined the Fair Credit Reporting Act (FCRA). NYSEG has not followed compliance procedures as outlined in the FCRA § 607. Compliance procedures [15 U.S.C. § 1681e] and § 615. Requirements on users of consumer reports [15 U.S.C. § 1681m].  I will demand in court the maximum punitive damages allowed by law including court costs as outlined in the FCRA § 616. Civil liability for willful noncompliance [15 U.S.C. § 1681n] and § 617. Civil liability for negligent noncompliance [15 U.S.C. § 1681o].

I have attached most of the exhibits that I will use in court and will send NYSEG other documents as I receive them for discovery.


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  • 2 weeks later...

Sounds like it to me, they are reporting a debt that has been satisfied. Hopefully you have proof of payment. You can also sue the Alliance idiots under the FDCPA for attempting to collect a debt that has been paid. Errors don't count. It's like trying to tell a cop you didn't see the speed limit sign after he pulls you over for doing 90. Sue them anyway and you'll make a couple of grand. Any good consumer attorney should love this, they get legal fees and you get the fine. There may even be violations of state unfair trade practices acts or mirror statutes. See USCTrojanalum, he is a moderator on the site and he is from NY and works in the legal profession. He'll point you in the right direction.

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