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Need Suggestions - Can pay OC and CA says they 'cannot remove'


baughb
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Hi all,

 

First post and I've done a bit of research on the site. Here is my situation:

 

I blanked when I moved and missed my last Comcast payment. I owe them ~$250 which is now in the hands of Stellar Collection. I contacted Stellar when I got a notice that they're reporting a collection on my credit report. I contacted them and asked for PFD, and two different reps stated "The OC specifically noted that we cannot remove this from your report" to which I called BS

 

I contacted Comcast and they were more than happy to take my $250 over the phone. I need to know what options I have to get this removed from my credit report. I was thinking that I could pay Comcast, do validation and they would show no balance with Comcast and therefor shouldn't have a legal right to be reporting.

 

Or do I get something in writing from Comcast first stating that they will make sure that Stellar Collections will not report. I'm stuck in a rock and hard spot. I spent two years bringing my credit score up from sub 500 to just over 700 and now this hit dropped it back down hard.

 

Help me CIC... you're my only hope!

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As a CA, they cannot remove OC's tradeline.

 

Yes, pay Comcast directly.  I recommend that even if you didn't have this situation.  You owe Comcast, not the CA.  Once it is paid at Comcast the account should be withdrawn from CA ... then they have no right to report.  But Comcast will have a right to report it as a debt-that-was and is now paid.  You can ask them for PFD but I've never heard of them doing it.

 

To make sure the CA does not report, be sure Comcast withdraws the account from them.

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Ok, I guess I am just a little confused...

 

Stellar is showing on my credit report, with the Creditor Name as Comcast:

 

 

 

STELLAR RECOVERY INC  Agency Address: 1845 US Highway 93 S
Kalispell, MT 599015721
(406) 755-9522

Date Reported: 09/2013 

Date Assigned: 07/2013 

Creditor Classification: Retail 

Creditor Name: COMCAST 

Account Number: 1006XXXX 

Account Owner: Individual Account. 

Original Amount Owned: $249 

Date of 1 st Delinquency: 05/2013 

Balance Date: 09/2013 

Balance Owned: $249 

Last Payment Date: N/A 

Status Date: 09/2013 

Status: D - Unpaid 

Comments: N/A

 

 

If I want this to go away completely, should I just pay Comcast and then dispute this against Stellar since they are the ones actually showing on my credit report?

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A collection account can remain on your CR.  Just because it's paid doesn't mean it will be deleted.   You can ask Comcast if they inform the CA that the account has been paid or if you should do so.  After that, the entry should reflect that the account was paid.

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I understand that it CAN remain on my account. I would prefer to not have it there :)

 

I've read other people having success stories with Stellar Collection doing Pay for Deletion. As I mentioned, they don't want to do it over the phone, but if I'm wondering if sending them a letter is a better method. It seems to be that I pay Comcast, and then they tell Stellar it's been paid... and I'm stuck with a 'paid' collection on my account, which is although not as bad, still bad on my credit report.

 

If I pay Comcast, do I send DV to Stellar and if they can't validate it.. I have grounds to have it removed?

 

Additionally, they're not Licensed in Washington, but I'm not sure if they are technically a Collection Agency or a JDB (and I haven't been able to find a firm answer as to what classifies the differences)

 

Thanks everyone so far for the quick responses!

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Once Comcast withdraws the account from the CA, then the CA should no longer have it.  Make sure they do that after you have paid them.  Once that is done, then check the CR and see if it removed.  If not, dispute it.  Since they do not have the account, they should not be able to confirm it.

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Once Comcast withdraws the account from the CA, then the CA should no longer have it.  Make sure they do that after you have paid them.  Once that is done, then check the CR and see if it removed.  If not, dispute it.  Since they do not have the account, they should not be able to confirm it.

 

I agree that the entry should be disputed, and hopefully it will be removed.  But just because the CA no longer has the account for the purpose of collection doesn't mean they don't still have copies of the documentation that allowed the to place the entry in the first place. 

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I agree that the entry should be disputed, and hopefully it will be removed.  But just because the CA no longer has the account for the purpose of collection doesn't mean they don't still have copies of the documentation that allowed the to place the entry in the first place. 

 

That would be misrepresenting the status of a debt.

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They don't have standing to place the tradeline if the account is not theirs.

 

@Torden

 

It was their's to collect at one time.  The entry is allowed to remain because it's part of the history of the account.   Verifying what they reported while they had the account is not a violation as long as what they reported was accurate.

 

What the CA cannot do is continue to update once they no longer have the account.  The statute specifically states that accounts placed for collection can remain on our reports for 7 years.  There is nothing in the FCRA that says an entry must be removed because the CA is no longer collecting it.

 

If an OC sells an account, their entry is not removed simply because they no longer own the account.  If a JDB sells the account to another JDB, the first JDB's entry can remain.  They just can't update.

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 I contacted Stellar when I got a notice that they're reporting a collection on my credit report. I contacted them and asked for PFD, and two different reps stated "The OC specifically noted that we cannot remove this from your report" to which I called BS

 

That statement is an FDCPA violation isn't it? I'm pretty sure they're misrepresenting themselves. An easy way to find out would be to call comcast and ask.

 

 

@Torden

 

It was their's to collect at one time.  The entry is allowed to remain because it's part of the history of the account.   Verifying what they reported while they had the account is not a violation as long as what they reported was accurate.

 

What the CA cannot do is continue to update once they no longer have the account.  The statute specifically states that accounts placed for collection can remain on our reports for 7 years.  There is nothing in the FCRA that says an entry must be removed because the CA is no longer collecting it.

 

If an OC sells an account, their entry is not removed simply because they no longer own the account.  If a JDB sells the account to another JDB, the first JDB's entry can remain.  They just can't update.

 

If he paid comcast, then stellar was assigned and didn't own the account no? Wouldn't that be a whole different ballgame? I've done a little bit of googling to try and narrow this down with little luck.

 

If he pays comcast, and stellar still reports a balance that would be an FCRA violation(not reporting accurately) and an FDCPA violation (misrepresenting) right? Could it really even be reported as a, "paid collection," if he didn't pay the collection company, he just paid comcast?  I'm just spitballing here.

 

Stellar is 100% a bottom feeder collection agency, and they will violate repeatedly.  Just an FYI.

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@jaspa2000

 


That statement is an FDCPA violation isn't it? I'm pretty sure they're misrepresenting themselves. An easy way to find out would be to call comcast and ask.

 

Possibly.  But it would have to be proven that the reps made that statement.

 

 


If he paid comcast, then stellar was assigned and didn't own the account no? Wouldn't that be a whole different ballgame? I've done a little bit of googling to try and narrow this down with little luck.

 

The poster didn't say that he paid Comcast before the account was assigned to Stellar.

 


If he pays comcast, and stellar still reports a balance that would be an FCRA violation(not reporting accurately) and an FDCPA violation (misrepresenting) right?

 

Someone would have to notify Stellar that account has been paid.  It would either have to be Comcast or the poster.  If Stellar still has the account and hasn't been told that it was paid, they're not responsible for what they don't know.

 

 

Could it really even be reported as a, "paid collection," if he didn't pay the collection company, he just paid comcast?

 

That's unclear.  It's possible Stellar would have to report a -0- balance. 

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Additionally, they're not Licensed in Washington, but I'm not sure if they are technically a Collection Agency or a JDB (and I haven't been able to find a firm answer as to what classifies the differences)

 

 

 

License Information:

 

Entity Name: STELLAR RECOVERY, INC. Business Name: STELLAR RECOVERY, INC. License Type: Washington State Business Entity Type: Profit Corporation UBI: 602903176     Business ID:001     Location ID:0003 Status: To check the status of this company, go to Secretary of State and Department of Revenue.
 

 

Location Address: 1327 HIGHWAY 2 WEST STE 100

KALISPELL, MT, 59901

Mailing Address: 4500 SALISBURY RD STE 105

JACKSONVILLE, FL, 32216-8035

 

 

View Additional Locations  

 

    Status Expires First Issued  

 

Licenses Held at this location         Collection Agency   Active 01/31/2014 08/04/2010
 

 

Governing People: GARRETT SCHANCK JOHN SCHANCK JR
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Additionally, they're not Licensed in Washington, but I'm not sure if they are technically a Collection Agency or a JDB (and I haven't been able to find a firm answer as to what classifies the differences)

@baughb - A collection agency is assigned to collect on a debt still held by the OC.  A Junk Debt Buyer (JDB) actually purchases the debt paper and anything they collect goes in their pocket. 

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  • 2 weeks later...

It was their's to collect at one time.  The entry is allowed to remain because it's part of the history of the account.   Verifying what they reported while they had the account is not a violation as long as what they reported was accurate.

 

If this is true, then what happens on an account that is placed for collection by the OC, at different times, with multiple CAs?  It seems that could cause a situation where a single debt could have multiple collection entries on a person's credit report; I'm pretty sure that isn't allowed (not sure what the precedent is on this, but it seems I have seen it before).

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@CG in TX

 

Again, there is nothing in the FCRA that says multiple collection entries for the same account is not allowed.  The following is from Experian.  As you can tell from the language, it's about JDBs, but it still applies.

 

Your credit report is a credit history. That history documents the life of a debt. As a result, it will show both the original lender and any subsequent collection accounts. However, they are not seen as two separate debts. Instead, a collection account is recognized as a continuation of the original debt.

The account you had with your bank should be listed as charged off. It could also show that it has been sold or transferred to a collection agency. Charged off, transferred or sold are considered a final status, essentially the same as closed. As a result, that account entry is no longer an active debt. However, it will continue to appear on your credit report to accurately reflect the account history.

The collection account now represents the active debt. Usually, a collection account indicates that it was purchased from or transferred from the original lender.

The collection agency may then sell the account to another collection agency. The first collection account then would be reported as sold or transferred, and the new, active collection account would be added to the credit history.

Because a collection account is treated as a continuation of the original debt, it will be deleted at the same time as the original account. The original account and subsequent collection accounts will be deleted seven years from the original delinquency date. The original delinquency date is the date of the first missed payment after which the account was never again current.

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There are a lot of weasal words being used here that add to the general confusion.

 

First, "assigned" has two meanings...one is a Collection agency is assigned (as in contracted by) the OC to collect a debt on their behalf;  the other is a junk debt buyer is assigned all rights and privledges (as in the debt was sold) by an OC allowing the JDB to collect money on behalf of the JDB.

 

Second, in general collection agencies DO NOT buy debts.  JDBs buy debts.

 

Therefore, an OC can "assign" (i.e., sell) a debt to a JDB who "assigns" the debt (I.e., contracts with) a collection agency to collect.

 

And, it is my understanding that a CAs TL can remain on a credit report after they have given up an returned the debt to the owner (OC or JDB) but only if they report their balance owed as $0 and noted that the account is closed...otherwise, it is misreporting the "nature of the debt".

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Well, here's a link that I can legally reference:  http://ficoforums.myfico.com/t5/forums/forumtopicprintpage/board-id/rebuildingcredit/message-id/209670/print-single-message/true/page/1 While this link is to a forum topic on the myFico web site, and the respondent doesn't actually identify themselves, I do agree the response is acccurate.

 

Note that the respondent refers to the "CDIA Manual".  CDIA stands for "Consumer Data Industry Association" and oversees the use of the "Metro 2" data reporting format used by "E-OSCAR" software that "data furnishers" used to report to the CRAs.

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  • 2 weeks later...

If I may,

 

Was the account paid? Was it actually withdrawin from the CA?

 

If not, there's a good chance that the OP can set up a settlement agreement with the CA and simply bind them witn an NDA. Then he pays, disputes, and they can't respond to the request because of the NDA.

 

Just an idea.

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