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Two questions about collection agencies


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Hi, I'm new here. I was hoping that someone could help me out a little bit, or just point me in the right direction.


My wife and I are trying to buy a house - we're pre-approved for a mortgage and hoping to close by the end of next month.


We're both paying off loans (school, car, credit cards, etc). However, about 6 years ago (before my wife and I even started dating), I had to leave the US to return to the UK for family business. A few accounts ended up going into collections - gasp! Ever since then I have been paying off, when I can, those debts. 


Now, fast forward from 6 years ago to now, the bank ran my credit report, and obviously it's not as good as what I'd like. Though, it seems as though a couple of debts that I paid off (in one lump sum) are still reporting as "Closed", not paid off, but closed? So, I contacted the company, they gave me the name/number of the collection agency, I called them and they reported that  they sold the debt to another company. Okay, now I'm starting to get somewhere with this... Now, I call the other company, gave them my account number, nothing. I gave them my first and last name, nothing. I even gave them my social (thinking this will definitely bring it up), also, nothing... When talking with the lady, who by the way, was very nice, I asked if it had been bought by them, wouldn't it show up on their computer? She said yes, it would. Now, what should I do in this situation where the company that apparently owns the debt, but they don't have any information on it? Also, back in 2010 I did pay this debt off, because I remember them calling and me saying that I'd like to pay it off, but they have no record of it. I did run my credit check on the 3 bureaus, one of them states "Paid in full" the other two report that it's "Closed"...


Now, for my second question. I had another debt that I paid off in 2009 to a collection company, but I never received a confirmation from them stating that I had paid it off. This is also showing on my credit report - this is scheduled to be off my report in Jan '15 - so not long now. Since I have no confirmation, I decided to call the company - this is the kicker... the company is no longer in business. I did read online that the company was busted for fraud.. So I called the main company that I accidentally didn't pay off - they just said that they can't verify that it's paid or not.


I'm at a bit of a loss on this and I don't know what to do. I did call Experian about this - they helped me open disputes on these, but I'm not sure how in depth they go on these?


Thanks in advance.

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You got an answer to your second question on your other thread, but here's the deal: if the CA were reporting that you had not paid, it would not only be reporting it as closed.


Think about it logically. If you had a line of credit, that you could spend against and pay, spend against and pay, then it would stay open until either you or the source of funds closed that line (credit card, HELOC, etc.) But if you have a loan for, say, $1,000, that is a one time thing. They hand you your $1,000, eventually you pay it off, with interest, and you are done. The account is CLOSED.


That's not bad, it's not good, it's neutral. FICO scores are based on a lot of stuff that they consider proprietary. But the two biggest things that will drive your score either up or down are these: amount of currently available credit, and the percentage that you are using is the first. The second is your payment history. If you have a bunch of loans, credit cards, etc, that defaulted within the past 24 months, your score drops drastically. As the DOFD for those accounts gets further in the past, and you have accounts that you are keeping current, your score will rise.


Anything that's reporting as closed won't really matter that much, whether they report "paid as agreed" "closed" or just "closed." It's "charged off, sold." that looks bad. But, again, even that, if the CO was over a couple of years ago, doesn't matter as much.

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Perfect - I appreciate your answer. So, should I be calling these places to verify that it has been paid off? Or should I just leave them be? The reason is that my wife and I are trying to buy a house and the bank noticed one of these on my credit report. I had told them that I had called the company that has no knowledge of me even existing to them... The bank said I shouldn't be too concerned about this, but I just a little worried as I don't know to hurt getting a mortgage. They also said that if I have any documentation about these to provide them if the underwritters ask about it... Unfortunately I don't have anything on this...

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Dear Sir or Madam/To Whom It May Concern,

On [Enter Date] I requested an investigation regarding inaccurate/erroneous items on my credit file that were being reported illegally. On [Enter Date] your agency sent a letter stating that you had completed your investigation and the items were not deleted, as requested.

This is a request under FCRA 611 (a) (7) for a description of the procedure used by your agency in providing all information to the creditor associated with my earlier dispute under FCRA 611 (a) filed with on (date/identification of the dispute).

To be more specific, based on FCRA 611 (a) (2) (B), you were required to forward all of the relevant information I provided by you to the creditor for their investigation of my dispute.

Please provide me with all of the information you used for your investigation, as required by FCRA 611 (a) (7).

Please reply within 15 days or delete the negative items, as originally requested.

1. Cell Phone, Account # 123456
2. Cable Bill, Account #654321
3. Credit Card, Chargeoff, Account # 00120034

Thank you,

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