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Unknown debt, validated, paid and still on CR. Now what?


Mikkies
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I'm hoping someone can help with a suggestion on how I can move forward with my situation.

 

My credit monitoring service notified me of a collection account.  I requested DV from the CA.  It was a $135 medical bill my insurance company paid and rescinded 9 months later because my employer changed policies. Dr paid them back, sent me a request for payment to the wrong address (I never received it), Dr never called and, I never received an EOB or notification from the insurance company. 

 

The CA made no attempt to collect the debt. I called the CA, got nowhere with the initial agent, spoke to a supervisor, and requested a PFD agreement. They said no and hung up. I called the next day, spoke to someone in their "legal dept" who said if I paid the bill in full by a specific date and wrote on my check "Payment in full for removal from all CRAs" they would delete it from my CR because they realize while the debt is my responsibility, I had no idea it existed.

 

I asked why they made no attempt to collect the debt prior to reporting. They said the Drs office told them they sent multiple notices and placed calls. I received neither.

 

The collection hit the CRAs on 6/10, I received validation on 6/28, they cashed my check on 7/7 and the collection is still sitting on my CR as of today.

 

Any suggestions?  My score dropped 96 points! It lists the CA rather than the Dr (I'm guessing the CA bought the debt). Is it better to deal with the CA and request removal again or roll the dice and go through the CRAs and hope the CA states the debt isn't valid and the CRAs delete?

 

Thanks!

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I called the next day, spoke to someone in their "legal dept" who said if I paid the bill in full by a specific date and wrote on my check "Payment in full for removal from all CRAs" they would delete it from my CR because they realize while the debt is my responsibility, I had no idea it existed.

 

I hate to tell you this but you likely got had by this CA.  Odds are really good you were not speaking to their "legal" department but his buddy and co-worker Bob at the next desk.  What he told you to do is called a restrictive endorsement and it isn't legally binding on them.  

 

Call their "legal" department back and ask why the account has not been deleted.  Your other option is to dispute and hope they do not respond.  The worst case scenario is you have a paid collection however, with the new law coming into effect that does not factor in paid collections or medical debt it may not matter.

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Thank you!  I had a feeling I'd been duped.  

 

Aren't there laws or standards CAs must follow with respect to reporting?  The debt was paid over a month ago and while they didn't delete as agreed, they've not marked it as paid either.

 

Yes they must report ACCURATELY.  Another option is to file a complaint with the CFPB.  I would file based on their settlement that they would delete and not accurately updating the TL to at least paid.  The CFPB is the one agency CAs tend to fear.

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