Sign in to follow this  
myscoresawful

CA responds to dispute by adding the same collection as a duplicate, with a balance

Recommended Posts

Ok, so I had a cable bill collection on all three of my reports.  I paid the cable company and the CA updated it as paid (don't judge, I had no communication with them at all, not even a letter from them).

 

I gave it a few months and disputed the paid collection with TU and in response to the dispute, the CA added the same collection to all three bureaus as a new collection (separate from the one that has been paid for months), and this time it shows unpaid and the amount due.  The date assigned, amount, etc are all different.

 

What is the best way for me to handle this? I would like to take advantage of the situation to make them remove BOTH collections, the paid one and this new one from all 3 of my reports.

 

Any advice would be greatly appreciated. Thanks!

Share this post


Link to post
Share on other sites

I guess it depends on which way you want to roll:

 

Are you wanting tradeline deletion or do you want to get the ball rolling for a lawsuit that could involve $$$ + tradeline deletion?

 

It is my understanding, if you paid the OC directly, the CA is not allowed to continue to report the collection.

 

There is a letter you can send to the scum sucking CA stating- I have paid this with the OC, provide them with proof of payment and tell them to delete it now or face the consequences.

 

If you are game, you probably have some ammo for FDCPA violations on the federal and possibly state level. I didn't notice what state you are. If they have now added a 2nd collection for the same item and changed things around and you could look into going after them for the violations and end up with a tradeline deletion.

 

 

 

 

Share this post


Link to post
Share on other sites

@myscoresawful

 

Dispute the new entries with the credit reporting agencies.   In order to have a right to sue, you must first dispute entries with the CRAs.

 

If the entries come back verified, you can either then dispute directly with the CA or get an attorney.  Personally, I would then send a letter to the CRAs stating that the debt was paid and that they had previously updated their other entry to show that it was paid.  If they refuse to cooperate, then get an attorney. 

 

Under the FCRA, the only way you can get statutory damages is if you can prove the CA willfully disobeyed the statute.  If you can only prove negligence, then you have to show actual damages.

Share this post


Link to post
Share on other sites

We have a good NACCA attorney on here from your sate. I think he uses Tennconusmerlawyer or attorney. Look him up and PM him for advice. He might be able to help you and him make a little money and delete your TL.

Share this post


Link to post
Share on other sites

I guess it depends on which way you want to roll:

 

Are you wanting tradeline deletion or do you want to get the ball rolling for a lawsuit that could involve $$$ + tradeline deletion?

 

It is my understanding, if you paid the OC directly, the CA is not allowed to continue to report the collection.

 

There is a letter you can send to the scum sucking CA stating- I have paid this with the OC, provide them with proof of payment and tell them to delete it now or face the consequences.

 

If you are game, you probably have some ammo for FDCPA violations on the federal and possibly state level. I didn't notice what state you are. If they have now added a 2nd collection for the same item and changed things around and you could look into going after them for the violations and end up with a tradeline deletion.

No, they only have to update it to show paid unless it was paid to the OC before the CA took it over.  thanks though.

 

@myscoresawful

 

Dispute the new entries with the credit reporting agencies.   In order to have a right to sue, you must first dispute entries with the CRAs.

 

If the entries come back verified, you can either then dispute directly with the CA or get an attorney.  Personally, I would then send a letter to the CRAs stating that the debt was paid and that they had previously updated their other entry to show that it was paid.  If they refuse to cooperate, then get an attorney. 

 

Under the FCRA, the only way you can get statutory damages is if you can prove the CA willfully disobeyed the statute.  If you can only prove negligence, then you have to show actual damages.

Am I not already there with at least their first entry?  I disputed it (with TU), and their response was nothing more than re-adding it with enough differences to make it a new and separate collection entirely.

 

We have a good NACCA attorney on here from your sate. I think he uses Tennconusmerlawyer or attorney. Look him up and PM him for advice. He might be able to help you and him make a little money and delete your TL.

Thanks for all of the information, TomnTex.  I guess I should update my profile because I have moved to TX since first joining this site years ago :)

Share this post


Link to post
Share on other sites

@myscoresawful

 

 

Am I not already there with at least their first entry?  I disputed it (with TU), and their response was nothing more than re-adding it with enough differences to make it a new and separate collection entirely.

 

 

Let me make sure that I'm understanding correctly.  You have 2 entries on your CR from the same CA.  One shows the account as paid and the new one shows it as unpaid.   Correct?

Share this post


Link to post
Share on other sites

@myscoresawful

 

 

 

Let me make sure that I'm understanding correctly.  You have 2 entries on your CR from the same CA.  One shows the account as paid and the new one shows it as unpaid.   Correct?

 

That's correct.  I paid the OC directly, who accepted the payment made out to them.  This CA had already entered it as a collection on all 3 CRAs, but there had never been any contact between us, I never received a letter or anything from them at any time, and after I paid the OC, they just marked it as paid, was in collection.  

I disputed the collection with TU stating that I had paid the OC and when they finished the investigation, their results summary simply showed "New Information" as the outcome.  Of course the new information was the same collection entered as a new collection showing a different amount (about $100 less than the first one, but still over $100), a different assignment date, and apparently a different account number because one of them shows an account number and the other one is just all 'x's.

 

So now I have this same debt listed twice in collections on all 3 bureaus and it has been paid nearly a year.

Share this post


Link to post
Share on other sites

That's correct.  I paid the OC directly, who accepted the payment made out to them.  This CA had already entered it as a collection on all 3 CRAs, but there had never been any contact between us, I never received a letter or anything from them at any time, and after I paid the OC, they just marked it as paid, was in collection.  

I disputed the collection with TU stating that I had paid the OC and when they finished the investigation, their results summary simply showed "New Information" as the outcome.  Of course the new information was the same collection entered as a new collection showing a different amount (about $100 less than the first one, but still over $100), a different assignment date, and apparently a different account number because one of them shows an account number and the other one is just all 'x's.

 

So now I have this same debt listed twice in collections on all 3 bureaus and it has been paid nearly a year.

 

Even though you paid the OC that does not automatically mean that the CA has to delete.  Many contracts that creditors have with CAs now are contingency contracts that means the CA only gets paid when they collect.  So based on that there is a clause in there that states ANY payment the OC receives must be turned over to the CA if the account has been placed with them. That means the trade line is updated to a paid collection.  You cannot force the OC to violate their contingency contract by paying them directly.  

 

The second trade line is NOT allowed and they are simply poisoning your credit report.  I would sent and ITS letter to the CA that if they do not remove the duplicate trade line immediately and continue reporting a paid account as a new delinquent one that it will be settled in court.  I would also file a complaint with the CFPB.  While the first trade line is being handled correctly the second one is definitely a violation of the law.

Share this post


Link to post
Share on other sites

@myscoresawful

 

I believe that you already have a violation of the FDCPA with that 2nd entry.  1692e(2) and 1692e(8). 

 

If you want to have a private right of action under the FCRA, you'd have to dispute the entry with the CRAs because it's a new and separate entry.   If it's verified and not deleted, you'd probably have to dispute it directly with the CA.  Considering their mistake, they'd probably remove it, so disputing for the purpose of an FCRA lawsuit might be waste of time.   I'd just dispute it with the CRAs to see what happens and so that the disputed is noted.

 

Considering that you already have an FDCPA violation, I'd do as @Clydesmom suggested.  If they refuse to cooperate, get an attorney.

Share this post


Link to post
Share on other sites

Even though you paid the OC that does not automatically mean that the CA has to delete.  Many contracts that creditors have with CAs now are contingency contracts that means the CA only gets paid when they collect.  So based on that there is a clause in there that states ANY payment the OC receives must be turned over to the CA if the account has been placed with them. That means the trade line is updated to a paid collection.  You cannot force the OC to violate their contingency contract by paying them directly.  

 

The second trade line is NOT allowed and they are simply poisoning your credit report.  I would sent and ITS letter to the CA that if they do not remove the duplicate trade line immediately and continue reporting a paid account as a new delinquent one that it will be settled in court.  I would also file a complaint with the CFPB.  While the first trade line is being handled correctly the second one is definitely a violation of the law.

 

I understand that. I made no false dispute though, I did pay the OC and since I had never been notified in any way from the CA, was not informed of their intentions reporting it to the 3 CRAs.  If they had only 'verified' the debt, I would have left things alone.  Now that they have gone out of their way to break the rules and hurt my credit even more, I want to take action.  I know they MUST remove the duplicate, but I had hoped I would be able to use this to get BOTH of them removed.  In other words, I am not out for any money from the CA for violations, but if in fact this is a violation (and I believe it is), then I would be happy to accept deletion of both entries, if I have anything coming.

 

They had to physically go out of their way to report something as a new collection, with different information and especially as 'unpaid' when responding to a dispute that simply stated that I had paid the OC.

Share this post


Link to post
Share on other sites

((What I'm saying is that I stated I had paid the OC, their response was an unpaid collection.  So that is a violation, right? I mean, forget that it is a new entry.  Their response to a dispute that I had paid this to the OC, is reporting the debt as unpaid))???

Share this post


Link to post
Share on other sites

@myscoresawful

 

I believe that you already have a violation of the FDCPA with that 2nd entry.  1692e(2) and 1692e(8). 

 

If you want to have a private right of action under the FCRA, you'd have to dispute the entry with the CRAs because it's a new and separate entry.   If it's verified and not deleted, you'd probably have to dispute it directly with the CA.  Considering their mistake, they'd probably remove it, so disputing for the purpose of an FCRA lawsuit might be waste of time.   I'd just dispute it with the CRAs to see what happens and so that the disputed is noted.

 

Considering that you already have an FDCPA violation, I'd do as @Clydesmom suggested.  If they refuse to cooperate, get an attorney.

 

I agree with you both.  I have already started putting together my complaint for  the CFPB.  I have also noticed there are over 300 complaints with the BBB for this CA, and it looks like most of them were resolved satisfactory to the person filling the complaint, so would it hurt to file complaints with both?

Share this post


Link to post
Share on other sites

@myscoresawful

 

1692e(2)(A) and 1692e(8):

(2) The false representation of—

(A) the character, amount, or legal status of any debt;


(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

Share this post


Link to post
Share on other sites

I did pay the OC and since I had never been notified in any way from the CA, was not informed of their intentions reporting it to the 3 CRAs. 

 

There is no requirement in state or federal law that they notify you at all before reporting so that is not an issue.  They are only required to report accurately and that second trade line is not even close.

 

I agree with you both.  I have already started putting together my complaint for  the CFPB.  I have also noticed there are over 300 complaints with the BBB for this CA, and it looks like most of them were resolved satisfactory to the person filling the complaint, so would it hurt to file complaints with both?

 

It can't hurt to file both.

Share this post


Link to post
Share on other sites

@myscoresawful

 

For a TX consumer lawyer, there are many good ones in TX.   Jerry Jarzombek is  excellent.  Handles cases statewide, but he is quite busy.  You can google his website.

 

Also, TX has tough state consumer protection laws, sometimes even stronger that federal law,

Share this post


Link to post
Share on other sites

I agree with you both.  I have already started putting together my complaint for  the CFPB.  I have also noticed there are over 300 complaints with the BBB for this CA, and it looks like most of them were resolved satisfactory to the person filling the complaint, so would it hurt to file complaints with both?

 

I have posted this in the past.  Sometimes, complaining to the BBB about a CA can be VERY effective.

Share this post


Link to post
Share on other sites

@myscoresawful

 

TX Law about credit reporting:

 

Texas Fair Debt Collection Practices Act § 392.202. CORRECTION OF THIRD-PARTY DEBT COLLECTOR’S OR CREDIT BUREAU’S FILES.

(a) An individual who disputes the accuracy of an item that is in a third-party debt collector’s or credit bureau’s file on the individual and that relates to a debt being collected by the third-party debt collector may notify in writing the third-party debt collector of the inaccuracy. The third-party debt collector shall make a written record of the dispute. If the third-party debt collector does not report information related to the dispute to a credit bureau, the third-party debt collector shall cease collection efforts until an investigation of the dispute described by Subsections (
B)
-(e) determines the accurate amount of the debt, if any. If the third-party debt collector reports information related to the dispute to a credit bureau, the reporting third-party debt collector shall initiate an investigation of the dispute described by Subsections (
B)
-(e) and shall cease collection efforts until the investigation determines the accurate amount of the debt, if any. This section does not affect the appcation of Chapter 20, Business & Commerce Code, to a third-party debt collector subject to that chapter.

(
B)
Not later than the 30th day after the date a notice of inaccuracy is received, a third-party debt collector who initiates an investigation shall send a written statement to the individual:

(1) denying the inaccuracy;

(2) admitting the inaccuracy; or

(3) stating that the third-party debt collector has not had sufficient time to complete an investigation of the inaccuracy.

© If the third-party debt collector admits that the item is inaccurate under Subsection ( B), the third-party debt collector shall:

(1) not later than the fifth business day after the date of the admission, correct the item in the relevant file; and

(2) immediately cease collection efforts related to the portion of the debt that was found to be inaccurate and on correction of the item send, to each person who has previously received a report from the third-party debt collector containing the inaccurate information, notice of the inaccuracy and a copy of an accurate report.

(d) If the third-party debt collector states that there has not been sufficient time to complete an investigation, the third-party debt collector shall immediately:

(1) change the item in the relevant file as requested by the individual;

(2) send to each person who previously received the report containing the information a notice that is equivalent to a notice under Subsection © and a copy of the changed report; and

(3) cease collection efforts.

(e) On completion by the third-party debt collector of the investigation, the third-party debt collector shall inform the individual of the determination of whether the item is accurate or inaccurate. If the third-party debt collector determines that the information was accurate, the third-party debt collector may again report that information and resume collection efforts.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2003, 78th Leg., ch. 851, § 1, eff. Sept. 1, 2003.

Share this post


Link to post
Share on other sites

Thanks every one of you!  I appreciate all of the advice, links, and information posted.  I'm filing complaints with both and will update as soon as anything happens!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this