Credit card company/collection agency not honoring their pay for delete agreement ... what do I do?

[Anonymous]

      I had some financial trouble and ended up defaulting on a credit card. The debt was transferred to a collection agency. I called the original creditor to attempt to work out the payment schedule and/or settlement directly with them. Numerous agents informed me they could not discuss the debt with me and to work out anything with the collection agency.

I requested a settlement and that it be removed from my credit report. The agreement was on the collection agency's letter head and had my information, account number, the name of the credit card company and the full amount I owed and stated the following:

"Pursuant to our conversation, our client will accept a settlement is full in the amount of $XXXX on the above listed account. The following conditions must be met for this settlement to be considered valid: Payment must be received by 10/31/09. Following payment, this will be removed from your credit report."

It was signed by the account representative (who told me he was a lawyer representing the credit card company).


I mailed in payment and the check was cashed before 10/31/09. The credit card company updated my credit report to "Settled" rather than deleting it. I called them and they told me they never do that and they would not help me further. I then, mailed a letter with a copy of the agreement to all three credit bureaus. They informed me they can only update the report from what the credit card company says.


Is this against the law? I thought if I had it in writing, they would have to honor the agreement.

Please let me know if you have been in this situation and/or know how I should proceed.
Thank you!Additional Details:

As far as I know - anything can be deleted from a credit report as long as its coming from the original creditor. It all depends on how they report it to the bureaus. Also, if the CC company refused to speak with me, shouldn't they honor any agreements made with the agency they advised me to handle it with?

[DI]

This may have posted to wrong thread.

If you had an agreement to have the tradeline deleted you should file a complaint with the BBB.   If the OC and CA is reporting a tradeline, and  the agreement was with the CA, only the CA has to honor the agreement.  They can update the Universal Data Form and select delete for the CRA's to delete the tradeline. 

Also, if the account representative misrepresented himself, and is not an attorney, that is a violation of the FDCPA.

Good luck!

Message Edited by DI on 01-30-2010 02:52 PM

[Anonymous]

I realize that the agreement was made with the collection agency, however, the CC company refused to speak with me regarding the account and directed me to work with the collection agency. Plus, the agreement letter states "our client agrees ...." (our client) meaning the original creditor. Doesn't this mean they would have to honor the agreement as well?

[DI]

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@Anonymous wrote:

I realize that the agreement was made with the collection agency, however, the CC company refused to speak with me regarding the account and directed me to work with the collection agency. Plus, the agreement letter states "our client agrees ...." (our client) meaning the original creditor. Doesn't this mean they would have to honor the agreement as well?

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Yes, the OC must honor it since the CA said 'our client agrees'.

[DI]

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@Anonymous wrote:

I realize that the agreement was made with the collection agency, however, the CC company refused to speak with me regarding the account and directed me to work with the collection agency. Plus, the agreement letter states "our client agrees ...." (our client) meaning the original creditor. Doesn't this mean they would have to honor the agreement as well?

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Research the Fair Debt Collection Practices Act.  Look for any violations the CA may have made and use it in your complaint to the BBB.