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Allied Collection-Sprint

Established Contributor

Allied Collection-Sprint

Had a fight with Sprint where I canceled service, they didn't, kept charging me but never sent a bill to my new address.  Ended up with a collection on my report from Allied Collection.  Finally got things straightened out with Sprint, paid them off directly.  Now it's been almost a month and Allied is still sitting on my report as an open collection.  Now it seems to me that since Sprint admitted it was their fault this should be deleted, but what is my next course of action if Allied only changes it to closed/paid rather than deletes it?  And at what point should I start getting upset it hasn't been updated?

EX610 TU 602 EQ 592d thanks to a BS collection
Cap1 QS-$4,500 Chase Freedom Visa- $800 Chase Freedom Unlimited- $500 Victoria's Secret- $1150 Citi DC- $800 Amazon Store Card- $3,500 AMEX Hilton Honors-$1,000 Discover It-$1,000 Wal-Mart MC $1020 Chase Sapphire Preferred-$5,000
Auto Loan Opened 2-5-16 $1786/$5500
Message 1 of 7
6 REPLIES
Community Leader
Epic Contributor

Re: Allied Collection-Sprint

When you say you paid them off directly, that implies there was an actual delinquent debt.

The issue as to whether a collection is proper depends upon whether there was a legitimate, delinquent debt at the time the creditor assigned collection authority.  If the debt is ultimately settled but was delinquent when assigned, the collection is proper.

 

The issue would then be whether the collection has been updated to show paid as opposed to deletion of the collection.

Message 2 of 7
Established Contributor

Re: Allied Collection-Sprint

There was a debt.  But not a delinquent debt.  I tried three times to cancel service and asked for a final bill to be mailed to the address given to them.  After the collection appeared on my report I contacted Sprint again and they acknowledged that there was no delinquent debt, only a debt to be paid, which I did.

EX610 TU 602 EQ 592d thanks to a BS collection
Cap1 QS-$4,500 Chase Freedom Visa- $800 Chase Freedom Unlimited- $500 Victoria's Secret- $1150 Citi DC- $800 Amazon Store Card- $3,500 AMEX Hilton Honors-$1,000 Discover It-$1,000 Wal-Mart MC $1020 Chase Sapphire Preferred-$5,000
Auto Loan Opened 2-5-16 $1786/$5500
Message 3 of 7
Contributor

Re: Allied Collection-Sprint

Sprint needs to recall the debt from the collection agency.  Call Sprint and talk to a supervisor in collections.  They should be able to do that fairly easily.

Message 4 of 7
Community Leader
Epic Contributor

Re: Allied Collection-Sprint

If the creditor is acknowledging that there was never a delinquent debt, then there is no basis for a debt collector to initiate a collection, and thus to report to a CRA.  By definition, a debt collector only applies to a delinquent debt incurred under another.

 

You have three options.

The first option is to treat the statement of the creditor as factual, and thus the reporting of any collection as a clear violation of the FDCPA.

That becomes administratively reviewable by way of complaint to the CFPB.

However, while the CFPB may conduct an investigation by sending an inquiry to the debt collector, if the debt collector does not delete, then the CFPB is not likely to bring civil action on your behalf to force compliance.

 

The second option is to bring civil action against the creditor for improper assignment of collection authority.  Since the creditor has not reported, however, there is no violation on their part of the FCRA.

 

The third option is to bring civil action against the debt collector for their credit reporting of inaccurate information.

However, you must first file a dispute under FCRA 611(a) and obtain an investigation and response from the debt collector back to the CRA before you can then bring civil action against the debt collector.  See FCRA 623(c).

 

I would advise first filing a dispute asserting inaccurate reporting of a collection by the debt collector, with the statement by the creditor of no delinquency as the supporting basis.  If the debt collector verifies the accuracy after their required investigation and response back to the CRA, that then opens the door for your ability to pursue by way of civil action contesting the reasonableness of their investigation of your dispute.

Message 5 of 7
Established Contributor

Re: Allied Collection-Sprint

Talked to Sprint and the CA tonight.  Sprint verified that they recalled the debt on Oct. 14 and nothing else is owed on the account.  Allied tried to give me the run around about it taking 60-90 days for them to delete but would fill out a request to have it done sooner.  We'll see what happens now.

EX610 TU 602 EQ 592d thanks to a BS collection
Cap1 QS-$4,500 Chase Freedom Visa- $800 Chase Freedom Unlimited- $500 Victoria's Secret- $1150 Citi DC- $800 Amazon Store Card- $3,500 AMEX Hilton Honors-$1,000 Discover It-$1,000 Wal-Mart MC $1020 Chase Sapphire Preferred-$5,000
Auto Loan Opened 2-5-16 $1786/$5500
Message 6 of 7
Highlighted
Valued Contributor

Re: Allied Collection-Sprint


EAJuggalo wrote:

Talked to Sprint and the CA tonight.  Sprint verified that they recalled the debt on Oct. 14 and nothing else is owed on the account.  Allied tried to give me the run around about it taking 60-90 days for them to delete but would fill out a request to have it done sooner.  We'll see what happens now.


Well it looks like you've gained some ground, now it's a waiting game. I wish the best for you. Dv


     $500         $1,000        $1,300        $1,500        $1,850         $3,400        $3,500                            $9,500        $1,000
Message 7 of 7