Allied Collection-Sprint

[EAJuggalo]

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?

[RobertEG]

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.

[EAJuggalo]

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.

[ptkdude]

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.

[RobertEG]

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.

[EAJuggalo]

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.

[Anonymous]

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@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.

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

[EAJuggalo]

And now Allied has updated the account to paid in full, was a collection.  I'm starting a CFPB complaint now and will call both Sprint and Allied tomorrow to find out what is going on.

[Anonymous]

I think it would be better if you can get something in writing from Sprint acknowledging that the balance owed was not a delinquent debt and they had request collection to remove it to speed up the dispute process with the CRA.  

[EAJuggalo]

Allied responded to my CFPB complaint by saying that I didn't have any agreement with them or sprint to delete the tradeline and Sprint never recalled the collection.  Only informed them that it was paid.  They also claimed they notified the CRA's that it was paid in Oct.  As of right now the only one that has updated to say paid is TU, where I disputed the collection again a week ago.  Just got off the phone with Sprint, again.  They gave me a case number and told me on a recorded line they are going to call the CA and have them delete since it was Sprint's fault and never should have gone to collections.  I'll believe it when they actually do it.