06-26-2012 01:24 PM
Had a medical collection added to my credit report the DAY I APPLIED FOR A MORTGAGE - which left me 14 points shy of the 640 requirement on my middle score with EX. The collection company is PARAGON REVENUE GROUP and it's for a bill that has NEVER BEEN SENT TO ME. The OC, a hospital, turned me in once before and it was removed because they had the wrong address. Well I corrected the address and confirmed they had the insurance information (we have two medical insurances, so I know I don't owe $280 on this bill) and March and never heard anything until Sunday when it showed up on my EQ report dropping it from 626 to 549 and no telling what it dropped my EX to but it was 626 with the lender pull and it had no major derogs at all and today it hit TU and not sure what the drop will be but my FAKO dropped 40 points but TU with a lender pull yesterday had it at 690 - but it hit TU today. I know I'm rambling but need to vent a little because I'm so exhausted.
Anyway back to PARAGON REVENUE GROUP - I got the letter saying that they had my account in collections, I called and arranged to make a $50 payment because a lady there told me that they would not report if I made a payment and that it shouldn't report to the CRA's since it is still pending insurance reimbursement BUT it did.
I spoke with the hospital yesterday who does not understand why it's in collections but can't really do anything on their end about getting it removed because it's "just how our system works."
I don't know what direction to take and need help immediately. Please advise. I'm in contract on a house and I know that this collection account will prevent it because my scores aren't where they should be. I'm frustrated and upset and have never had thoughts of opening up a can of intellectual whoop-a$$ like I do right now - moderator please edit if that's against the rules!
Someone PLEASE HELP ME!
06-26-2012 01:33 PM - edited 06-26-2012 01:36 PM
In my opinion, your issue is with the OC, not the debt collector. The debt collector received a collection referral from the OC, who by placing it for collection was asserting it as a legitimate debt.
The ultimate basis for deletion of the collection would be that their was no legitimate debt at the time of their referral, and thus the collection is improper as a matter of fact.
However, that will take some time to address. You should prevail in the end, but that does not address your short-term need.
I would at least get a statement from the OC that the collection referral was improper. If they dont understand how it is in collection, get them to state as much.
Hopefully, your lendor will then remove the collection from their decision making.
A DV to the debt collector will ask that they obtain verification from the OC, but it wont be timely at this point, and even if it were, they would not have to respond.
Yes, you can, and i recommend that you do send a DV, but it is not going to compel any immediate resolution.
06-26-2012 01:52 PM
Do you think if I paid the debt and then disputed it with the three CRA's I'd have a change of getting it removed within 30 days? Or is that a silly solution? The hospital said they would write me a letter but how do they determine what my credit score SHOULD be if it gets removed?
06-26-2012 02:13 PM
Yes, armed with info that the OC considers the reporting to be inaccurate, you can send a direct dispute to the debt collector, compellling them to conduct a reasonable investigation, and report their findings to you. In my opinion, based on your facts, any reasonable investigation on their part would require contact with the OC before verifying the accuracy of the collection. If the OC tells them what they have told you, I dont see how they could verify the accuracy.
Inability to verify compels them to send timely deletion of the unverifiable information to each CRA to which they reported.
I strongly recommend a direct dispute, and not a dispute via the CRAs,
06-26-2012 03:02 PM
How do I do a direct dispute?
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO