Can they do this legally? Does my dispute stand a chance?

[designated_knitter]

I had a utility bill placed for collections from July 2011 -- it is now outside the SOL for being collectible in my state (NC).  It has been hanging out on all three of my credit reports since then with the utility company listed as the original creditor.  I have had no contact or initiated ANY contact with the creditor since well before July, 2011.

So today, I get an alert that a new collection was added to my report as of 3/17/2015 from "Online Collections" in Winterville, NC.  I never received ANY communication from Online Collections -- was not given an opportunity to dispute or verify the debt.  PLUS, they are just now reporting a collections on a debt that is outside the Statute of Limitations.

BTW, this is showing up as a duplicate debt -- with both the utility company and Online collections showing a balance owed of 632.

I was going to attempt to do a PFD to get the original collection removed... however several complaints online indicate that basically Online Collections won't do PFD and even if you pay them, they refuse to provide you with a receipt to show that the debt has been paid.  

I have filed a complaint with CFPB but not very optimistic... from everything I have read, it sounds like this company takes a real "f-u" attitude towards dealing with consumers.

So can Online Collections legally due what they just did?  Or have they violated FCRA and/or FDCPA?  Suggestions on how to get this off my credit reports and make it go away?

For the record, I'm not proud of ths -- but my ex walked out on me back in 2011 so wasn't really on top of my game financially or emotionally.  I've been working hard to "get right with the credit world" but it seems like ever time I make some progress -- one of these old baddies pops up and all of a sudden, it is new again.  I would LOVE to qualify for a mortgage next year but don't feel like I can if companies keep ripping open old wounds!

Thanks in advance!

[Anonymous]

I don't see that they have done anything improper here. The Original Creditor (OC) and the Collection Agent (CA) are both allowed to report a delinquency. Yeah, I agree its not 'fair' but its allowed. One derogatory account can further turn in to three if the collector sues and gets a judgement. The only thing that is potentially improper is Online Collection not notifying you via a 'dunning' notice. It very likely that the notice may have gone to an old address. One should alway clean up old addresses in their reports to help prevent this. CA's often use your reports to try to determine an address if they did not get one from the OC.

SOL has no bearing on reporting at all. It just determines how long a creditor or collector has to sue you in court for a debt. Once that time passes, if you ARE sued you must go to court and claim the SOL defense. Its not something thats automatic. 

[designated_knitter]

Thanks for taking the time to respond -- I guess I'm SOL (**** outta Luck -- not to be confused with staute of limitations!)

I guess my question is that by reporting the collection as of 3/2015 -- haven't they effectively "reset the clock" in terms of the age of the account?  I thought they had to report the date of last activity and they are not doing that.

[Rlupo810]

Someone please correct me if I am wrong, but I thought that if the oc sold the debt to a ca that the oc is supposed to report a balance of zero as the ca is now collecting on the debt. If that is true than I would think that the oc is reporting inaccurately as the OP said they are both showing a balance.

[designated_knitter]

To muddy the waters even more, the original creditor doesn't even exist as its own entity anymore.  Progress Energy merged with Duke and is now known as Duke Energy.  So Progress Energy doesn't even exist any more...

[Anonymous]

No, thats only the date they reported it. Within 90 days of placing a collection on your report they are required to supply the CRA's a "Date of First Default" which they get from the OC. Thats the date you first went late and never caught up the account. If you pull your full free reports from annualcreditreport.com it will show either a DoFD or an estimated fall off date - "scheduled to report until mo/year"

[Anonymous]

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@Rlupo810 wrote:
Someone please correct me if I am wrong, but I thought that if the oc sold the debt to a ca that the oc is supposed to report a balance of zero as the ca is now collecting on the debt. If that is true than I would think that the oc is reporting inaccurately as the OP said they are both showing a balance.

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Thats true if the debt is SOLD. Many utilities and communication companies, for whatever reason, seldom ever sell their bad accounts.Tthey just 'farm them out' to collectors under a contract. Hospitals and medical providers usually do this as well.

[Rlupo810]

OK, thank you for clearing that up for me Norman.

[designated_knitter]

So would it be better, then to try to work with the original creditor or at least the new entity formerly known as Progress Energy in order to try to resolve this given that the Online Collections has such a terrible reputation?

[Rlupo810]

I have heard on some occasions where you can get the original creditor to pull back the debt from the ca with promise to pif.