Rebuilding Your Credit

[savannah5]

Last month I received a fico score alert showing an almost 100 pt drop..from 760 to 662 because of 2 collections being reported to my credit report. Upon researching I found out that they were medical in the amounts of $43 and $52 from when my son injured himself back in May. These amounts were billed by one of the outside lab companies I think (total bills during his 3 day stay was over 10k mostly paid by insurance). Anyway, the collection agency said they would delete them if I pay which I did. They were supposed to be deleted Dec 1st as of today no alert. But, my main question is is this even legal in the first place? To report without first attempting to contact for payment. They acknowledged that they never sent a letter and they received the debt Nov 1st and reported to the bureaus Nov 6th. Thx

[RobertEG]

Yes, it's both legal and done regularly.

A debt collector is required under FDCPA 809(a) to give formal notice of their collection activity to the consumer within 5 days after any "intitial communication" with the consumer, not before.

While reporting to a CRA is not specifically mentioned in the statute as giving rise to the requirement for collection ("dunning") notice, case law has established it to be a triggering act.  If they failed to provide dunning notice within the 5 day period, they could be subject to sanction or possible legal action for the violation, but such is rarely done.  Failure to provide timely dunning notice is not, itself, basis for deletion of their prior reporting.

[madmann26]

Send them a DV immediately.

[savannah5]

I will do that right away, thanks!

[rootpooty]

with medical its very common.  thats why i always preach to everyone especially if your insurance provider is involved to make sure everyone gets paid cause once an account gets slightly past due it gets sent over to collections right away and gets reported.  it happens alot.

[savannah5]

Yay!! Score went up to 766 today. Whew, I work too hard and pay too many bills on time each month to be penalized in that manner over a debt that I wasn't even aware of. Thanks everyone!