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Collection company didn't hold up their end of the bargain

Established Member

Collection company didn't hold up their end of the bargain

Hello all,

I had a repo in January of 2013 that went into collections in January of 2015. The collection company sent me a letter saying if I paid 1/3rd ($1,200) of the debt my account would be marked as "paid- closed". They wouldn't do a PFD, so I took this offer. I paid the debt and it shows a balance change on my credit reports but they never updated the status to what we agreed upon. The status still says "open". I have all of this in writing through emails with the account manager.  Should I call the company back and see if they will live up to our agreement or should I dispute the debt on the grounds it is being reported inaccurately?

 

Message 1 of 5
4 REPLIES
Moderator

Re: Collection company didn't hold up their end of the bargain


ASCENDANT wrote:

Hello all,

I had a repo in January of 2013 that went into collections in January of 2015. The collection company sent me a letter saying if I paid 1/3rd ($1,200) of the debt my account would be marked as "paid- closed". They wouldn't do a PFD, so I took this offer. I paid the debt and it shows a balance change on my credit reports but they never updated the status to what we agreed upon. The status still says "open". I have all of this in writing through emails with the account manager.  Should I call the company back and see if they will live up to our agreement or should I dispute the debt on the grounds it is being reported inaccurately?

 


If the balance is 0 that open doesnt matter as everyone can see its closed. If its been awhile since its updated it will cause a Fico score drop if you dispute it to say closed. What I would do is see if they will do a GW removal of the whole TL with a GW letter.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
Message 2 of 5
Established Member

Re: Collection company didn't hold up their end of the bargain

It shows my balance as $2,700. That's the part that concerns me. According to our email conversation the account would close and I wouldn't owe them anything after I paid the agreed amount. And he stated it wouldn't show as settled, it would show as paid. This notation they have now with the remaining balance makes it seem like I still owe them money.  Thanks for the speedy response.

Message 3 of 5
Valued Member

Re: Collection company didn't hold up their end of the bargain

How long ago did you make the payment? It usually takes 2 reporting cycles to report accurately. The first cycle will only show the updated balance with the payment being made. The second cycle will show the final. I just went through the same thing with 5 collections. In some cases I was able to call and have them expedite the reporting.

Message 4 of 5
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Moderator

Re: Collection company didn't hold up their end of the bargain


Maximus5403 wrote:

How long ago did you make the payment? It usually takes 2 reporting cycles to report accurately. The first cycle will only show the updated balance with the payment being made. The second cycle will show the final. I just went through the same thing with 5 collections. In some cases I was able to call and have them expedite the reporting.


Agreed on the 2 cycles of reporting. OP if its past that I would call them and remind them that a settled account for less must be updated to a 0 balance. I would expect them to note that it was settled for less than full balance and I would not worry about that.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
Message 5 of 5