12-19-2010 03:33 PM
It's been a while since I've posted anything. I started cleaning up my credit since Jan 08 but fell short last year. My score has been going up again, but soon as it increases another problem rises with it also. Here's the dilema..I had a T-mobile cell for the past 6 years. My bill is always over 100.00. I lost my job a year ago and ran into difficulty keeping up with my monthly payments. After leaving the country for an emergency in August., I came back to a 400.00 bill. I made several calls to T-mobile begging for them to work something out with me so I can pay the bill. They refused and demanded the full payment. I eventually left for Military training and no way of contacting them after they disconnected my phone. I came back home two days ago and decided to call them to get my services back on because now I can afford to pay the 400.00 only to find out my account is in collections and there's no way for them to get me back the same number. They're saying I need to pay the collections 700.00. I told them I won't do such a thing because I only owe them 400.00. They told me about the fees and agree that my bal is 579, and the if I make this payment, they can pull my account out of collections (outside collections agency). I'm really hesisitant to make such a big payment only to find out that if this gets on my credit report, they would not want to remove it. I desperately need some help and advice on what I should do. I really don't need a new collection on my report. I guess my question is, If I pay T-Mo the 579, can they really pull my account from collections? If they do, would it still go on my credit report? Will I still owe the collection's agency any money? Please help ASAP. Thanks a Mil.
12-19-2010 11:55 PM
Yes, they have the authority to "pull the collection" from the debt collector, provided they still own the debt.
But all this means, no matter what they infer to you, is that simply terminates any further collection activity status on the part of the debt collector. That is a legal, and not a credit reporting, issue.
The OC has NO authority, whatsoever, to instruct the debt collector on their legitimate credit reporting, or to require them to delete any accurate information that the debt collector has, or may choose, to report to a CRA.
From the date the OC contracted with the debt collector up to the date that their assigment of debt collection rights to them was terminted by the OC, the debt collector clearly had the legal right to report their collection activiies to the CRAs.
The FCRA does not limit what is reported by when it is reported, it limits reporting by whether or not the information reported was accurate at the time of its occurance. If a debt collector wishes to report information to a CRA, even after termination of its collection authority with the OC, that was accurate while they held such authority, I know of no provision of the FCRA that prohibits such reporting. I see no reason why a debt collector could not report a CA after an OC termination of their contract.
A debt collector undercut in its collection activities by the OC in accepting direct payment to them probably wont be a happy camper.
12-20-2010 07:21 PM
Thanks for your help Robert but OMG, I think I got lost reading your post. No offence, but can u break it down further.
12-20-2010 07:22 PM
CreditChild I hear you, so should I pay it off at once or take my own time? I was hoping if I pay it,.it won't get reported because it's not on my report as yet.
12-20-2010 09:14 PM
I will try to simplify.
When the OC closed the account, the debt was apparently, and originally, $400. But, just as with any loan, credit, or prior extension of service, your contract agreement with the OC, or your state laws for unpaid debt, usually allow interest, and in some cases, fees to continue to accrue as the debt remains unpaid. The debt at the time of collection refererral usually does not end any obligation for interest and fees due to extended non-payment.
Payment or non-payment of debt is not a credit scoring factor. From the date that the debt collector was assigned collection authority by the OC, they can report a CA to your CR. The fact that they have not yet reported is good. Payment by you may cause them not to report a CA, but in my opinion, does not preclude it.
The longer that you delay in a PIF, the higher, in my opinion, the chances become for the debt collector to step up collection pressure by then posting a CA to your credit file.
The OC is apparently now asking for a PIF to them in the amount of $579, so they are asserting some accrual of interest and/or fees due to them above the amount of the original $400 debt. I have no way of assessing this, but it may be legit.
The debt collector, in their CA account reporting, is apparently asking for an additional $121 ($700 - 579).
If you pay the OC, they may settle for the orig $400, or may want the $579. And if the CA still assserts debt owed to them due to their period of collection activities of the additional $121, legally satisfying the OC wont necessarily erase any claim the debt collector might subsequently make.
I know that this gets complex, but simple answers lead to incorrect advice.