Okay here is the deal, I have this company called Paragon Way Inc on my credit report that I think bought my GE Money debt. I paid a different company that had my debt, so I'm wondering how I get this Paragon Way off my report. Should I file a dispute through freecreditreport where I found it or do I send them a letter? Any help would be great.
If you already paid this debt, I would contact GE, send them a copy of the cancelled check, and indicate that if they continue to try to collect on a debt that is no longer owed, you will sue them! I would put all of this in a letter and send it certified mail return receipt.
I would also send a dispute to the credit reporting agencies...
I would suggest reading these (copied from MarineVietVets post in the mortgage forum):
Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.
What Steps Do I Take - great for learning the repair process.
and Example letters - PFDs, GWs, DVs, etc.
Good Luck on getting this worked out!
I have a similar situation. I had a debt with the OC. A collection agency listed it on my CR. I paid the OC who accepted payment in full and I am now doing business with the OC again...
I so happen to run across a Civil Action brought against a CA who listed the debt paid; as if they collected the monies. Check out: the FTC: look up (FTC File # 992-3012), (Civil Action No 04-2041) The United States of America vs. NCO Group Inc., NCO Financial Systems, Inc, & NCO Portfolio Management Inc.
This actions brought against this CA will answer your questions. Two CA and/or OC can not both collect on the same debt owed. If you pay one, the other has no legal right to report on the CR that the debt was paid, as if they received the money. This is fraud and a violation of FCRA section 623(a) (5).
Also, look at the other Actions that the FTC has listed. You may find your OC on that list, who had commited the violation related to your issue. I believe the USA vs. NCO should help you remove the CA due to a false claim...
Personally, I always pay the OC then write the CA, letting them know the OC has accepted my payment in full; therefore you have no legal right to list this Collection on my CR. I list the case such as the one above; giving them reference to the Action, file a complaint with the FTC, give them the reference number for the complaint; quote them the ruling above and threaten to sue them in small claims court in my area. It works every time, it gets removed...
The cited case (FTC File # 992-3012), (Civil Action No 04-2041) The United States of America vs. NCO Group Inc., NCO Financial Systems, Inc, & NCO Portfolio Management Inc. dealt with the reporting of an incorrect DOFD later than the actual DOFD, in violation of FCRA 623(a)(5).
It was settled by a Consent Decree relating to reporting of DOFDs. It did not address the issue of reporting of payment of a debt by a debt collector, it dealt with reporting of an improper DOFD, which in one case was reported as a date later than the debt was actually paid to another debt collector. That cannot happen under section 623(a)(5).
The initial government complaint and/or the subsequent complaint decree entered into with the FTC was based only on impreoper reporting under FCRA 623(a)(5), which dealts only with the requirements for reporting of DOFD by a debt collector
It is incorect to state that the case addressed or held that a debt collector cannot report that a debt was paid unless it was paid to them, or that two parites cannot report satsifaction of a debt.
In fact, if the OC is paid, they must notify the debt collector, and the debt collector is required by section 623(a)(2) to promptly update their reporting on the collection to reflect payment of the debt by reporting a $0 debt balance now under their collection.