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New Contributor
Posts: 71
Registered: ‎02-21-2012
0

Current Balance

I settled one of my accounts with a collection agency about 6 months ago that had $2,200.00 balance on it, which was one of many.  Currently it shows that the balance on the card is 1,527.00(which happens to be the difference from the settlement, but it shows the balance is with the original creditor BOA for some reason.  Is this something I would dispute? It shows that the account is in current ok standing, but I have the letter stating it is settled in full.  Any thoughts?

Starting Score: TU: 641 EQ: 626 EX: 641
Current Score My FIco Pulls :TU: 659 EQ: 650 EX: 657
Creditor Pulls: TU 613
Goal Score: 750s Across the Board

Started this gardening thing on 12/4/13.
New Contributor
Posts: 71
Registered: ‎02-21-2012
0

Re: Current Balance

I know it seems as a simple question but it is reporting as good standing as well now.  I received a 1099C for it but they are still showing the balance.  I don't know if it would hurt more to dispute it or leave it on there I guess is what I'm asking.

Starting Score: TU: 641 EQ: 626 EX: 641
Current Score My FIco Pulls :TU: 659 EQ: 650 EX: 657
Creditor Pulls: TU 613
Goal Score: 750s Across the Board

Started this gardening thing on 12/4/13.
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Current Balance

This is a CC, right? Does it report a CL? Are there any identifying negatives on the TL like lates, a CO reference, settled reference, etc? BTW, you don't want them to report as settled. They should be reporting $0, though.

 

Mega Contributor
Posts: 19,558
Registered: ‎03-19-2007
0

Re: Current Balance

When you "settle" a debt, the current status is one four letter word.... Paid.

It does not matter if you paid the full amount, or they accepted payment for some lesser amount.  If the agreement was that the debt was satisfied, it is Paid.

But it is NOT paid in full, it is satisfied.  They could still report a special comment entering into your credit file that the fac that the debt was settled for less than the full amount.

 

The issue is a legal one of whether the party accepted payment as satisfaction of the debt.  If they did, the OC is required to  update the account to $0 debt balance.

Concurrently, with the debt satisfied, there is no longer a debt to collect, and the debt collector must also close their collection account and update to $0 under collection.

 

If the OC has failed to update to $0, that could mean two things.  One, they have simply not yet fulfilled their reporting obligation, or two, they did not accept the debt collector's action as satisfying the debt.  In the second case, that would raise some serious legal tussles, as the debt collector is their designated agent, and agreements reached with you can be considered as having been reached with the creditor.  The creditor's beef would be with their own agent.  I doubt that any judge would rule that your agreement with the debt collector was not binding upon the principal.

 

I would send a direct dispute to the OC, asserting inaccuracy in the reporting of the current balance, enclosing a copy of your settlement agreement with the debt collector, and proof of payment.  Let the OC slug it out with their debt collector.  I dont see any legal basis for them denying satisfaction of the debt.

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