Does Paying Collection Account Verify Debt?

[Anonymous]

After some tough times due to medical issue, I have completely paid off all of my collections accounts or, alternatively, had them removed from my credit report due to their being way outside the SOL.

Over the last couple of months, I have been reading these boards and have tried disputing many of these old accounts with the CRAs.  About 4 of the 10 were deleted through that process and RJM just agreed to delete the tradeline.  I still have the following tradelines on my credit reports - they report that it was a collection and the debt was paid:

Portfolio Recovery (who continues to verify the debt even when I challenge);

LVNV Funding (who I have been trying to send GW letters to);

Bank of America (paid collection, I was an authorized user);

NH/Northeast Credit Services (for a $123 medical bill from 5 years ago that I paid off); and

First Bank of Delaware/Continental.

I have sent GW to them allm, disputed them with the CRAs (none but Portfolio has validated the debt yet but there's still another 2 weeks wait).

My questions is - to the extent that they do not delete, does my payment of the debt verify it?  Am I just out of luck since I paid all of these past due accounts?  Is there anything else I can do?

[pizzadude]

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@Anonymous wrote:

After some tough times due to medical issue, I have completely paid off all of my collections accounts or, alternatively, had them removed from my credit report due to their being way outside the SOL.

Over the last couple of months, I have been reading these boards and have tried disputing many of these old accounts with the CRAs.  About 4 of the 10 were deleted through that process and RJM just agreed to delete the tradeline.  I still have the following tradelines on my credit reports - they report that it was a collection and the debt was paid:

Portfolio Recovery (who continues to verify the debt even when I challenge);

LVNV Funding (who I have been trying to send GW letters to);

Bank of America (paid collection, I was an authorized user);

NH/Northeast Credit Services (for a $123 medical bill from 5 years ago that I paid off); and

First Bank of Delaware/Continental.

I have sent GW to them allm, disputed them with the CRAs (none but Portfolio has validated the debt yet but there's still another 2 weeks wait).

My questions is - to the extent that they do not delete, does my payment of the debt verify it?  Am I just out of luck since I paid all of these past due accounts?  Is there anything else I can do?

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If you are asking if you can DV an account that you have already paid, I would say that you are probably past that point already.   However you can certainly keep trying GWs to the CAs/creditors to get them to delete....

[RobertEG]

If you pay and then raise issues over the validity of the debt, either by way of dispute under the FCRA, or in court, you are not prohited from arguing lack of validiaty of the debt based simply on payment, but it is a factor that the other side is sure to raise as an inference of its legitimacy.  How much weight is given to such an argument would depend upon the judge and the facts of the case, but certainly wont help.

[aot2009]

That would pose for an interesting law suit. I paid them in full but I swear I owe them nothing...

[Anonymous]

Ok so say I take this approach - which is actually the truth...

When I was applying to grad school, I needed to clean up my credit report a bit so I could get students loans.  I paid quite a few off without having them validated because I was forced to act fast.  Now, I am trying to clean up my scores.  I have disputed many online and had great success.  With some of the tougher ones (such as PRA and LVNV), I sent them correspondence similar to this:

Good morning,

I am inquiring about account number XXXXXXXXXXXXX.  At your earliest convenience, please send me a copy of:

1.  The original bill from the original creditor showing and/or itemizing the amounts allegedly owed;

2.  The sale or transfer agreement showing that ________purchased the debt and was the rightful owner of the debt during the period it attempted to collect same; and

3.  Any servicing or account history notes in your possession from either the original debtor or portfolio recovery.

If you are unable or unwilling to provide this documentation to my attention, please remove the account's tradeline at your earliest convenience.

Thank you.

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I have disputed the accounts and they continue to verify.  If they can't provide me with this documentation (or any documentation), I think there are grounds to still challenge their inability to validate or verify the debt.

Thoughts?

[aot2009]

Under what position do they have to comply to such request? It's satisfied in full.  My guess is if you send them enough letters they might get tired of you.

[Anonymous]

Technically, I'm not sure that they are under any obligation.

However, if they continue to verify, what are they basing their verification on?  Is the fact that the account was paid in full enough to constitution valid verification?  If not, can't I go to the BBB or the CRAs, attach my emails and say that there has been no response.  If they're verifying, they should have grounds upon which they predicate their validation, right?

[dodgeball]

If they didn't provide a duning notice paid or unpaid sick the bbb on them. With this your not arguing about really if the debt is yours or not but more to the fact that the process was not followed correctly.