Experts...just got a collection-no wait-its an active account (??) Score down 66 points!

[beautybrainsbooty]

Hi yall!

I've been doing so well within the forums for the last year, had my score up to 755 until today. I get an alert...theres a company showing an ACTIVE account with a payment history of 120 days past due, the balance is showing 17K. I looked this company up and low and behold its obviously a shady collection agency. I am soooo pissed off because I have no idea what this is, who this is and so I am preparing to do a DV letter. However, the credit report doesn't show the full account number only a partial-I'm hoping that wont affect anything and also seriously trying not to call them and cuss them out. My score took a massive hit of 66 points lost. I need the experts here. It's not reporting as a collection, but as an account sitting next to my beautiful, flawless accounts. Any advice on verbiage for the DV letter and should I dispute directly the CRAs now or wait for the no good company to *not* validate. Also, I do have a fraud alert on my account  that I've had for years-so this could possibly be something from back in the day when someone tried to be me   *does this all make sense???

Help, advice, sample letters, verbiage etc are appreciated! I am posting this in two places because I am not certain exactly where to put this. THANKS SO MUCH in advance

[llecs]

@ $17k, I would proceed cautiously. I'd pull all 3 reports directly from the CRAs or annualcreditreport.com. That'll show the full contact info for this CA and will also show the OC. I would then call the OC to try to get more info. I would also check the DOFD on the report to make sure I was out of SOL just in case, by the offchance, it was legit. If I was satisfied the debt is not mine, and whether out of SOL or not, I would send a DV to the CA. And if I had issues with ID theft in the past, I would recontact the police contact  I had dealt with before and maybe they can amend the police report or issue a new one for the $17k.

If indeed the debt was mine after gathering info, I would personally not send a DV if the debt was still inside SOL. I'd wait it out. If mine and am outside the SOL, then I'd send a DV. If they verified and I agreed it was mine, then I'd send a PFD.

[beautybrainsbooty]

Thank you! It did hit my TU report as well. I am flabbergasted by the huge amount of this "debt" and only the small amount of information I can get. I will follow your advice. This is a doozy and looks absolutely terrible on my report. I was just about to apply for an auto lease for Christmas, hopefully this is taken care of before then. Thanks again!!!

[guiness56]

You can fill out an FTC Fraud Affidavit and file a police report then send both of those to the CRAs and tell them to block the account.  You do not need to prove it is fraud and they have to block the account.

Also send the reports to the CA and ask for any and all documents pertaining to the debt.

[beautybrainsbooty]

Oh my goodness guiness56 thank you! I am sitting here practically in tears. Everything is at end of business hours today, but I am on it first thing in the morning. This forum is priceless. Thank you so much!!! I will DEFINITELY update...

[RobertEG]

+1

Congress sometimes does things right!

The whole concept behind the identity theft process is the recognition that a cohsumer is in a real catch-22 when accounts they never authorized pop up on their credit reports.  Hard to prove a negative.

Disiputes wont usually result in removal, as the furnisher only has to verfity that they have conducted a reasonable investitagation, and find the reporting to be accurate.

They are nor required to provide supporting documentation or "prove" the legitimacy.

The same with debt verification in response to a DV.  They must state that they have investigated and find basis for the debt.

The identity theft process relies only a a consumer's sworn statement before a law enforcement agency that they never authorized the account/transactions, which carries crminal penalties for any knowingly false statements, as sufficient basis fo at least get the information blocked from their credit report without need for "proofs."

Of course, continuiing to pursue the accuracy of the alleged debt is important, as until the factual issue is resolved, you still have someone out there asserting an unpaid delinquent debt.  However, in the interim, you at least get the info removed from its negative effect in credit reporting/scoring.

To assitionally assist the consumer in pursuing the identity theft issue, congress also included the right to send a copy of the police/identity theft report to the creditor, and demand all business records in their possessiono related to the alleged account/transactions, and to also send a copy to any debt collector, and receive all information they would normally be entitled to if they had disputed the accuracy of the information.  Turning the tables on them.....

If they verify either a dispute or DV request without adequate basis, they subject themselves to a finding of possible willful violation of the FDCPA/FCRA if the facts in any subsequent civil action show as such, so it is unwise to a furnisher or debt collector to verify without adequate supporting basis.  But if they chosse to do so, that pretty much ends the dispute/DV processes.

[beautybrainsbooty]

This is such wonderful news!! Do you know how crazy it sounds to tell a creditor ummmmm, I don't know what youre talking about? I am so glad that there are now procedures in place for the little guys. I suffered through about 5 years of "nope, I'm sorry somebody stole my identity"  and cleaning up and doing the necessary legwork to get into high credit lines, pay my bills in full and on time to get to the 750-760 score range (thanks to this forum!!). And to have someone take it from me...well like I said, the tears were about to pour. I found the affidavit online, printed it out and will be heading to the police department tomorrow. I plan to send out whatever is necessary to the CRA and CA -hopefully I will get to the bottom of it.

I cant thank you all enough. I never knew about congress and all the good things to protect the consumer. My spirit is calm and I know everything will be ok. I sure hope my score shoots back up to where it was. But alas, lets handle first things first. IF I could scream a huge thank you and bake some pecan caramel cakes for everyone....I would *southern women always want to bake you a lil something in appreciation* THANK YOU!!!!!!!!!!

[RobertEG]

If in the mood for some background reading, the CR blocking provisions are set forth in FCRA 605B, the right to request business records from the OC  is set forth in FCRA 609(e), and the right to request info from a debt collector is set forth in FCRA 615(g).

[beautybrainsbooty]

Sooooo good to have this knowledge. Thank you so much!