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Help with collections....

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TugChris
Valued Member

Help with collections....

I have a CA with Collection Company of America for $525 from a school. I asked the school (who will take payment from me) if they would tell the CA to delete if I paid the school in full. They said no, all they would do is tell the CA to mark the acct. as paid. I did owe the school $135 for unrelated charges that were not associated with the CA and now they are reporting a $135 to them and my CCA CA now says I owe them $390 (525-135). I have tried to PFD the CA but now it seems like I am making payments to the school (even though I'm not). Should I keep on CCA for a PFD? or take my chances to PIF and DV or dispute and hope it falls off. The school is a bunch of morons and I just want this to go away. The CA is only like 4 months old and I know it is really hitting my score. It is the only bad thing on my report. Any help is appreciated!!!
12/12/2009: TU 607 EQ 589
03/24/2010Smiley Sadvia lender) EX 688
04/01/2010: TU 718 EQ 717
Message 1 of 6
5 REPLIES 5
guiness56
Epic Contributor

Re: Help with collections....

First you need to know if the school still owns the account and are reporting a balance.  If they do and you get the CA to PFD, it will only remove their account, not the OCs.  You would then need to send the school GW letters.

 

Since the school said they will take the payment, I would venture to guess they still own the account.

 

You can pay the OC in full then DV the CA.  It might work, it might not.

 

 

Message 2 of 6
TugChris
Valued Member

Re: Help with collections....

The school will still take payments but they have never reported to my CR....they sent me to collections because my pell grant was rescinded for whatever reason. So the CA is the only thing on my report. The school is employed by a bunch of idiots and dont want to work with me at all. CCA just wont answer my letters because the CA thinks I am making payments to the school even though Im not.
12/12/2009: TU 607 EQ 589
03/24/2010Smiley Sadvia lender) EX 688
04/01/2010: TU 718 EQ 717
Message 3 of 6
guiness56
Epic Contributor

Re: Help with collections....

Is this your only collections?  It is really hurting your score because it is so new.

 

Can you PIF?  If you can, I would DV the CA and if they validate send a PFD request.  If they say no I would send another one to someone else in the company.  Just be persistent, keep sending them.

Message 4 of 6
RobertEG
Legendary Contributor

Re: Help with collections....

Here is my read.

Assume the OC still owns the debt. 

The OC has never reported any delinquencies to the CRA, so it is only the CA reporting that is affecting your credit score, correct?

 

The OC referred the debt for collection, and the CA then posted their collection activity to your CR.

 

I know of no provision of the FCRA that compels a CA to delete prior, and accurate, reporting of their collection activity if the OC makes their own settlement of the debt, without involvement and consent of the CA to also delete.  Sure, the OC/CA contract is thus null because there is no longer a debt to seek collectiion upon, but I see no legal provision that would complel the CA to delete their prior reporting.

 

DV is, IMHO, a waste of time if the debt is legit.  It has nothing to do with credit reporting, and has no response date from the CA.

 

PIF with the hope of later GW deletetion has low chance of success.

 

I would renew PFDs to the CA.

Message Edited by RobertEG on 02-20-2010 09:48 PM
Message 5 of 6
TugChris
Valued Member

Re: Help with collections....

Correct, the OC has never posted anything to my CR it is only the CA. That is the big reason I dont want to just pay the school because if I do and DV it it will just come back as "Ohh, your right, you dont have an unpaid collection to the school. You have a paid collection to the school!" and all that will happen is it will be updated as paid with the CRAs and not deleted. Ok, well this just reinforces what I wanted to do, keep sending CCA a PFD untill they finally agree to remove it. And yes, this is the only bad/CA on my report, I have a good mix of credit and no late pays in almost 3 years and my FICO is a LOW 600. I had a CA that was 18 mths old removed from my wifes CR and it bumped her 41 pts. so I'm assuming this one is really hurting me being only 4 mths. old.
12/12/2009: TU 607 EQ 589
03/24/2010Smiley Sadvia lender) EX 688
04/01/2010: TU 718 EQ 717
Message 6 of 6
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