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Multiple collection agencies reporting

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gardoave
Valued Member

Multiple collection agencies reporting

There are two seperate collection agencies (Commonwealth Financial Systems and Round two recovery) reporting the same medical bill.  I sent them both validation letters but have not heard back from any of them.  After R2R received my validation letter, they entered a comment on my credit report that I am disputing.  I also called to see who is the origianal collection agency and they both stated they received the collection directly from the client.  how should I follow my validation letter?

 

 

Starting score: (11/24/13) TU: 517 Eq: 533 Exp: 520
(12/25/13) TU: 595 Eq: 592, Exp: 595
(02/20/14) TU: 637 Eq: 623 Exp:610
(04/09/14) Eq: 639
Message 1 of 10
9 REPLIES 9
RobertEG
Legendary Contributor

Re: Multiple collection agencies reporting

As for reporting by both debt collectors, there is no requirment in either the FCRA or the FDCPA that requires a first debt collector to delete their reporting once their collection authority is terminated and the debt remains unpaid.

 

However, the standard CRA reporting manual instructs debt collectors to delete their reporting in such situations, so you can pursue deletion based on CRA reporting policy.

 

Only one debt collector can have active collection authority, so sending a DV was appropriate to require contnued collection activities until you are advised of their status and verify the debt  However, assuming your DVs were timely, they do not compel a response within any set period.  The active debt collector can choose to cease active collection utils such time as they wish to address debt verificztion.

 

If your DV was timely, then you have a bit of a restraint in your next action, as the cease collection bar prevents them from any negotiations on the debt as long as the cease collection bar remains in place.  Thus, you are apparently now in a state of limbo pending their response.

Message 2 of 10
gardoave
Valued Member

Re: Multiple collection agencies reporting

Round two recovery did validate my debt. They said if I paid in full they would delete it from my credit report so I went ahead and paid the total amount which was $180.  I received a confirmation email and it would be deleted in less than a month.  Commonwealth has not responded to my validation letter so I am planning on disputing this to the credit bureaus.  I am going to send the credit bureaus my certified validation letter receipt along with my paid receipt from round two recovery to show them that I have taken care of this debt.  What do you think? 

Starting score: (11/24/13) TU: 517 Eq: 533 Exp: 520
(12/25/13) TU: 595 Eq: 592, Exp: 595
(02/20/14) TU: 637 Eq: 623 Exp:610
(04/09/14) Eq: 639
Message 3 of 10
notfancy
Valued Contributor

Re: Multiple collection agencies reporting


@gardoave wrote:

Round two recovery did validate my debt. They said if I paid in full they would delete it from my credit report so I went ahead and paid the total amount which was $180.  I received a confirmation email and it would be deleted in less than a month.  Commonwealth has not responded to my validation letter so I am planning on disputing this to the credit bureaus.  I am going to send the credit bureaus my certified validation letter receipt along with my paid receipt from round two recovery to show them that I have taken care of this debt.  What do you think? 


I wouldn't do that. Technically, a company is not supposed to accept a payment for deletion. They are supposed to just update your account as paid collection. Wait til the one comes off from the company you paid. You CAN send the second collection agency the letter showing proof that you paid the bill though and then ask them to delete their collection from your credit bureau reports.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 4 of 10
gardoave
Valued Member

Re: Multiple collection agencies reporting

Thanks, I will wait till round 2 recovery drops off.

Starting score: (11/24/13) TU: 517 Eq: 533 Exp: 520
(12/25/13) TU: 595 Eq: 592, Exp: 595
(02/20/14) TU: 637 Eq: 623 Exp:610
(04/09/14) Eq: 639
Message 5 of 10
notfancy
Valued Contributor

Re: Multiple collection agencies reporting


@gardoave wrote:

Thanks, I will wait till round 2 recovery drops off.


I'd still consider  sending the other company proof that you paid the bill and asking them to delete their entry of it, as it is a duplicate account that is paid.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 6 of 10
gardoave
Valued Member

Re: Multiple collection agencies reporting

I paid R2R last week and it came off this week.  A hard copy receipt came in the mail today so I will use it to dispute the other collection amount from commonwealth.  

Starting score: (11/24/13) TU: 517 Eq: 533 Exp: 520
(12/25/13) TU: 595 Eq: 592, Exp: 595
(02/20/14) TU: 637 Eq: 623 Exp:610
(04/09/14) Eq: 639
Message 7 of 10
gardoave
Valued Member

Re: Multiple collection agencies reporting

Update:

 

I decided to file a dispute against commonwealth with all three credit bureaus online.  I attached all of my documents from R2R which included my email payment confirmation, credit card statement I used to pay, the mailed hard copy receipt, and a collection letter from commonwealth that shows the same account information and number.  After about a week, the dispute was complete and said it would be deleted from my credit report.  It took about 2 days for commonwealth to finally come off all three credit reports.   

Starting score: (11/24/13) TU: 517 Eq: 533 Exp: 520
(12/25/13) TU: 595 Eq: 592, Exp: 595
(02/20/14) TU: 637 Eq: 623 Exp:610
(04/09/14) Eq: 639
Message 8 of 10
notfancy
Valued Contributor

Re: Multiple collection agencies reporting


@gardoave wrote:

Update:

 

I decided to file a dispute against commonwealth with all three credit bureaus online.  I attached all of my documents from R2R which included my email payment confirmation, credit card statement I used to pay, the mailed hard copy receipt, and a collection letter from commonwealth that shows the same account information and number.  After about a week, the dispute was complete and said it would be deleted from my credit report.  It took about 2 days for commonwealth to finally come off all three credit reports.   


That is wonderful! Congratulations!

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 9 of 10
gardoave
Valued Member

Re: Multiple collection agencies reporting

Thanks again for your input

Starting score: (11/24/13) TU: 517 Eq: 533 Exp: 520
(12/25/13) TU: 595 Eq: 592, Exp: 595
(02/20/14) TU: 637 Eq: 623 Exp:610
(04/09/14) Eq: 639
Message 10 of 10
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