PLEASE HELP - Advice on a paid collection

[muumike]

I had a collection with TMobile, but Enhanced Recovery was the one reporting the debt on my credit reports.

I decided to call TMobile today and see if I could pay them directly, which they assured me I could. I got a copy of my outstanding balance from a TMobile corporate store before paying to verify they did in fact still own the debt. I decided to pay them today and now I no longer have a balance. I have never communicated with the CA about the debt, but TMobile said they will inform the CA that the debt is paid and they can no longer report.

QUESTION:

The tradeline from the CA should be deleted from my report correct? Since I never communicated with them and handled the debt directly through TMobile (now I also have a confirmation that my balance is $0.00), they will be incorrectly reporting that they own or owned the debt, or just by marking the status as Paid/Closed.

If not, I should DV the CA so they have to delete the tradeline correct?

I would really really appreciate anybody's insight on this because I think I lucked out big time how I was able to handle this, but just want to make sure I didn't get suckered.

[DVH1980]

You are correct. You could DV them in which case they would have to remove or you could also dispute it with the CRA and the outcome will be the same.

[muumike]

Awesome to hear! I planned to app for two cards at the end of this year when all my inqs aged 1 year and that collection was the only thing in the last few years that was negative. I have a CO from 3 years ago, but since I have been Paid on time with student loans and 6 mos so far with my Cap1 secured. Brought my EQ FICO up 48 points since then and I am sure this collection being removed will bump it just the amount I am looking for in order to garden another 6 months before the apps.

[RobertEG]

No!

The debt collector, upon being notified of payment of the debt, must update the balance on their collection to $0, and close the collection, as there is no longer a remaining debt to collect.  They are NOT required to delete their prior reporting, as it accurately reported the fact that they had collection authority prior to payment of the debt.

Reporting of a collection is not a statement that they have any ownership to the debt, only that they are authorized to collect on it.

A DV now would, in my opinion, be just short of useless.  They have no requirement to respond.  Even if your DV were timely, which it most likely would not be, all it would do is to require them to cease collection activity.  With the debt now being paid, that has already been accomplished. 

Even if they chose to provide debt verification, which they almost assuredly wont, all they would have to say is  "We verify that the debt is $0."

There is no provision of the FDCPA or FCRA that requires any CR deletion based on failure to have provided debt verification.  Additionally, there is no inaccuracy in reporting upon which to base a dispute through the CRA.

You can ask the OC to try to persuade the debt collector to delete, but nothing requires them to do so.

You will most likely be left with requesting GW deletion.  If you get into a hassle with them over asserting a requirement that they delete, it might kill any feeling of GW on their part.

[DVH1980]

My appologies, I was under the assumption that since the the CA is no longer collecting anything, they can no longer report? I can see if Tmobile wanted to list a negative history as they are the original creditor.

Going off this statement " TMobile said they will inform the CA that the debt is paid and they can no longer report" I was assuming the OP had a some sort of written agreement from Tmobile as its pretty much standadrd operating procedure to do that for most PFD's.

[RobertEG]

They cant report continued collection activities, but that is not the same as deletion of prior, accurate reporting.  They are required to report closing the collection, and update the amount under collection to $0.

[muumike]

yes, but if  the CA actually owned the debt wouldn't I have to pay through them. For example, I had a collection with BoA chared off to CACH LLC a few years back and CACH was the one collecting and reporting owning the balance.

If a CA owned the debt (purchased it from the OC) and solely reported collection on the debt on my CRs, my ability to pay the OC directly nullifies their agreement that they ever actually owned the debt doesn't it? That or I would think TMobile made free money off of me and ERC can still collect.

[RobertEG]

If the debt collector owned the debt, the OC cannot accept payment against it.  If the OC did accept payment, it would not apply to the debt, and would not affect the ability of the debt collector to continue collection on the full amount.  The act of the OC would not nullify any fact of ownership.  It would just have been an improper act on their part, and you would have action against them for return of the payment. The debt collector would not be involved

[muumike]

I went into a corporate tmobile store and got my bill with due date. I also received confirmation of payment and 0 balance. Csr said my account was being handled by VS but I could pay them directly if that helps at all in the clarification. If it will remain what would be the next step to attempt removal of the collection on my CRs?

[muumike]

Also, if that's the case, the dunning notice the CA originally sent me was with a settlement offer. Was I stupid not to settle then or was it right paying the full amount?