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Paid Collection - Can Original Creditor ask Collection Agency to Delete?

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Felix9
Member

Paid Collection - Can Original Creditor ask Collection Agency to Delete?

I foolishly paid a sketchy collection about 4 years ago, expecting it to come off my report but didn't get any sort of confirmation.  So now I have a $199 Medical bill that should never have gone to collection on my credit report. :-(  As far as I can tell it's lowering the 2 it's on (Transunion and Equifax) about 70 points, all things being equal on all 3 and Experian not having it.  Originally the bill was like $3 but they never cashed the check, bumped it to $199 (cause they said they were being nice with the $3) and sent it collections.  I paid the Original Creditor directly, being very nice and even paying the ridiculous $199, but they just sent to the Collection Agency that I paid and now it'll be there for another 3+ years before it comes off.

 

Right now I REALLY need to refinance my mortgage but can't with the beating this insane collection is doing.  I was told not to dispute it if I'm going to apply for a mortgage, and I also disputed it 3 years ago and it's still there.  The question is can the Original Creditor (Radiology company) ask the Collection Agency to remove it?  I'm hoping I can be nice and do a GW call and beg them to take it off, talk about the "crime" not fitting the punishment!

 

Any help would be greatly appreciated, thanks!

 

P.S.  One of the Mortgage people said there is no way a $199 Collection for 4 years ago is lowering my credit that much, is that accurate?  It seems extreme to get hammered that hard, but I guess the system is out there to screw people so it kinda makes sense to me. lol

Message 1 of 10
9 REPLIES 9
gdale6
Moderator Emeritus

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

You can request GW deletion from the reporting creditor or try to get the OC to ask that the CA remove it but the OC cannot force them to do so.

Message 2 of 10
Anonymous
Not applicable

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

70 points does seem a little steep for a four year old collection. Are you sure that's the only item dragging down your score? Best thing you can do at this point is goodwill letters. Try begging, lol. Explain that this minor account that was paid promptly is standing in the way of refinancing. Good luck.

Message 3 of 10
Felix9
Member

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

Yeah turns out it's not 70, rather 111. :-(

Message 4 of 10
Anonymous
Not applicable

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

That does seem extreme. Speaking as someone that took an 80 point hit recently, I know that sinking feeling all too well. I would go over reports line by line to find the problem. Are they reporting the collection accurately? Which CRA is it, and where did you obtain the score? I just found out today that a score I thought was gospel from equifax was actually a fako, and my fico 8 was actually almost 70 points higher. Good luck with your search!

Message 5 of 10
Felix9
Member

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

All data is from here on MyFico.  All accounts are identical except for this Collection.

 

Equifax's Status: Paid

Equifax has a comment of: Consumer disputes this account information

 

TransUnion's Status: Payment after charge off/collection.  

TransUnion has a comment of: Account information disputed by consumer

 

Both have a $0 balance

Both have a Date Assigned of Jan 24, 2011

 

Credit scores on Non-Experian (which doesn't have collection) is 732, Experian is 843.  111 hit for a 4+ year old collection is just bat-sh*t insane!  Note these are all FICO 8 Scores from here.

Message 6 of 10
Anonymous
Not applicable

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

Ok you are right. That's crazy. I took an 80 point hit last month but my scores are already rebounding, so I can't understand why it's still hitting you this hard. Could there be any other reason? High utilization or something like that? Because that would be a quick fix. I would goodwill the dogsnot out of the ca to get that entry deleted though. I mean like daily letters, phone calls, etc. 

Message 7 of 10
Felix9
Member

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

Nope not Utilization.  I have 2 Credit Cards, one is $10,300 limit other is $17,100.  Total Utilziation is 2%, $670 bucks between the two cards.  I have no car payment, have a 0% Tractor payment that's $2,639 of $3,726 @ a whopping $77 a month, but that's an Installment account not a Revolving so doesn't count towards utilization.  Never a late on anything, ever.  Literally the ONLY difference from my 843 Experian and 732 is this $199 Collection from 4+ years ago.  Everyone is always shocked when I tell the, but trust me, nothing else.

Message 8 of 10
Anonymous
Not applicable

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

A collection puts you in a completely different scoring bucket than a clean file does. Still seems to be a lot of points for a four year old collection...

What I do find hard to believe is that one four year old PAID collection is somehow holding you back from getting a refi. I think you need to shop some different lenders.
Message 9 of 10
Felix9
Member

Re: Paid Collection - Can Original Creditor ask Collection Agency to Delete?

Those are my FICO 8 scores, Mortgage scores are worse in general, also the older scoring model considers my $2,639 tractor a Consumer Financial loan or some such nonsense.  Saying something to the affect of only people with bad credit get this (lie) and also that the APR's tend to be high (also f'd up, as my APR is 0%).

 

I probably CAN get a loan, but it'll be a crap APR so really what's the point?  How a $199 collection can obliterate a perfect credit score is really really screwed up.  But sadly the proof is in the pudding, 843 to 732 = -111. :-/  My credit is very basic, I've reviewed it dozens of times, there's nothing else different.  I'm curious if it was intended to have such an insanely profound effect or something is majorly screwed up.  Like what would happen if the $199 was a month ago, would I have -200, -300? lol

Message 10 of 10
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