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Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Paid original creditor, can CA tradeline be disputed?

Great forum! I have found so much useful information in a short time..

 

Quick opinion- I had a $663 dollar debt to a hospital for services. I am not disputing this.

They had put it into collections, with a company working on their behalf, not a sold account.

I paid the hospital in full, and recieved a reciept indicating my account is settled with the OC

 

Can the collection agency continue to report this as a collection debt? They are stating they cannot remove the tradeline, but this doesn't seem accurate because the debt no longer exists... and since they don't own the account, shouldn't the be required by law to have it removed?

 

Either way, I had to pay off this debt, but I just don't want this collection company to be able to report Paid in Full instead of having it removed... Should I dispute?

 

Guidance would be greatly appreciated!

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


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Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Paid original creditor, can CA tradeline be disputed?

Yes, they can report.  The OC only needs to notify them that you paid and the have to update to paid.

 

You can google the HIPAA process and see if that is something you want to try.  We can't discuss the procedures on the forums.

 

A second option is to ask the OC if they will pull the account back from the CA since you have already paid them.

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Paid original creditor, can CA tradeline be disputed?

Guiness

 

thanks for that advice..

 

I was unaware, but I am learning that I have been quite ill-informed on this whole process.

 

I guess I have a follow up quesiton: If I am to send a goodwill; the collection agency probably would be salty that I didn't pay, so should I good will the original creditor and ask them to contact the collection company to pull back the account? I just did this yesterday; so I am not sure if they have reported to them yet or not.

 

what would be your suggestion?

 

Thanks!

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Paid original creditor, can CA tradeline be disputed?

I wouldn't send a GW yet.  Call the OC and ask them since you paid them will they recall the account from the CA.

 

 

New Visitor
Blandon
Posts: 1
Registered: ‎11-18-2012
0

Re: Paid original creditor, can CA tradeline be disputed?

I don't think this is entirely correct because if the OC discontinues using that collection, they were basically fired from the account. If the OC does not stand with the old collection they are left flagging in the wind to defend litigation. While the reporting agency would love to continue reporting it has no teeth to stand up in court. The reason is that is common practice for one collection to be replace my another and another as the account ages. Allowing this practice would mean an OC could hand a single account to 100 collection agencies as a vindictive means of  bartering with the debtor. A dispute in this matter should aim at separating the OC from the collection agency in the want of collection services and further reporting. If the OC stands with the information that the collection is providing then it presents more of a problem. It is fairly common for old collections that have been replaced by other agencies to retain their place a credit report falsely depicting a worse financial position then really exists. Debt collection hate this but there exists a real avenue for a law suit here if people pursue it. I would just continue to dispute the information and try to collect payment receipts showing no association with the collection agency in the transaction. Credit file information should accurately show the current ownership of a debt account.. If a collection has not outright purchased the account then they are in a weaker positon to be plying information that lacks accurate timely reporting. Its no more accurate then gossip. You have to be ready to be aggressive with filing law suits, not idle you can't do that declarations but actually filing court documents. If you have paid the bill the only person that stands to lose should you win, is the collection.

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: Paid original creditor, can CA tradeline be disputed?

I'm guessing Scott has had this removed for awhile now, maybe he'll answer and let us know what came of it

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Frequent Contributor
ac921ol
Posts: 356
Registered: ‎11-16-2012
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Re: Paid original creditor, can CA tradeline be disputed?

Im, going this route right now, My OC has the account, and has hired and CA to send me mail and contact me about the debt, they said I need to pay the OC, my plan is to pay them only if they say they will get in touch with CA and tell them to pull the collection. (not update to paid in full, but delete the actual collection) if they wont, then we will need to figure something out.

 

my only issue is that, I dont have a letter for this type of issue, or dont know exactly how to tackle it, I dont want to start paying it then ask, I want to come to an agreement before the debt is paid obviously.



12/28/13 (Garden Start Date)



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RobertEG
Posts: 18,117
Registered: ‎03-19-2007
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Re: Paid original creditor, can CA tradeline be disputed?

[ Edited ]

There is simply no such thing as an OC "pulling back" collection reporting done by their assigned debt collector.  It is not their reporting.

 

 Payment of the debt terminates any collection on the debt, so the debt collector is required only to close their collection and report $0 still under collection.

 

The OC certainly can request their debt collector to delete, but that's all.  Such requests from a creditor are asking the debt collector to act contrary to their reporting agreement with the CRA, which stipulates that reporting should not be deleted based on payment of a debt, so I would not fault any OC for avoiding that mess. 

 

In reporting a collector, an assigned debt collector is not reporting the debt, they are reporting their collection efforts on the debt.

Subsequent payment of the debt, regardless of who it is routed, does not alter the fact of their prior, authorized reporting of their collection, and does not require its deletion.

 

While many seem to prefer to pay the OC and disregard the debt collector, that is not, in my opinion, usually the best path.

The debt collector can agree to deletion of their own reporting.  Having been left out of the job they were hired to do may not foster a feeling of subsequent GW deletion on their part.

 

 

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Paid original creditor, can CA tradeline be disputed?


RobertEG wrote:

There is simply no such thing as an OC "pulling back" collection reporting done by their assigned debt collector.  It is not their reporting.

 

 Payment of the debt terminates any collection on the debt, so the debt collector is required only to close their collection and report $0 still under collection.

 

The OC certainly can request their debt collector to delete, but that's all.  Such requests from a creditor are asking the debt collector to act contrary to their reporting agreement with the CRA, which stipulates that reporting should not be deleted based on payment of a debt, so I would not fault any OC for avoiding that mess. 

 

In reporting a collector, an assigned debt collector is not reporting the debt, they are reporting their collection efforts on the debt.

Subsequent payment of the debt, regardless of who it is routed, does not alter the fact of their prior, authorized reporting of their collection, and does not require its deletion.

 

While many seem to prefer to pay the OC and disregard the debt collector, that is not, in my opinion, usually the best path.

The debt collector can agree to deletion of their own reporting.  Having been left out of the job they were hired to do may not foster a feeling of subsequent GW deletion on their part.

 

 


How cute! My first ever post was revived back from the dead... :smileywink:

 

I agree with RobertEG, as I usually do in this situation, I just always like to add that I have had success doing exactly what is listed above, paying the OC in exchange they compel the CA to remove the account.

 

They don't have to, you are trying to use your payment to leverage the OC against the CA. The CA likely will cave, if they have a working relationship they want to maintain. 

 

At least that is my theory. However, YMMV and don't think for a second you 40 dollars is worth more than the XYZ amount of money a collection company might bring to the table.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Regular Contributor
Oyiwaa
Posts: 212
Registered: ‎09-25-2012
0

Re: Paid original creditor, can CA tradeline be disputed?

I agree with both RobertEG and Scott:  both approaches could work depending on the CA and the OC involved. 

 

As RobertEG indicated, paying the OC (particularly if the OC is not reporting) is not a nice way to build a rapport with the CA and get them to delete the TL.

 

So, what I would do is conduct a couple of searches on this forum and probably other similar ones to find out about others experiences with the OC and the CA. Though each experience is unique, the results of the search will likely point you in the right direction, as far as taking chances.

 

In my case (Comcast versus Eastern Account Systems), my searches showed that both companies are difficult to work with, but easier to get a deletion once the account is paid in full.  So I went head and made payments to the CA - pay and then GW.

 

So, consider the merits of both approaches and hopefully one of them will work.

 

cheers, Oy


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