Problems with Fingerhut/Webbank

[Anonymous]

We recently started cleaning up/rebuilding my husband's credit.  He had a Fingerhut account that had a $148 balance on it.  It was just last year that we had it but when we moved it fell through the cracks.  I logged into their website to see if the account was still active on their site.  I paid the payment immediately.  I have a receipt and confirmation number for this payment.  After 24 hours the online account updated to show a $0 balance.  Upon further investigation, the credit report shows that it was charged off.  I emailed Fingerhut about this payment and they tell me that it has been sold to another agency and to contact them to make payment.  The problem is they already took and processed my payment.  I emailed back with proof of both the payment and where the online account shows a $0 balance.  I stated that they either need to refund my payment so that I can pay the collection agency or update my husband's credit reports to accurately paid in full.  I guess I"m looking for advice if they give me a hard time.  Any suggestions?

[lindsaydruart]

I'm dealing with this EXACT issue with them. I paid Fingerhut, not the CA and every time I call about it, they say I have to talk to the CA. Technically, it was a charge off so that part is right but it should say it has a zero balance. You would need to do a GW letter to have them take off th derog status. It is a charge off because they sold it but you can ask them to update the status. I'm writing my GW letter right now. Good luck!

[Anonymous]

@lindsaydruart wrote:

I'm dealing with this EXACT issue with them. I paid Fingerhut, not the CA and every time I call about it, they say I have to talk to the CA. Technically, it was a charge off so that part is right but it should say it has a zero balance. You would need to do a GW letter to have them take off th derog status. It is a charge off because they sold it but you can ask them to update the status. I'm writing my GW letter right now. Good luck!

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Thanks for the reply.  I will do that today as well.  There is also a collection agency account listed for the Fingerhut.  Should I send a letter to them with proof of payment to Fingerhut and ask them to deleted the account from the credit report?

[lindsaydruart]

Absolutely! I made sure the CRA didn't report on my report for it. Only Fingerhut is now. Good luck!

[Anonymous]

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@Anonymous wrote:

We recently started cleaning up/rebuilding my husband's credit.  He had a Fingerhut account that had a $148 balance on it.  It was just last year that we had it but when we moved it fell through the cracks.  I logged into their website to see if the account was still active on their site.  I paid the payment immediately.  I have a receipt and confirmation number for this payment.  After 24 hours the online account updated to show a $0 balance.  Upon further investigation, the credit report shows that it was charged off.  I emailed Fingerhut about this payment and they tell me that it has been sold to another agency and to contact them to make payment.  The problem is they already took and processed my payment.  I emailed back with proof of both the payment and where the online account shows a $0 balance.  I stated that they either need to refund my payment so that I can pay the collection agency or update my husband's credit reports to accurately paid in full.  I guess I"m looking for advice if they give me a hard time.  Any suggestions?

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This is exactly why you want to know what's on your CR's before you rush in and pay an old debt. This issue could have been avoided by contacting the OC first. Even if you didn't know it was on your report as a Charge Off Fingerhut would have told you that the debt was sold and you needed to take it up with the CA.

Your best hope of negociating a favorable outcome is when you still have your money and they want it!!!

[ThetoriParadox]

I am in the same boat with a charged off Fingerhut Account, I am paying fingerhut directly, never the CA and teh CA is updating my balance as though I am paying them... Fingerhut is fwd my payment to the CA, Jefferson Capital.  I am wondering, if anyone has paid off Fingerhut through the Fingerhut online portal completely, what happened with the CA? is it still reporting? or did it come off?

[lindsaydruart]

For me, the CA stopped reporting but Webbank still reports the CO with a zero balance

[RobertEG]

If an OC permits you to send payments to them, that alone does not terminate any assignment of collection authority that they may have made to a debt collector.

The debt collector retains collection authority and thus has no requirment to delete their collection.

They do, however, have the obligation to update the amount of the debt that remains under collection as payments are made, regardless of who they are made to.  FCRA 623(a)(2).

Once the debt balance, and thus amount remaining under collection, reaches $0, the debt collector must update their reporting to show a balance of $0 and close their collection.  They are not required to delete their collection based on payments having been made.  In fact, CRA policy instructs debt collectors not to delete based on payment of the debt.

CRA policy only requires deletion of a collection based on termination of collection authority by the debt collector.

Thus, if paying the OC, one must obtain termination of their assignment of collection authority before the debt is paid in order to require deletion of the collection.

Otherwise, deletion is totally voluntary on the part of the debt collector.