Professional Finance Company - Response to DV after payment to Original Creditor.

[Anonymous]

I paid the orignal creditor on a colection account for $77.00 and asked them to retract the account and they advised that they couldn't. So, I sent a DV letter to the Collection Agency after I made the payment and then sent a DV letter. They responded to the letter and provided a copy of the Gas Bill and the following.

"Regarding your demand for vertifcation including orignal signed contracts, copies of state licenses, our agreement with the orignal creditor listed on the accounts., there is no basis in law to substaine your right to such information from our company and as such we respectfully deny your request.

Please be advised that the account balance lised with our office will be reported to the credit reporting agencies as "paid, collection item". Because, of your dispute of the balance we have asked the credit reporting agencies to mark this account as disputed. Consumer reporting agencies may take up to 30-days or longer to update the reports and this is beyond our control"

How are they able to update with a $0.00 balance when the account has already been paid?

Any recommendation on how to get this paid collection off my report?

[RobertEG]

The debt collector is correct in their statement that they have no requirement to document their determination that the debt is valid.

They are only required to investigate and reach a determination supported by that investigation.

Once the debt is paid, there is no longer a debt.  Thus, requesting validation of a non-existent debt is a bit superfluoous.

Additionally, assuming your DV was timely, its effect would be to place a cease collection bar on the debt collector, not require a response.

Since payment of the debt has already terminated any authority to collect on the debt, they have no reason for or obligation to even respond.

A debt collector is required, once the debt is paid, to update the current balance to $0, as that is the new and correct status of the debt.

They are not obligated to delete the collection.  In fact, their crredit reporting agreement with the CRAs instructs that their reporting not be deleted based on payment of the debt.  As such, getting the collection deleted will require their voluntary deletion.

I would recommend pleas for good will rather than contesting the propriety of their actions.

[Anonymous]

So your saying I should send Goodwill letters? Can you give me a good example of one?

[dashpt]

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@RobertEG wrote:

The debt collector is correct in their statement that they have no requirement to document their determination that the debt is valid.

They are only required to investigate and reach a determination supported by that investigation.

Once the debt is paid, there is no longer a debt.  Thus, requesting validation of a non-existent debt is a bit superfluoous.

Additionally, assuming your DV was timely, its effect would be to place a cease collection bar on the debt collector, not require a response.

Since payment of the debt has already terminated any authority to collect on the debt, they have no reason for or obligation to even respond.

A debt collector is required, once the debt is paid, to update the current balance to $0, as that is the new and correct status of the debt.

They are not obligated to delete the collection.  In fact, their crredit reporting agreement with the CRAs instructs that their reporting not be deleted based on payment of the debt.  As such, getting the collection deleted will require their voluntary deletion.

I would recommend pleas for good will rather than contesting the propriety of their actions.

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Hello robert....not to take the focus of the OP questions but I want to be clear on something here, If I pay the OC the amount owed can the CA report that I PIF, since I didnt pay them? what are they required to report?

[Anonymous]

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@dashpt wrote:

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@RobertEG wrote:

The debt collector is correct in their statement that they have no requirement to document their determination that the debt is valid.

They are only required to investigate and reach a determination supported by that investigation.

Once the debt is paid, there is no longer a debt.  Thus, requesting validation of a non-existent debt is a bit superfluoous.

Additionally, assuming your DV was timely, its effect would be to place a cease collection bar on the debt collector, not require a response.

Since payment of the debt has already terminated any authority to collect on the debt, they have no reason for or obligation to even respond.

A debt collector is required, once the debt is paid, to update the current balance to $0, as that is the new and correct status of the debt.

They are not obligated to delete the collection.  In fact, their crredit reporting agreement with the CRAs instructs that their reporting not be deleted based on payment of the debt.  As such, getting the collection deleted will require their voluntary deletion.

I would recommend pleas for good will rather than contesting the propriety of their actions.

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Hello robert....not to take the focus of the OP questions but I want to be clear on something here, If I pay the OC the amount owed can the CA report that I PIF, since I didnt pay them? what are they required to report?

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To answer your question, if you pay the Orignal Creditor (like I did) then yes, the collection agency can report it as a $0 balance like they're doing in my case. 

[Anonymous]

Wrong, if you pay the OC and the CA updates your CR with "Paid Collection" that is a violation because you made no payment to them, but instead to the OC. The account should be deletd by CA.