Two CA's report the same debt?

[Anonymous]

Hello - This is my first post, but I've been lurking for a while! 

I am attempting to repair credit ahead of a mortgage application 11 or 12 months from now, and looking for advice. I have several collection accounts in various states .... One important thing to note is that I'm in New Mexico, 3 year SOL.

1. I have what appears to be a utility bill in collection, and it is the very same amount ($171) being reported from two different CA's. I didn't know this was possible!  I am guessing a DV letter is in order? It is from 2008, and each CA lists the same OC.

2. TransUnion reports 3 collection accounts that were paid hospital bills ... long story short, I was in a terrible car accident, and my lawyer paid the bills (about 12 total) after settlement. Somehow these 3 are reporting as collection accounts, and they should never have been in collections to begin with. I think I should just dispute to TransUnion with documentation from my lawyer. Is that correct?

3. I have 4 student loan accounts (Sallie Mae) that were consolidated into a single account with the DoE. The DoE account has been current for a long time now, about  2 years. Is there any hope to get Sallie Mae's accounts removed with a GW letter? Technically they are closed accounts, but they're especially bad history as they have many 90+ day lates.

4. I have a Midland Funding account that was opened in March 2012, citing Verizon as the OC. This is impossible, as I have been using AT&T for many years. It's a low balance that I could easily pay off ($250) . 

Being in a state with a 3 year SOL, I will probably not be sued. Even if Midland sued, I can just pay it off immediately. But the goal is to raise my score from 590 FAKO EQ to something a respectable lender will give me a mortgage, and from what I gather just paying collection accounts doesn't raise the score. In the positive end, the student loans are all current and I have opened 2 secured cards with $3k limits. 

Now for the question ... sorry for all the build up! What is the best route to getting my score up a hundred points or more? Thank you kindly in advance...

[guiness56]

Two CAs can report the same debt but only one can actively collect.  Yes, send a DV to each one.  If ones responds that is who has your debt and I would do a PFD.

I wouldn't dispute with the CRAs.  Who is reporting the medical, OC or CA?  Even though they were paid through settlement, they could still report as a collection until paid. Are these collections reporting as paid?  If not, send the CA the documentation from your attorney or have him/her do it, and ask for them to remove them.

You can send Sallie Mae GW letters asking for removals of the lates.

Send Midland a DV.  And at the same time contact Verizon and see if they show anything on you.  You could have been a victim of fraud.

Do you have any credit cards?  What is the utilzation on them?

[Anonymous]

Thank you! 

I had no idea multiple CAs can report the same debt. It's a bit outrageous! I will send the DVs to both of them. I am guessing that I can (hopefully) get it removed by one, then double back later to tell the other one to remove it after payment to the first.

The 3 medical collection accounts are reporting not paid, still open, and reported by CAs. I'll send DV letters to each. Just for my own curiosity / knowledge ... why should I not dispute with TransUnion?

Hopefully GWs to Sallie Mae will work, but not expecting anything! And hopefully the Midland / Verizon thing will get cleared up. I can't imagine what the collection account is from.

The secured cards (one Capital One, one US Bank) are at 8% for the last month when I got them.

Thanks again

[guiness56]

The reason more than one can report the same one is if one stops collecting it and sells it to another.  The first one does not have to remove their TL even though the second one is the one actually collecting.  Paying a collection doesn't mean it will automatically come off.  It can stay for 7.5 years from the DoFD.  However, you can send GW letters asking for removal.

When you initiate a dispute with the CRAs any dispute can easily come back verified even though you know for a fact it shouldn't be.  They use a computer based dispute system called e-Oscar.  The concept is good but it doesn't work very well because the humans don't do what is required of them to make it work as it should. 

Once a dispute is on your CR and the account is just verified it can be a nightmare getting the dispute comments off.  They are especially bad when applying for a mortgage.  They can't be on your report at all.  It is just easier to dispute with the furnisher of the information.

I am guessing you were not at fault in the accident and the other insurance paid.  Did the hospital know this? 

[Anonymous]

It's possible the hospital did not know, but you're right and I was not at fault ... 

If I end up paying collection accounts off, and get them shown as closed with $0 balance, does that hurt my score? I have read in places that a lot of lenders require all CAs to be paid before approval

[guiness56]

Yes many lenders require all collections to be paid.

I don't know how long ago the accident was but you could try to contact the hospital and let them know what is going on and see if they could possibly help you out.  Let them know to the best of your (and your attorneys) knowledge, every bill was paid and you are uncertain how you have any collections from that time.  If, for whatever reason they are valid, see if you can pay them and ask them to recall the debt from the CA and ask them to delete the accounts.  The hospital really cannot make them delete but they may if they are asked to.

If the hospital can't you can try a Pay for Delete with the CA.  Explain the circumstances.  Do it by letter.

To answer your question, a paid and unpaid collection is looked at the same by FICO, as a collection.  So, no, it won't hurt or help your score.

[jemilco]

All my letters went out today! Thank you again for your help ...

That "Other Frequently Requested Threads" is a really great resource too. 

[jemilco]

Just thought I'd make an update for anyone else that searches this ....

I just received a delete notices from Business & Professional Service out of San Antonio. Therefore, two of the three CAs that came from the car accident I was in have been deleted! Since these bills were in fact paid by my attorney to the OC, I simply forwarded the letter sent with payment to the CA. Attached with that was a goodwill letter, where I explained that the accident wasn't my fault, I was severely injured, and the case took nearly 2 years to settle. I signed my name and sent it regular mail, so as to be completely non-confrontational.

One out of 4 collection accounts validated too, so now I'm sending a PFD letter. The remaining 3 did not validate, including Midland and the two CAs that are reporting the same debt. Hopefully they will in the next couple weeks, otherwise I'll have no idea what the next step is. 

Does anyone know what to do if a CA does not validate a debt? The accounts are old, from 2008. I could let them expire, but I'd like to buy a house in a year, so hoping to get removal.

[guiness56]

There really isn't much you can do since they don't have to validate.  They just can't continue to attempt to collect.  So if they call, send you letters, or update your CR without first validating, they are in violation and you can file complaints against them.