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Two Collection Companies Reporting the same debt

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Anonymous
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Two Collection Companies Reporting the same debt

My husband has a old debt from Sprint that was sent to collections.

 

Now two collection companies Diversified and Enhanced Recovery are both reporting the debt to all 3 agencies.  Enhanced Recovery just starting to reporting the debt, so I assumed Diversified sold them the debt, so I disputed it. Experian just sent me a email saying that they wouldn't be removing it. I am still wait for the other agencies. 

 

Why wouldn't Experian remove it? It is clear to see that they are both reporting the same debt. What do I do next? 

 

Message 1 of 4
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Anonymous
Not applicable

Re: Two Collection Companies Reporting the same debt


@Anonymous wrote:

My husband has a old debt from Sprint that was sent to collections.

 

Now two collection companies Diversified and Enhanced Recovery are both reporting the debt to all 3 agencies.  Enhanced Recovery just starting to reporting the debt, so I assumed Diversified sold them the debt, so I disputed it. Experian just sent me a email saying that they wouldn't be removing it. I am still wait for the other agencies. 

 

Why wouldn't Experian remove it? It is clear to see that they are both reporting the same debt. What do I do next? 

 


What reason did you give for the dispute? I had this exact same situation with Diversified, and when I disputed, I entered the comment "Collector does not have collection authority for this account" and it was deleted from all three.

 

While there is no specific legal requirement against this sort of double reporting (there certainly should be IMO), the CRAs have reporting instructions intended to prevent double reporting of collections. A collector is instructed to delete their reporting when an unpaid debt is moved to a new collector.

Message 2 of 4
needtodobetter
Frequent Contributor

Re: Two Collection Companies Reporting the same debt

I completely agree with Norman and did the same thing - disputed saying they didn't have collection authority and they were removed within a week or so.  I wasn't sure if they would delete the TLs (there were 3) or just mark the old CA as having a $0 balance, but they did remove them.  Good luck!

05/01/15: EQ 519 TU 541 EX 506
10/28/15: EQ 637 TU 646 EX 622
First Goal Score: 600
Second Goal Score: 640
Message 3 of 4
RobertEG
Legendary Contributor

Re: Two Collection Companies Reporting the same debt

I concur with all that has been stated.

The CRAs only want one collection simultaneously being reported on the same unpaid debt.

Thus, basis for deletion of the first collection is CRA policy, which is predicated only on whether the debt collector retains active collection authority on an unpaid debt.

 

However, a debt collector's auhority to continue collection on a debt is also terminated when the debt is paid, for which the CRA policy is that they debt collector should not delete their reported collection.  The basis for that policy is to retain the fact that the debt went to collection.

Thus, the CRA policy of deletion requires two things..... one, the collection authority has been terminated, and two, the debt was unpaid when the authority was terminated.

Message 4 of 4
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