help with removal of incorrectly reported information

[bbrentlinger]

My husband had a collection with GSB.  We paid the original creditor in full.  We disputed the reporting with all 3 CRA's and all but equifax removed the information.  Equifax says the debt was verified.  We sent a letter to GSB with a copy of the collection and a copy of the receipt showing paid in full to the OC asking them to remove the data.  I would like to cover all bases and send a letter to Equifax as well to dispute again.  I feel that GSB did not actually verify the information.  Anyone have a good letter to send to the CA and the CRA?  thanks!

[RobertEG]

Payment of the debt, regardless of whether directly to the OC or through the debt collector, requires that the collecton be closed, and that the amount remaining under collection by updated to $0.  Payment does not negate the fact that the debt collector had collection authority on the debt, and thus does not require deletion of their reported collection.  It remains accurate.

For whatever reason, you were able to get two of the CRAs to delete.  However, there is no basis fo demand that EQ delete based on satisfaction of the debt.

If the debt collector verified back to the CRA that they had legitimate collection authority, that is all that they were required to do, and the CRA can accept that as verification of the accuracy of their reporting.  Perhaps they only chose to verify back to EQ, and not with the other two CRAs.  Who knows......

A renewed dispute on substantially the same information can be dismissed by the CRA as frivolous or irrrelevant without forwarding to the debt collector for another investigation and response on their part.

I would suggest leaving the CRA out of the frucus and contacting the debt collector to request their GW deletion.

Pursuing a dispute with no basis under the FCRA for deletion would, in my opinion, most likely burn the bridge of possible GW deletion on their part.

[bbrentlinger]

 I thought that i had read somewhere that if we paid the original creditor as they still had the bill (it was a utility bill after we moved) that it was no longer a valid debt for the collection agency.

[RobertEG]

A debt collector who is collecting as an assigned agent of the OC does not own the debt.  They have the right to pursue collection on the debt on behalf of the OC, who is the owner of the debt.  Thus, reporting by an assigned debt collector is not of the debt, it is of their authority to collect on a debt.

Payment to the OC does not equate to the debt collector no longer having the debt, it equates to termination of their collection authority on the debt to the OC.

[guiness56]

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@bbrentlinger wrote:

 I thought that i had read somewhere that if we paid the original creditor as they still had the bill (it was a utility bill after we moved) that it was no longer a valid debt for the collection agency.

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If the OC recalls the debt from the CA they would have to delete.  Some say they don't based on no requirement of the FCRA but it is written in the credit reporting manual.

[bbrentlinger]

thanks i will contact the OC and see if they will recall it.  I do not see why they wouldnt since it is paid in full.

[RobertEG]

The OC never assigned the debt to the debt collector, they assigned authority to them to attempt collection on their debt.

The second the OC accepted payment, the debt no longer existed.  Thus, there is no "recall of the debt" from the debt collector.

The collection is simply terminated based on no remaining debt upon which they can collect.

The OC is required to notify the debt collector that the debt has been satisfied, and the debt collector is required to close their collection, and update the amount under collection to show $0.