Re: Paid original creditor, can CA tradeline be disputed?
11-18-2012 10:46 AM
I don't think this is entirely correct because if the OC discontinues using that collection, they were basically fired from the account. If the OC does not stand with the old collection they are left flagging in the wind to defend litigation. While the reporting agency would love to continue reporting it has no teeth to stand up in court. The reason is that is common practice for one collection to be replace my another and another as the account ages. Allowing this practice would mean an OC could hand a single account to 100 collection agencies as a vindictive means of bartering with the debtor. A dispute in this matter should aim at separating the OC from the collection agency in the want of collection services and further reporting. If the OC stands with the information that the collection is providing then it presents more of a problem. It is fairly common for old collections that have been replaced by other agencies to retain their place a credit report falsely depicting a worse financial position then really exists. Debt collection hate this but there exists a real avenue for a law suit here if people pursue it. I would just continue to dispute the information and try to collect payment receipts showing no association with the collection agency in the transaction. Credit file information should accurately show the current ownership of a debt account.. If a collection has not outright purchased the account then they are in a weaker positon to be plying information that lacks accurate timely reporting. Its no more accurate then gossip. You have to be ready to be aggressive with filing law suits, not idle you can't do that declarations but actually filing court documents. If you have paid the bill the only person that stands to lose should you win, is the collection.