topic Re: Problem with Experian Report in Rebuilding Your Credit

Problem with Experian Report

JBoswell — Fri, 19 Aug 2011 14:06:50 GMT

I recently ordered my annual credit reports from annualcreditreport.com, over the past 5 years I worked very hard at taking care of any problems I had with my credit, I paid off all debts, paid down all my credit cards, and took care of the two collections I had. I've been very diligent with my finances in order to maintain the good scores I was finally able to get... and then today when I pulled my new reports I noticed a negative item on my Experian credit report. There is a collections accounts listed as being opened in April of 2010 in the amount of $828. The original creditor is National Grid, but it's listed under a collection company now. When I pulled my report in August of 2010 this item was not there. The account that it's referring to was an electric bill from an old apartment... I paid this bill off IN FULL in January of 2005 (although prior to January, 2005 it was very VERY late)... how is it possible that a paid/closed account is being sold to collections 5 YEARS after it was resolved? I do still have documentation of my payment to National Grid. Is there anything I can do to get this removed? How can a company sell an account to collections thats already been paid? I really don't understand what happened here but would like to get it resolved ASAP. Any help would be greatly appreciated!

Re: Problem with Experian Report

GregB — Fri, 19 Aug 2011 14:20:04 GMT

I would suggest calling the OC. Have all your paperwork in hand when you call them including proof of payment, last statement, etc.

Re: Problem with Experian Report

LIGHTNIN — Fri, 19 Aug 2011 14:31:05 GMT

I agree with GregB, It may just be a mistake with the OC, giving the CA the wrong info.

Just a quick question......Is the amount of $828 the same as you paid fro in Jan 2005?

Re: Problem with Experian Report

JBoswell — Fri, 19 Aug 2011 14:33:41 GMT

Yea, the amount is the same I paid back in 2005. I will try and contact National Grid, I just wasn't sure if they could remove an account when they technically aren't the ones listing it. thanks for your quick replies!

Re: Problem with Experian Report

Booner72 — Fri, 19 Aug 2011 14:52:51 GMT

They can prob assist getting it back from the CA though.

Re: Problem with Experian Report

LIGHTNIN — Fri, 19 Aug 2011 15:47:28 GMT

If the DoFD was prior to Jan 2005, then it should be dropping off your CR soon.

How old is this debt? older then 7yr? if so, it should not be on your CR, because it's pass CRTP.

Re: Problem with Experian Report

JBoswell — Fri, 19 Aug 2011 16:47:45 GMT

@LIGHTNIN wrote:
If the DoFD was prior to Jan 2005, then it should be dropping off your CR soon.

How old is this debt? older then 7yr? if so, it should not be on your CR, because it's pass CRTP.

It shouldn't be on there at all though, the original debt never went to collections, it was paid off before it did, I was 2 months late when I moved out in 2005, National Grid called me and I paid them directly... you mean that they can report a non-credit utility account that never went into collections as a collection years after the fact just because I was late on a payment 5 years ago? ... it isn't 7 years old yet, 6 I think, does that mean this will be on there for another year? And why didn't it show up until now? I can't believe they can just decide to do that whenever.

Re: Problem with Experian Report

GregB — Fri, 19 Aug 2011 17:02:13 GMT

They probably did not credit the payment correctly at that point. You should always make sure that you have one final statement on any account that shows a $0 balance. Make sure their statement agrees with your statement in your bookkeeping.

Re: Problem with Experian Report

JBoswell — Fri, 19 Aug 2011 17:18:08 GMT

I did, I have a statement that shows a $0 balance and I also have a copy of the cleared check. I kept all of my documentation just in case. Haven't had any problems on this since then, (until now). No idea what happened.

Re: Problem with Experian Report

GregB — Fri, 19 Aug 2011 17:17:19 GMT

That is excellent. Call them up and say "My last statement date XX/XX/XX shows paid in full. My last payment was $x.xx, paid by my check #xxxx. This was cashed by your bank XXXXX on XX/XX/XX.

Sounds like they screwed something up. Duplicate account, entry error, computer error. They should bend over backwards to fix their error.

Good Luck!

Re: Problem with Experian Report

JBoswell — Fri, 19 Aug 2011 17:23:56 GMT

I hope so, I will try getting ahold of them tonight, and I really appreciate all the help!

one last quick thing though - is what the other poster said true? Even though I paid it way before it would have gone to collections, and it hadn't ever been sent to collections prior to this, can they leave this on my report for 7 years due to the late payment to OC back in '05? Because although I can prove that I don't actually owe them anything I can't prove it's been more than 7 years since I was late on paying my electric bill (I missed payment in Dec. '04 and January '05 - paid it off at the end of January). That is worrying me a bit.

Re: Problem with Experian Report

GregB — Fri, 19 Aug 2011 17:33:49 GMT

I don't think that matters as they would need to have to valid reason to send you to collections. If you had a $0 balance, you could sue them for damages if they sent you to collections.

Now IF you were sent to collections BEFORE you paid then YES, a collection could stay on your reports. It sounds like the utility made a mistake and will make sure it is fixed for you.

Re: Problem with Experian Report

JBoswell — Fri, 19 Aug 2011 17:37:31 GMT

*phew* Ok, thanks again! You've been a big help!

Re: Problem with Experian Report

LIGHTNIN — Fri, 19 Aug 2011 18:20:32 GMT

Hi JBoswell, I'm sorry I worried you or confused you. By all means, I didn't mean to. Lets see, if I can explain it better this time.

My mind was jumping forward, just thinking about the CA. Not thinking about you already Paid it, that was my fault,sorry.

One of your post said, was in default prior to 2005. I was thinking 2004, and CA report for 7-7.5years, it should be drop off your CR soon,like 2011.Your EX CR should show the date of removal.

The OC may have turned the debt over to the CA, at the same time you paid it.

And the OC just didn't correct your account at the time and didn't tell the CA that you have paid already.

I have read that sometimes a OC will collect for the CA, and turn the funds over to the CA.Wether that's legal or not IDK.But if that happened, it would have reported as a Paid CA. I don't think, that is what happened to you,because it's reporting the orginal amount. Maybe the OC or the CA were just updating some old account information or something.

It's hard to understand each other, when we just pass messages back and forth to each other here in the forums.So you did the right thing, to ask me or others to explain what I said alittle bit more.

After you contact the OC, please keep us informed.

For lurkers.....For final electric bills, make sure it states just that....Final bill. And keep it forever.

You never know, you may need to show the proof you paid it.

Re: Problem with Experian Report

JBoswell — Sat, 20 Aug 2011 12:20:12 GMT

Thanks Lightnin, I just didn't get what you were saying at first and of course went directly into panic mode

So, here's my update, I called National Grid (OC) last night and they completely denied sending this account to collections, ever. At the time, and definitely not after it was paid, but because of that they said there wasn't anything they could do and I would have to contact the CA directly... if they didn't give them the account they can't make them remove it. What I didn't notice originally though (too busy panicing) was that the collection item on my report actually shows as "paid/closed" I'm now worried that even if I wanted to argue that I paid National Grid directly, BEFORE they date they claim to have acquired this, they will just be like "oh... well, it shows as paid, you're saying it's paid, so what's the problem?" I don't know, perhaps I'm just overly distrustful of these companies. It was an uphill battle trying to recover the total credit ignorance of my college days. It took a long time and a lot of work to fully repair my credit, and now years later, when I think I'm out of the woods I've got this random collection popping up for an account that never even went to collections that I paid off half a decade ago, and it's just so frustrating, like I will never REALLY get ahead of this stuff.

What should I do? I'm a little nervous to engage the CA directly, especially because right now, this item looks totally inaccurate. I can prove I paid National Grid in 2005... which pre-dates when they claim to have received this account (in April, 2010) and ALSO preceeds when they say this account went into default (June, 2006), but if I engage them, could they just go change the dates to make it look like what I'm talking about? Then any argument I might have would be moot. Since they show it as paid I don't really have any leverage, and they don't really have anything to gain by hearing me out. I truly have never heard of this company, never paid them any money, and with the OC denying they ever gave them this account I'm at a loss as to what avenues I have to get this removed. Again, any help would be GREATLY appreciated.

(edited for typos)

Re: Problem with Experian Report

GregB — Sat, 20 Aug 2011 14:28:51 GMT

OC can say that they didn't send it to CA but the fact is that there is no other way for it to end up there. I agree that it will be more difficult to deal with the CA than the OC. I would give the OC another try or even two. If they are local, it might be better doing it in person.

It might work to have the CA try to validate the debt but I'm not familiar with that process so would defer to others.

Re: Problem with Experian Report

JBoswell — Thu, 25 Aug 2011 14:23:50 GMT

Over the past week I have tried contacting the OC several times and everyone I speak to says that this account "was paid off in 2005 and was NOT sent to collections in 2010 or at any time previous to that", although they do admit that the CA in question is the one that they would use if they WERE to have sent the account to collection.

I'm really at a loss and I have no idea how to proceed. I'm afraid to contact the CA, worrying that it might more do harm than good, any one have any advice/ideas/suggestions? I could really use it. As always, thanks in advance.

Re: Problem with Experian Report

LIGHTNIN — Thu, 25 Aug 2011 15:05:36 GMT

Since you dont want to contact the CA, and getting nowhere with the OC, try the CRA.

Send what proof you have and explain that you paid the OC and not the CA, so the CA shouldnt be on your CR.

I dont know if that will work but worth a try, I have read that it does work sometimes. Keep us updated.

ETA: Or ask the CA, to prove that you paid them and if they cant, demand a delete.

Re: Problem with Experian Report

JBoswell — Fri, 26 Aug 2011 11:01:05 GMT

Well I don't WANT to contact the CA, but if that's what I have to do, I will do it. I'm just not really sure how to go about it, from what I've read people generally send DV (I think that's what they're called) letters to the CA about collections on their reports, but I'm not sure if that's still the proceedure for something that's showing as paid. They aren't trying to "collect" on the account, infact I've never heard from them at all. So I guess my question was more about how I should start trying to contact people, as in, should I send a letter or call, and how should I word it? Thanks again!

Re: Problem with Experian Report

chasmith — Fri, 26 Aug 2011 12:16:39 GMT

National Grid is in many places a regulated utility. I would try to get them to state in writing what they are telling you, and if they won't go to the appropraite state regulator.

Once you have their written statement that there was no balance and it was never referred, use that with the CRA to try to get it removed.