topic Re: 2 Collection Companies, 1 Collection. in Rebuilding Your Credit

2 Collection Companies, 1 Collection.

Anonymous — Sun, 05 May 2013 01:29:42 GMT

Hi guys! *waves* I'm looking to clean up my fiance's credit issues, and came across something he doesn't even remember. It's confusing me, that's for sure. The creditor is 'Emp of Franklin County LTD', for $213. Do1D is 4/08. Balance date is 12/12. It's supposed to age off in 2015. The CA is 'Northeast Credit and Collect', in Scraton, PA. This isn't a big deal - I'd just DV it and go from there. What's stumping me is there's another collection company, Commonwealth Fin Systems, claiming the same line. They're in Dickson City, PA.

What should I do?!

TYIA!

Re: 2 Collection Companies, 1 Collection.

RobertEG — Sun, 05 May 2013 06:29:09 GMT

A first debt collector can have their collection authority terminated in one of three ways.

If they are an assigned agent, they can withdraw or the owner of the debt can terminate their collection agreement.

If they sell the debt, the collection is terminated.

Upon termination of collection authority, the debt collector must update their reporting to show $0 under collection, and close the collection.

A new debt collector may then report if they obtain collection authority. That does not require the deletion of the prior reporting by debt collector 1.

Most likely, debt collector 1 is no longer in the game, and should update their reporting to $0, closed.

When debt collector 2 reported, that triggered their requirement to send dunning notice within 5 days, providing, among other things, the name of the current creditor.

That should identify who they are collecting on behalf of. Did they send dunning notice?

Re: 2 Collection Companies, 1 Collection.

Anonymous — Sun, 05 May 2013 06:42:06 GMT

Nothing is shown as closed, and he hasn't gotten any sort of notice that I'm aware of.

Re: 2 Collection Companies, 1 Collection.

Shogun — Sun, 05 May 2013 21:06:17 GMT

Send a DV to both of the CAs, one will most likely delete.

Re: 2 Collection Companies, 1 Collection.

Anonymous — Sun, 05 May 2013 21:10:08 GMT

@RobertEG wrote:
A first debt collector can have their collection authority terminated in one of three ways.
If they are an assigned agent, they can withdraw or the owner of the debt can terminate their collection agreement.
If they sell the debt, the collection is terminated.

Upon termination of collection authority, the debt collector must update their reporting to show $0 under collection, and close the collection.

A new debt collector may then report if they obtain collection authority. That does not require the deletion of the prior reporting by debt collector 1.

Most likely, debt collector 1 is no longer in the game, and should update their reporting to $0, closed.

When debt collector 2 reported, that triggered their requirement to send dunning notice within 5 days, providing, among other things, the name of the current creditor.
That should identify who they are collecting on behalf of. Did they send dunning notice?

I disagree. The credit reporting resource guide specificallys states they must delete their TL. Can you show me where it states otherwise?

Re: 2 Collection Companies, 1 Collection.

Anonymous — Sun, 05 May 2013 21:58:49 GMT

@Shogun wrote:
Send a DV to both of the CAs, one will most likely delete.

That's what I'm sending out in the post tomorrow! Thanks!

Re: 2 Collection Companies, 1 Collection.

RobertEG — Mon, 06 May 2013 02:15:22 GMT

There is no provision of statute or regulation that requires a debt collector to delete their accurate reporting of collection authority based on the subsequent reporting of another. Absent such a requirement, there is no basis for disputing theiir lack of deletion as an inaccuracy.

Since the Credit Reporting Resource Guide is a copyrighted publlication of the CDIA that is only available to those having credit reporting agreements with the CRAs or thos who are members of CDIA, I dont have a copy of the most recent CRA reporting manual, so cant speak specifically to the guidelines set forth therein.

However, any such instruction in the manual is a guideline, and does not have the force of statute or regulation.

If that were so, it would also eliminate all GW and PFD deletions based on payment of a debt, which are also contrary to CRA policy.

I suppose one could contact the CRA and ask them to delete based on that guideline, but they dont, in my opinion, have authority to delete accurate reporting based on their personal reporting preferences.

Perhpas contacting the prior debt collector and asserting their compliance with their credit reporting agreement could also be done if it is set forth in their agreement with the CRA.

Re: 2 Collection Companies, 1 Collection.

Anonymous — Mon, 06 May 2013 02:35:01 GMT

Ok. But what statute or regulation state they do NOT have to delete. I have never found anything other than something stating they do.

Re: 2 Collection Companies, 1 Collection.

swtneka — Mon, 06 May 2013 06:23:47 GMT

I'm having the same problem except CA 1 no longer exists. How do u DV them if they no longer exist?

Re: 2 Collection Companies, 1 Collection.

Anonymous — Mon, 06 May 2013 06:51:12 GMT

What do you mean they no longer exist? Went out of business?

Re: 2 Collection Companies, 1 Collection.

swtneka — Mon, 06 May 2013 06:56:25 GMT

i sent them a pfd and got the letter back saying return to sender address unknown. I then got a letter from a new CA a month later who hasnt reported to CR yet