topic FDCPA Violations and Does it matter HOW a paid collection shows on my reports? in Rebuilding Your Credit

FDCPA Violations and Does it matter HOW a paid collection shows on my reports?

Anonymous — Thu, 11 Dec 2008 15:24:20 GMT

I have a paid off collection (Paid in Full but incorrectly shown as settled in full, but that's another story!) ... It is showing on Experian as an "Account" just like a Credit Card, Mortgage or Home Loan. It is showing on Transunion under "Collections"

1.) Does it matter to my FICO?

2.) Is one or both of these reason enough to dispute again? The last time I tried to dispute this incorrect collection they said I couldn't dispute again as it had already been verified by the Collection company, so I'm not even sure if or how to do it again?

Message Edited by smo65d11 on 12-11-2008 07:24 AM

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Wed, 10 Dec 2008 23:04:37 GMT

1. yes it does. collections are counted negatively, regardless of their status (paid, unpaid), for the full lenght of CRTP

2. please provide all the details (minus the personally identifiable information) as published on your CRA credit report (not myFico, not TC, not other 3rd party reports) and can give you an opinion

In case of inaccuracies, I would not dispute with the CRA, I would request the CA to fix immediately or file a complaint and\or lawsuit for FCRA violations.

good luck!!!

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Wed, 10 Dec 2008 23:25:50 GMT

So you are saying that it is better that it is being shown under Accounts versus Collections?

They show this way:

Experian

Palisades Collection LLC, their address, account #, original creditor AT&T Wireless.

Status: Paid in Settlement

Date opened: 8/05

Reported Since 9/08

Date of Status 9/08

Last Reported 9/08

Type Installment

Terms 1 months

Monthly payment $0

Responsibility Individual

Credit Limit/Original Amount $1,238

High Balance, Recent Balance, Recent payment all show NA

Creditor's Statement: Account Legally paid in full for less than full balance

Account History: Collection as of Sept 2008

Transunion

Palisades Collection LLC, # (gives an account number), address

Balance 0

Date Updated 11/08

Original Balance $1,238

original creditor AT&T Wireless

Past Due 0

Pay Status Payment after charge off/collection

account type Open account

Responsibility Individual account

Date closed 6/07

Date paid 6/07

Loan Type Open account-Factoring Company account

Remark-dispute resolved, customer disagrees

Date placed for collection 8/05

estimated date that this item will be removed 6/10

I already have an attorney pursuing them for FDCPA violations, but it could take months to resolve, and no guarantee she will be successful in getting them to remove themselves from my reports.

thanks for you assistance, this is my last collection and it will just not go away! Equifax dispute came off fine, these 2 are like leeches!

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Wed, 10 Dec 2008 23:42:48 GMT

I have just served them a lawsuit.... they are some of the worst...

here is my take:

Experian

Palisades Collection LLC, their address, account #, original creditor AT&T Wireless.

Status: Paid in Settlement

Date opened: 8/05 <-- is this date correct? or is it the date the account moved to Palisades? it the latter you have a FCRA violation for inccuracy in reporting

Reported Since 9/08

Date of Status 9/08

Last Reported 9/08

Type Installment <-- do you have an installment contract with them? if not another FCRA violation

Terms 1 months <-- do you have an agreement to pay them within 30 days? if not another FCRA violation

Monthly payment $0

Responsibility Individual

Credit Limit/Original Amount $1,238

High Balance, Recent Balance, Recent payment all show NA

Creditor's Statement: Account Legally paid in full for less than full balance <-- what did the settlement agreement state? there might be a breach of confidentiality here

Account History: Collection as of Sept 2008 <-- was it still in collection in 09/2008 or was it paid in 06/2007? if the latter, another FCRA violation

Transunion

Palisades Collection LLC, # (gives an account number), address

Balance 0

Date Updated 11/08

Original Balance $1,238

original creditor AT&T Wireless

Past Due 0

Pay Status Payment after charge off/collection

account type Open account <-- do you have an Open account with them? if sold by AT&T, it should be closed and is another FCRA violation

Responsibility Individual account

Date closed 6/07

Date paid 6/07

Loan Type Open account-Factoring Company account <---hmmm, I smell another FCRA violation...

Remark-dispute resolved, customer disagrees

Date placed for collection 8/05

estimated date that this item will be removed 6/10

If I had these reported on my CRs, I would immediately file complaints with the BBB, with your state and the NJ's AG offices, and the FTC for blatant misreporting in violation of the FCRA and the spirit of the FDCPA.

Then, I would sue them in Small Claims court for the max allowed, since approx. $6,000 of statutory fines here...

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Thu, 11 Dec 2008 15:22:08 GMT

Would this issue be something that I should send to my attorney to add onto my existing case, or would it be something that a new case would need to be started? Is it something that I could do myself? I have probably a dozen credit reports from each CRA showing similar info, I have disputed over and over again, included the Paid in Full letter that the collection attorney representing Palisades wrote. The credit bureaus said that the collection attorney had no legal right to write the letter and rejected it, and Palisades says it was written in error by an ex-employee before she was terminated.

In short, I paid the debt in full to a collection attorney working on behalf of Palisades, no settlement was made. But when the collection attorney paid Palisades, they kept a portion back for themselves, and reported that it was settled.

I did not settle, I paid every penny billed to me, and this is wrecking my score and making refinancing my 2 properties impossible. They rejected the first 2 settlement requests from my attorney, so I just don't know if that means it will be going to court?

any feedback and reports from anyone who has done these types of lawsuits would be greatly appreciated!

Message Edited by smo65d11 on 12-11-2008 07:22 AM

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Thu, 11 Dec 2008 16:39:46 GMT

I can't give you legal advice as how you should proceed. You already have an attorney and that person is certainly more qualified than me. having said that, there is nothing that prevents you to go after them with the AGs in boths states, the BBB and FTC indipendently from the other matter. I'm not sure if you can fime a separate lawsuit, if you already have one running for the same matter - you might have to amend the existing one.

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Thu, 11 Dec 2008 17:34:12 GMT

thank you for your help!

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Thu, 26 Feb 2009 16:49:03 GMT

I thought I'd post the settlement that I just signed in my case against Palisades Collections. They settled to avoid going to court, because I was NOT budging.

here is what the "release of all claims" says ...

SETTLEMENT AGREEMENT
AND RELEASE
WHEREAS, there is now pending in the United States District Court for the Northern District of Indiana an action captioned (me!) v. Palisades Collections Case No. (blah blah) in which (me!) alleges that Palisades Collections is liable for, among other things, violations of the Fair Debt Collection Practices Act (the “Lawsuit”);
WHEREAS, it is the desire of the Parties to resolve all disputes, asserted or unasserted, arising out of, or in any way related to any acts, failures to act, omissions, misrepresentations, facts, events, transactions, occurrences or other matters set forth, alleged, embraced by, or otherwise referred to at any time in the Lawsuit;
NOW THEREFORE, in consideration of the Recitals and mutual promises contained herein, and for other good and valuable consideration hereby deemed received, the Parties agree as follows:

TERMS OF AGREEMENT
1. Palisades Collections shall pay a sum total of $3,000 to (me) and her attorneys, (my lawyer) $500 under the FDCPA, $2,500 in attorneys’ fees and court costs. Palisades Collections also agrees to issue an instruction to all credit reporting agencies to whom it reports to delete the subject trade line. (me) shall promptly cause the case to be dismissed with prejudice and with no further action to be taken by Defendant.

2. Except for the rights and obligations created by this Agreement, Plaintiff for himself, his heirs, executors, administrators, and successors and assigns, hereby releases and forever discharges Palisades Collections, its agents, servants, officers, directors, employees, shareholders, from any and all claims, demands, damages, actions, causes of action or suits of any kind or nature, known or unknown, now existing which are based directly or indirectly upon facts, events, transactions or occurrences related to, alleged, embraced by or otherwise referred to at any time in the Lawsuit.

3. The Parties hereto further agree that this Agreement has been fully read and understood by them, and that each of them has received independent legal advice from his or its respective attorney(s) as to the effect and import of its provisions. The Parties further agree that this Agreement is being entered into for the express purpose and intention of making and entering into a full and final compromise, adjustment and settlement of all claims which were or could have been asserted in the Lawsuit, whether or not referred to therein.

4. The Parties agree that this Agreement constitutes a good faith settlement of the Lawsuit and acknowledge that it is entered into freely and voluntarily.

5. This Agreement constitutes the sole and entire agreement between Plaintiff and Defendant, and supersedes all prior agreements, negotiations, and discussions between the Parties, with respect to the subject matter covered hereby.

6. This Agreement may be executed in counterparts.

IN WITNESS WHEREOF, this Agreement is executed as of the date and year first above indicated.

I specifically asked my attorney

"does this say anywhere that I can't talk about the case? I am a member of several websites where I have been posting about this matter."

this morning, and he said

"This release does not."

so here ya go! I'll post again when I receive my settlement amount, and when they credit bureaus are corrected.

Re: Does it matter HOW a paid collection shows on my reports?

Anonymous — Sun, 02 May 2010 16:19:47 GMT

Re: FDCPA Violations and Does it matter HOW a paid collection shows on my reports?

RobertEG — Fri, 27 Feb 2009 04:08:51 GMT

Dispute again.

This time, include as part of your dispute the process they used to verify, and INSIST under FCRA 611(a)(2)(B) that they provide “all relevant information regarding the dispute” to the creditor, and further that they disclose to you under FCRA 611(a)(6)(B)(iii) “a description of the procedure used to determine the accuracy and completeness of the information.”

Specifically, asked them if they used only E-OSCAR, and if they forwarded all of your supporting information to the credtor in the dispute process.

A consumer dispute process under FCRA section 611(a) is a two-stage process. The CRA first receives the dispute, and then is required to provide “all relevant information” regarding the dispute back to the furnisher of the data (the OC or CA who posted with the CRA) within 5 days of the consumer dispute for their investigation. The data furnisher is then required to report their results back to the CRA for their final reinvestigation and decision, to all be completed within 30 days of filing of the consumer dispute with the CRA.

The rub is that the CRA, when forwarding your dispute to the creditor for their investigation and verification, does not forward all the supporting information you provide in your dispute. So all of the stuff you are sending them is probably not even being forwarded back to the CA as part of your dispute. The CRA uses a system called E-OSCAR to forward the dispute to the creditor. Your dispute is reduced to the three-digit code, which provides little to the creditor. E-OSCAR does permit (but does not require) the CRA to also include a brief one line summary of your dispute, but the documents are not forwarded to the creditor. Only the brief E-OSCAR request.So when it comes back from the creditor as “verified,” all it usually means is that the creditor/CA verifies that they own an interest in the account, and little more.

Check out the following congressional testimony for a full discussion of this travesty:

Testimony by the “National Association of Consumer Advocates”, titled “Fair Credit Reporting Act: How it Functions for Consumers and the Economy,” dated June 19, 2007, and submitted by Mr. Leonard A. Bennett.

(start at p. 18 of that testimony)

Message Edited by RobertEG on 02-26-2009 07:54 PM

Message Edited by RobertEG on 02-26-2009 07:56 PM

Message Edited by RobertEG on 02-26-2009 08:08 PM

Re: FDCPA Violations and Does it matter HOW a paid collection shows on my reports?

Anonymous — Fri, 27 Feb 2009 15:06:43 GMT

thank you, I couldn't be happier!

This has been a 2 year process, and it drug on for much longer than I ever dreamed. If I had settled for paying less it would have been different, but I DIDN'T, I paid every red cent in full because they told me they would remove it, and they lied.

The only thing that worked with Palisades was getting an attorney who took my case on contingency ... and even then they ignored the attorney for months ... I don't mind that the attorney received 5X what I did, the fact that Palisades lost and I won is all that mattered to me! Of course that $500 is going straight on my credit cards to continue paying them down!

What state are you in? I can refer you to my attorney if you need one, they are in Illinois but I live in Missouri, I think "districts" matter more than states?