topic Re: Credit Collection Services - Not Authorised to report to CB in Rebuilding Your Credit

Credit Collection Services - Not Authorised to report to CB

Anonymous — Thu, 05 Jul 2018 23:57:05 GMT

Hi folks,

I was sent a notice from CCS for 2 small invoices (both <$10) that had fallen through the cracks, from Quest Diagnostics. I paid them with OC and they have not yet turned up in any of the CR's (they were sent to collections just about a month ago and paid off with OC within days of being actually sent to collections). I actually paid one of the invoices before the notice arrived in the mail

Now CCS insists that they have not received authorisation to report to the CB's and now that the debt was pulled back from collections, they won't report it going forward

However, Quest is more inconsistent based on who I talk to. One rep said they will not report for such a small amount, another said the CA might report it and does not need any "authorisation"

From what I understand Quest did not sell the debt to CCS, just assigned to them for collection activity

How much of a chance is there for these to turn up on my CR's in the future? Has anyone else heard CA's needing authorisation to report?

Re: Credit Collection Services - Not Authorised to report to CB

RobertEG — Fri, 06 Jul 2018 00:07:11 GMT

The only "authorization" needed by a debt collector to report their collection activities to a CRA is that they obtained collection authority, either by way of assignment from the creditor, or by way of their purchase of the debt.

A debt collector reports the fact that they had or have collection authority, and can choose to first report a collection even after the debt has been paid. They would have to include in their reporting that the collection is closed, paid, with a $0 balance, but could choose to do so.

Most debt collectors report collections as a business practice to foster collection of the debt.

Once a debt is paid, there is no longer a substantive business purpose of fostering collection of the debt, so they normally will not go to the time and expense to report to a CRA. However, they are not legally precluded from doing so.

If only the creditor is speculating on possible reporting, and not the debt collector, then I would not consider it likely that the debt collector will do so.

Re: Credit Collection Services - Not Authorised to report to CB

Anonymous — Fri, 06 Jul 2018 00:18:19 GMT

Thanks Robert, makes sense and I understand that there is nothing legally stopping them from reporting to the Credit Bureaus at any point in time, though it may not be seriously worth it for them for an already paid <$10 collection

I was not quite sure what you meant by "If only the creditor is speculating on possible reporting, and not the debt collector..."

I talked to reps with the OC and 2/3 said they won't report and check with the collection agency(and, as you stated, the agency does not need any authorization) and 1/3 said we wont report for such a small debt, period

I talked to 3 reps at the Collection Agency and they all said that they have not reported as they did not receive authority to report and that they were informed by the OC that the debt was paid in full and it was taken off their hands

On a related note, I am still within my 30 day DV window. Should I send a mail anyway confirming what was discussed with the CA over the phone, since there is no written evidence of this apart from my oral conversations

Re: Credit Collection Services - Not Authorised to report to CB

RobertEG — Fri, 06 Jul 2018 16:44:58 GMT

The effect of a timely DV is that it imposes a cease collection bar on the debt collector, which then remains in effect until such time as they choose to send the requested validation. A DV, even if timely, imposes no requirement for any response.

With the debt having been paid, the debt collector is no longer able to continue any collection activities, making a DV request moot., as it They can simply deposit it in the trash, as they are no longer concerned with any cease collection bar.

Even if they chose to respond, you are not contesting the legitimacy of the debt, so there is no basis for a dispute of the debt, in whole or in part, which is the prerequisite for any DV, as explicitly provided under FDCPA 809(b). They can simply state that the debt is verified,and its current amount is $0.