topic Re: Collection Updated ... Any Recourse? in Rebuilding Your Credit

Collection Updated ... Any Recourse?

Anonymous — Sat, 30 Mar 2019 03:30:23 GMT

Hello All!

Long story short there is a collection on my file. Based on the written agreement between me and the creditor they were to remove the charge off and list it as paid/never late. Needless to say they didn’t and when I noticed it this week I disputed it.

Today I get a notification that my score dropped 39 points as the debt was “updated” and is showing 90 days late as of 3/2019 (with zero balance). I have no idea what to do. This is clearly inaccurate, I actually never even paid it, the company agreed to adjust it to a zero balance b/c of lack of policy on their part however; this was back in 2015. Any idea what I should do next? The credit union clearly isn’t going to do anything and it’s not due to be removed until 2022.

I did respond to the completed dispute to advise EX that the date is incorrect however; I’m not sure if they will do anything. If not any idea how long it will take my score to recover? This is just beyond frustrating!

TIA!

Re: Collection Updated ... Any Recourse?

gdale6 — Sat, 30 Mar 2019 14:24:46 GMT

@Anonymous wrote:
Hello All!

Long story short there is a collection on my file. Based on the written agreement between me and the creditor they were to remove the charge off and list it as paid/never late. Needless to say they didn’t and when I noticed it this week I disputed it.

Today I get a notification that my score dropped 39 points as the debt was “updated” and is showing 90 days late as of 3/2019 (with zero balance). I have no idea what to do. This is clearly inaccurate, I actually never even paid it, the company agreed to adjust it to a zero balance b/c of lack of policy on their part however; this was back in 2015. Any idea what I should do next? The credit union clearly isn’t going to do anything and it’s not due to be removed until 2022.

I did respond to the completed dispute to advise EX that the date is incorrect however; I’m not sure if they will do anything. If not any idea how long it will take my score to recover? This is just beyond frustrating!

TIA!

You have a piece of paper that agrees to remove it, write a letter to the CEO demanding its immediate removal or you will see them in court. Be sure to include copy of said letter with the demand along with copy of current CR. It should never have been sent to a collector and they need to get rid of their collector.

The Fico points will recover when the collection is gone or it ages back in time. Fico calcs off status date.

Re: Collection Updated ... Any Recourse?

Fx6cowboy — Sat, 30 Mar 2019 14:21:38 GMT

This is a breach of contract, draft up an affidavit... **research or see a consumer lawyer** explaining the details and facts. I would also CC your state attorney general of consumer complaints sending them the letter also but addressed to the CA. Send it certified mail return receipt giving them 30 days to delete or respond with a valid resolution, and if they do not sue their a$$ lol Hope this helps dont be scared of a CA, they prey on our anger and fustration... emotions make us do crazy things.

Re: Collection Updated ... Any Recourse?

Anonymous — Sat, 30 Mar 2019 14:23:47 GMT

Yes, I’ve done that and the only thing that happened was they “updated” it to show a paid chargeoff/90 day late as of March 2019. Regardless of the status the current date is 100% incorrect. I’ve also disputed with EX to no resolution. Is my only option to then contact an atty?

Re: Collection Updated ... Any Recourse?

Anonymous — Sat, 30 Mar 2019 14:28:38 GMT

Thank you! I’m definitely going to have to do something and you are right about the emotions and anger piece. To make it worse this is the only negative item on my credit and all this is over $154 which they wrote off bc they were supposed to close my account and didn’t. They assumed responsibility for the fees but refuse to actually make it right.

The letter I received about what would be updated came from the credit union CEO and still nothing has been done. It just feels like if they refuse and the CRA won’t do anything that you are stuck!

Re: Collection Updated ... Any Recourse?

gdale6 — Sat, 30 Mar 2019 14:32:43 GMT

CUs like banks have a regulator, you can certainly lodge a complaint with them as well but what it all boils down to is breech of contract at this point and that is actionable. I would first do what you can before going to a lawyer, when confronted with their own incompetence odds are they will kill off their collector and take care of the problem they created and agreed to correct.

Re: Collection Updated ... Any Recourse?

Fx6cowboy — Sat, 30 Mar 2019 14:33:25 GMT

I believe you said this is a collection account reporting a 90 day payment term. A collection account is by default a charge off and can not report terms. I would still send them an affidavit of facts. I would also send each reporting agency this dispute of a reporting error since FCRA section 623 touches on the accuracy of the information that is being reported. Get it nortized, I am very sure they will not want any part of that.

Courts like to see paper trails, this smells like a pending lawsuit.. they dont want none lol

Re: Collection Updated ... Any Recourse?

Anonymous — Sat, 30 Mar 2019 16:50:26 GMT

I wonder if I should take all my papers and head down to the corporate office and ask to meet with someone? The CO has a bank branch on campus so maybe it would be worth the trip, since all my certified letters aren’t doing anything.

Re: Collection Updated ... Any Recourse?

Anonymous — Sat, 30 Mar 2019 16:58:36 GMT

Yes, so it shows as paid in full after chargeoff with 90 day late reporting as of 3/2019.

You’re saying this is clearly not accurate right?

Re: Collection Updated ... Any Recourse?

gdale6 — Sat, 30 Mar 2019 19:32:27 GMT

@Anonymous wrote:
Yes, so it shows as paid in full after chargeoff with 90 day late reporting as of 3/2019.

You’re saying this is clearly not accurate right?

Correct, as long as you have that letter saying they would do what you posted. If they ate it they should have never have engaged a collector and a collector/JDB cannot report anything like an OC can. Yeah I like your previous post about going to the local office, you need to get with the branch manager and show that person the whole thing, I would not mention a suit immediately but see how that person reacts to all the proof first. Make sure that you have additional copies of everything at home before you go some rude people can grab papers and destroy them though that would be a huge mistake.

Re: Collection Updated ... Any Recourse?

Anonymous — Sun, 31 Mar 2019 02:07:14 GMT

Thank you! I am going to gather everything up this weekend and try to go in on Monday afternoon. They definitely removed the balance and marked it as a paid chargeoff (which isn’t what they agreed to). I’m guessing b/c they do their own collections it’s no issue for them to report, so they do. Beyond frustrating.

Re: Collection Updated ... Any Recourse?

RobertEG — Sun, 31 Mar 2019 16:45:44 GMT

I highly recommend that you consult an attorney before threatening to sue for any "breach of contract."

There are clearly substantive legal issues with asserting that they are under a binding legal contract that requires deletion.

It is not, as some advise, and open and shut breach of contract.

First, a party cannot establish a contract that includes provisions that are contrary to law.

Reporting paid, $0 balance, no delinquencies, could be considered by them as being knowingly inaccurate reporting, and thus a violation of FCRA 623(a)(1).

That is different than agreeing to delete all reporting, which would not knowingly report inaccurate information.

Second, in order to establish a binding contract, both sides must exchange something of value.

Since you apparently did not pay the debt, what did you agree to do, and then carry through on, that provided something of value to the creditor?

That one party has offered something of value (credit reporting changes beneficial to the consumer) that they later rescind before the other party offers or provides something of value may not comprise a contract that is breached by the party then rescinding its prior offer.

Third, there must be a clear meeting of the minds prior to any provisions being executed. If they decided, after a prior and erroneous statement that they were going to do X, and later determined that X was not correct or was not appropriate, and notified the other party, then the new meeting of the minds would transcend any prior offer by one party.

A contract offer does not live in perpetuity.

You have numerous legal issues that should be reviewed by an attorney before you threaten civil action.......

Re: Collection Updated ... Any Recourse?

Anonymous — Sun, 31 Mar 2019 16:51:43 GMT

Thanks for the input. I didn’t have any intention of threatening suit. The bottom line is they charged fees to an account that I have documentation was to be closed PRIOR to the fees being assessed. The $154 was for bank fees, they didn’t pay any transactions on my behalf. They willingly removed the fees when I brought the error to their attention however; they refused to remove the account from my report.

If you really want to get down to it, reporting paid after charge off is inaccurate as well as I never paid them.