Collection Agency Problem

[Anonymous]

I recently discovered after two years of very hard work to clean up my credit, no lates, etc, that I have an unpaid collection on my credit report. I immediately contacted the agency, and was told it is a two year old medical collection that they inherited last year. They claim to have made a diligent effort to contact me, but as it turns out, they wrote to and old PO address, and called an old cell phone number, none of which reached me, of course. This agency advertises their "skip tracing" capability, etc, but obviously didn't try to find me very hard. If you "Google" my name, I'm the very first item that returns! They tell me Googling is not part of their "procedure". I suggested if they remove the report, I'd pay them. They refused. I have subsequently filed complaints with the three bureaus, and based upon some research elsewhere, sent them a letter requiring they prove the debt is legitimate, and they have the right to collect it; in meantime, they are to cease all collection efforts, to include removing the report, as that constitutes a collection effort. I copied the bureaus on this correspondence. Also, I reported them to the FTC, and California agencies. Unfortunately, it is a bit tricky where to report them, as I am in California, but they are in Massachusetts. I would like to take them to small claims court, as well, but have no idea in what jurisdiction.

I'm very pissed. What else can I do to these guys, and what, if any rights do I have to remove this report. To me, I should have been given a chance to pay the debt. It is interesting they have less interest in getting paid (they turned down my offer of payment) than in reporting me, like it is some sort of perverse thrill for them. They claim I actually received all the letters, and calls, and am just lying to them; and, if not, then it is my fault I didn't pay $40/month to have my PO forwarded for two years, and/or didn't notifiy the DR. I moved, didn't pay the bill originally (I moved just after this medical procedure, and by the time insurance did their thing, it had been months).

Kind appreciation for any good advice.

[llecs]

Avoid disputing with the CRAs in the future. I'll just come back as verified each time.

If you file suit, you can do so in Cali without any problem, I'm sure. If they claim they sent letters and calls and try to use that against you in court then they would have to prove that - recorded conversations and CMRRR letters to you.

If you haven't done so, try to DV them using any of the letters found in this forum. Wording of the letter is important.

Never talk to a CA over the phone. Likely all conversations have been recorded and can be used against you in the future. It is also each to get frustrated when talking on the phone and emotions can lead to mistakes.

From what I read, they didn't do anything wrong, other than lie about contacting you.

I would DV them ASAP. Their address is easily found on your CRs. Be sure to leave an "reply to" address in your letter so as to send a response. At the same time, I would save the money to offer a PFD if validated and if you agree to the amount owed. I would also contact the OC (Dr.) and ask for a rundown of the costs, etc. Some have had success in removing medical collections by dealing directly with the OC. Remember, any DV response with a medical collection would not include the details of the medical procedure, only a code. If the CA does include details, then they violated HIPAA.

I would also research Cali's laws. Make sure that the CA has a right to collect. However a quick check shows that Cali does not require licensing. I would check MA's though, assuming the CA is from MA. You can also check requirements for CAs in collecting via www.leginfo.ca.gov. I'd study those statutes forwards and backwards and apply what the CA says or does to those standards.

[atlastontheroad]

Another perspective, albeit from perhaps less experience than Ilecs': you may have success with the original provider of services if it's a medical you're ready and willing to pay.

If the provider assigned the debt, they may be willing to pull it back and allow you to pay it.  Once it's pulled back and paid to the provider, the CA can't report.  If the provider sold it to the CA, yep, you have to deal with the CA, from all reports here.

Your paper trail of moving and changing phone numbers may help with both.  My question is: If your current address is listed on your CRs, did the CA actually try and contact you? 

I have no ideas what the standard of due diligence is for CAs and would love to hear from someone who knows.

atlast....

[Anonymous]

I would have replied sooner, but have had problem with the forum allowing me to reply. I have previously sent a DV (Debt Verification) letter to the agency. Based upon how I read the law, they need to cease all collection activities, including withdrawal of a credit bureau report, during this process. However, to date, they have not replied to my DV, nor have they withdrawn their report with the Agencies. I would sue them, but am confused over the matter of jurisdiction, whether that be Los Angeles, where I live, or Boston, MA, where they are located; or, even Palo Alto, CA, where I lived when the debt was incurred originally. Plus, to sue, if I need to retain an attorney, this will get very expensive. I wonder if this is something that could be handled in small claims court, provided I could resolve the matter of jurisdiction. So far, this report on my credit has prevented me from obtaining a credit card, which is damages, right? However, I need the court to force them to withdraw the report, not just pay me damages, and I don't know if small claims court can do that. I should think a real suit would cost thousands of dollars, which I can't do right now, and could drag on for years. This truly feels that they can do as ever they want, and get away with it, regardless of the law, which is quite clear. Enforcing the law is another matter. I presume their refusal to reply to the DV (they have time yet) would only mean I have to sue them, but little else, right? It would be great if there was a government agency which would force them to comply, but I have no idea which one would do that, if any.

Regarding the suggestion to save the money to pay them off as a settlement, the first thing I did was to offer to pay them in full (without even a verification, stupid me) if they would eliminate the report to the agencies. They flat out refused. Evidently they are more interested in punishing me for their error, than in getting paid!

Very frustrated!