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Collection posted AFTER payment

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Anonymous
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Collection posted AFTER payment

Hello everyone! I need some help. I'm new to the US, and I've got a two-year credit history, trying to do it as best as I can.

 

I just got my credit report from Equifax, and it appears a collection filed by CAINE & WEINER on April 29, 2017. The original creditor was Progressive Insurance.

 

It was for an amount of $264.

 

They contacted me on January 2017, before they put the collection, so I made an arrangement and paid them in three installments, two for $92.00, and one final of $94.80, totalling $278.80 (collection plus processing fees).

 

Now, I paid that account on January and February 2017, but they reported the collection AFTER I payed the entire amount due, on April 2017.

 

Can they report an account that was paid in full AFTER the payment was complete? How can I dispute this? Do I contact them, or do I go directly thru the CBs? I've got my statements stating the amounts and the dates of each payment.

 

This is my only collection, my credit score is in the 700s, but I can't get anything because of this. It was reported to Equifax and Transunion, not to Experian.

 

Thanks!

Jaime Q.

Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Collection posted AFTER payment

I would talk to an consumer attorney.     It may be time to play violations for $1,000 alex.  If it was pof before it was reported I think it sounds like a violation. If it's a violation they will be on the hook for  for your attotney fees, their attorney fees and the settlement usually $1,000

Message 2 of 8
JVille
Valued Contributor

Re: Collection posted AFTER payment

Who did you make the payment arrangements with? Progressive or the Collection Agency?
Message 3 of 8
Anonymous
Not applicable

Re: Collection posted AFTER payment

Directly with the CA.

Message 4 of 8
Anonymous
Not applicable

Re: Collection posted AFTER payment

I had collections from Progressive as well.  I don't remember what collection agency they were with and I eventually paid, but they did delete them.  I could be wrong, but I don't think there is technically anything wrong with them reporting it after it was paid, since the CA already had collection authority it is an accurate reporting of a past debt.  Now if Progressive still had it and then they reported it, that would definitely be an issue.  Have you tried speaking with the CA about them deleting the reporting?  Mine were easily deleted after I paid.  If I remember correctly, the CSR even asked me if I wanted them to be removed!  At that point I would have never thought to ask.

Message 5 of 8
JVille
Valued Contributor

Re: Collection posted AFTER payment

I agree and be sure and be very very polite. The goal is for this person to want to help you. They get yelled at and abused verbally all day long so being super nice is Vital.
Tell them your understanding is if you paid right away and paid what you both agreed to that the CA would not report the Collection. Remember be super nice!
Message 6 of 8
RobertEG
Legendary Contributor

Re: Collection posted AFTER payment

There is no prohibition under either the FCRA, which relates to credit reporting, and the FDCPA, which governs debt collection practices, against the reporting of a collection after the debt has been paid.  What is required is that the debt collector have had legitimate collection authority at some point in time, either by way of assignment from the owner, or by their having purchased the debt.

 

What is required under FCRA 623(a)(2) is that reporting must not knowingly be inaccurate.  Thus, if reported after the debt is paid, the reporting must show that the collection is now paid, and the current balance under collection is $0.

 

An analogous reporting situation would be a creditor updating their reporting after a debt is paid to accurately reflect the full, prior payment history, reporting, for example, for the first time, that the debt was previously subjected to a charge-off.  That updates the reporting to more accurately and completely provide payment history, and is not a violation of the FCRA.

 

They normally will not report after payment of the debt for practical, not legal, reasons.  Most debt collectors use credit report as one part of their arsenal and procedure to obtain payment of the debt.  Once a debt is paid, there is no longer a business purpose in reporting, and they will often choose not to do so.  However, reporting still has legitimate purposes in the larger scheme, as it provides a more complete consumer history that is of potential use to others by pull of your credit report.  That is the reason why CRAs have a clear credit reporting policy that furnishers not delete reporting based on payment of the debt.

 

Even though there is no specific statutory prohibition against reporting after the debt has been paid, a legal prohibition can still be established by way of contract agreement between the parties.  If the consumer makes a pay for not reporting offer that is accepted by the debt collector, it establishes a civil contract between the parties that becomes binding once the consumer lives up to their contract terms by paying the debt.  Thus, if concerned about potential reporting after a debt is paid, the consumer can make a pay for not reporting offer prior to paying, and establish a binding legal prohibition against subsequent reporting.

Message 7 of 8
Anonymous
Not applicable

Re: Collection posted AFTER payment

Thanks to all for your suggestions and explanations!

 

I called them today, explained the situation. They transferred me to the area working with Progressive (inside the CA), I explained the situation, and she told me that she deleted the account! So it will be updated within 30-days, like nothing happened.

 

I'm happy! Now waiting until it update in the CBs so I can see a huge bump in my score and to get new cards.

 

Thanks to everyone for the help!

Message 8 of 8
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