Collections - Removing From Credit Report

[Anonymous]

Alright... I need help.

I am recently graduated college student and have done well with my credit score. It was 771. Then, I got a collections notice on my report. Why? Because of a $66 medical bill from two years ago, sent to my parents (whom pay those sort of things) at home, they never paid (for whatever reason, maybe they never got mailed or received the call, whatever). So, i am stuck with something that I had zero control over. They didn't even send anything to me. I never knew. It sucks. My credit score now? 675....

So, I was freaking out and called the collections agency. They said the would mark it "immediate deletion" and so I paid. 

Now I'm thinking I did the wrong thing... ? I wanted something in writing about this. I told them that. The guy said to send them a request to get this receipt and all of it in writing, and they'd do so. Now I have read I should not pay until they tell me, in writing, it'll be deleted? They will lie to get you to pay, and so on. Do you think that this is the case? I am really, really hoping it is not because I don't know what to do if it doesn't get removed.  

I'm so upset and angry. I'm responsible and have been since I got my first credit card at 18. I never miss a payment. I stress about my credit score. Now, after all that work, it drops nearly 100 points over something I had ZERO control over? It blows. 

What would you do? Should I request the writing even though I already paid? Will they just blow me off or something? It's National Recovery Agency, if that matters. And what if they do blow me off AND don't mark it for deletion. That's worse case scenario obviously... are there any options for me then? Because I really don't believe it accurately reflects my credit worthiness whatsoever. I guess the bill was under my name and my responsibility, but then why not send it to me at school? How am I supposed to just know about these magical bills if I never receive them? And the collections agency never notified me. They just put it on my credit report. If I wasn't one to care, I wouldn't even know about the collections!

Anyway, I apologize for the long message. Any help appreciated. Thanks.

[Anonymous]

Hi and welcome to the forums.

Were you a minor when you went to the doctor.  Did you sigh as the responsible person?

How long ago did you talk to the CA?  Sometimes it just takes time for the account to actually be deleted.

[Anonymous]

I was not a minor. I was a student though, if that matters. And it was my parents' health insurance. I was, I believe 21. I don't really know if I signed as being responsible or any of that. Normally, things are just billed home, presumably to my parent's and their health insurance. I always thought that, their insurance, they must pay. But I guess once I turned 18, it became my responsibility to cover what the insurance didn't and not the insurance holder? I really am still not sure. 

And I talked to the CA this week (few days ago). They said that they would take 30 days to send the immediate deletion out. And that credit agencies could take up to 90 days to get it off.

Now, my worry is that he could have been lying. They could forget. I could be left with just a "paid" notice and nothing removed. Then what? I'll have nothing in writing and if I call to ask they might not care because I already paid. I have no leverage.

I'm hoping they honor what they told me over the phone and that all works out. I'm just worried for a worst case scenario. 

[RobertEG]

You have a legal issue of your obligtion to repay a debt on a contract to which you were not  a signatory. But you. nevertheless, paid it.

The issue, as I see it now, is whether their prior commitment to you was a legal acceptance of a payment for agreed deletion.

[Anonymous]

I am sorry this has happened to you.  My advice would be to contact the collection agency and ask them about the situation. 

I had an experience similar to yours with my sister.  When I contacted the collection agency they sent me a letter that stated the mistake and sent the information to the credit bureaus as well.  In my research when a collection agency tells you that they usually stand by what they say to you.

If you have anymore questions I will log back on later and answer them for you.

TheTaxMan

[Anonymous]

---

@RobertEG wrote:

You have a legal issue of your obligtion to repay a debt on a contract to which you were not  a signatory. But you. nevertheless, paid it.

The issue, as I see it now, is whether their prior commitment to you was a legal acceptance of a payment for agreed deletion.

---

I am a bit confused about what you said towards the end... if you could clarify that?

I guess maybe I should not have paid, but everything I read seemed to see that disputing would be a huge hassle and paying could be better. Especially when the collections agency told me they'd make it for immediate deletion. 

I have been very busy lately studying for my CPA exam and haven't really wanted to think about this so have yet to send a letter asking for paperwork from them. i'm crossing my fingers they actually just ask for this to be deleted with collections agencies. Here's to hoping they stand by their word.

If not, I would first go to them and ask them delete once again? How long will it take? At least a month+ to be recognized and deleted by credit agencies, right? And if that fails, I read about a goodwill letter? Maybe that would get credit agencies to delete it... under a worst case scenario.

Ultimately, I don't buy much on CC anyways either. I just wanted to keep it high so that when I needed it for buying a house... it would be great and could get me a good rate, saving me money. But now it's dropped 100 points. So frustrating...

[RobertEG]

Sorry for the cryptic nature of my last response.

I will elaborate on what I think happened, and what you could do.

First, the issue of how did it ever end up in your credit file if you were not a signatory to the contract that set the obligation for payment of the debt?

Legally, it should not.

Debt collectors, in the distant past, relied primarily upon traditional means for collection, such as collection (dunning) notices, and legal action, to pursue debt collection.  But, with the advent of consumer access to credit reports and credit scoring, their primary tool now is just posting to your CR, which hurts you immediately.

They have been known to report a CA to a CRA using the broadest information possible, such as last name and addess, thus resulting in CRA posting of information to your credit file upon which you are not even an account signatory.  They hope that, in situations similar to yours, the party will be intimated, and just pay.

They might then ignore their obligation to promptly provide you a written collection/dunning notice within 5-days of posting to your CR, which is required under FDCPA 809(a), which is what they apparently did in your case.  That makes a rat smell much more like a rat. 

So you have two legal issues before payment.  First, the legality of their posting to your CR, and second, their failure to advise you of that posting by sending you timely dunning notice.

Then, you called them, listened to their song and dance promises, and paid them without prior wriiten contract on PFD deletion..  You thought it was payment offered in exchange for full CR deletion, but they did not delete.  So now, you have a he-said, she-said dispute over what was promised, vs what was delivered.  With no written documentation of their prior acceptance of payment in exchange for their CR deletion, you are at a CRA reporting standstill.  That is why we have courts.

You can make another attempt at getting the CA to delete, but if that does not work, then you can bring legal action against them on three grounds, namely (1) you had no initial responsibility for the debt, (2) they violated FDCPA 809((a) by not providing you with proper notification of their collection of the debt, and thus providing you the DV righst of FDCPA 809(b), and (3) you reached an oral contract with them for deletion that they have not abided by.

Since collections remain in your CR even after payment of the debt, you still have a cause of legal action against they, even though paid.

[Anonymous]

Okay, I understand completely now. Thanks for the post.

I have some good news though... my score went back up! Why? They followed through and it was deleted. So, I am very thankful. 

I can see now that I went about it wrong (despite getting lucky) and that they really just attempted to intimidate and get what they wanted. Fortunately, they followed through on promises though.

Now, here's to hoping I have no more of these odd collections to haunt me and that future bills, now that I'm out of school, employed full time, and old enough for everything to be sent to me... I will be able to handle it all and keep my credit clear. 

And actually, my score went from 771 to 675 to 779. It is sort of crazy that the $66 long overdue payment dropped me nearly 100 points and then when it was gone sent me back up over 100 points.

Anyway, appreciate the posts, and will continue to keep what you have said in mind RobertEG, it's good information to know.