Disputed a discrepancy but it stayed!

[Meachem]

Howdy folks.  A while ago I recently disputed a discrepancy on my report. An account was sent to collections, but before I got a letter from collections I had already paid off the balance in full.  It just happened that way in the same week.

Anyway, the place is reporting that the account was charged off with a sizeable balance remaining.  I called the collections agency and they say they agree I paid in full and provided a letter saying as much.  I tried disputing it with Equifax and they say they investigated but ruled against me.

They investigated how?  I wasn't given an opportunity to provide a letter nor did they tell me how they investigated and why they ruled against me.  Now when I try to dispute it again they say they won't cause they investigated once already/

What's my next step?  I would love for this to come off.

[Noah_Bodie]

Is the collection agency reporting to the credit bureaus or just the original creditor? And was this an outside collection agency, or just the inhouse collections department with the original creditor? When you disputed with Equifax, was this online or in writing?

[Meachem]

It's the creditor reporting it.  The collections agency was an outside contrator in another state altogether.  The dispute was online and I was never requested to provide any other documentation.

[Noah_Bodie]

What's the date on the letter you received stating it's going to collections?

If you paid by check, can you access the canceled check to see when it cleared?

If you paid over the phone, that's still OK because your bank or credit card statement would show when payment cleared.

Gather that up, then dispute in writing with Equifax. Include ONLY a copy of the letter from the collection agency--the one showing the account is paid.

Send the letter Certified Mail, Return Receipt Requested, save a photocopy of your signed letter, and put a reference line at the top of the letter with the CM number.

CERTIFIED MAIL xxxx xxxx xxxx xxxx xxxx xxxx

Save your CM receipt, green card when it comes back, save your USPS receipt (which will have the CM # on it). Along with the photocopy of your letter, that's 4 pieces of evidence to bang on Equifax with--if needed.

What state are you in? Some states have stronger consumer protection laws than that afforded under federal law.

Should keep you busy for now.

[Meachem]

It's from several years ago.  It was paid by check but that check is no longer accessable as it was so long ago and my bank doesn't give checks back anyway.  I would have had to request a copy of the check soon after it was cashed.

Who would the correspondance even be addressed to?

[Noah_Bodie]

Check with your bank. Many banks have been imaging checks for several years so they can store them indefinitely. It may yet be available. If not, check your bank statement if you have it. That too may be imaged or otherwise stored electronically.

Write to Equifax. Doesn't need to be addressed to anyone specific.

P.O. Box 740241
Atlanta, GA 30374

[Brammy]

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Meachem wrote:

Howdy folks.  A while ago I recently disputed a discrepancy on my report. An account was sent to collections, but before I got a letter from collections I had already paid off the balance in full.  It just happened that way in the same week.

Anyway, the place is reporting that the account was charged off with a sizeable balance remaining.  I called the collections agency and they say they agree I paid in full and provided a letter saying as much.  I tried disputing it with Equifax and they say they investigated but ruled against me.

They investigated how?  I wasn't given an opportunity to provide a letter nor did they tell me how they investigated and why they ruled against me.  Now when I try to dispute it again they say they won't cause they investigated once already/

What's my next step?  I would love for this to come off.

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Does the collector show on your credit report?  The ccount could have been charged off BEFORE you received notification from the collector.  The company decides to code the account as a charge off and it can even be several months before it is actually assigned to a collector.  The collector gets the account and it can be another 30 days before YOU get the notification that they are handling the account.

A creditor doesn't have to notify you when they deem the debt uncollectable before listing it as charged off.  If the collection agency is showing, you should be able to dispute that since it was paid before you were notified but the charge off status remains as it indeed was charged off BEFORE your payment.

[hdporter]

Just as a point of information -- after an account has been delinquent beyond some threshold (typically 6 mo), accounting standards require that the account be "charged off". This involves charging the account as a loss against earnings.

This doesn't mean that they aren't permitted to continue collection and/or referral to an outside agency. If they subsequently recover the debt, the earnings are reinstated -- but that doesn't change the fact that at one time the account was written off. A paid charge off is recorded on your credit report as just that: a "Paid Charge Off". The Charge Off notation remains.

From what you state, it sounds like you paid the account subsequent to charge off. The fact that the account was pulled back from an outside collector does not, in itself, change the fact of the charge off.

[Noah_Bodie]

From what the original poster said, no it does not sound like it went to charge off to me. It's being reported as in collections. That generally means 120+ days late. Maybe it's still inhouse with the creditor. Maybe it's been given to an outside collection agency. And the creditor may have sold or assigned the account to the collector. Charge off to P&L usually comes at about 6 months. However, even if it did go to charge off, if they received payment before, and failed to properly credit payment to the account, seems they aren't completely and accurately reporting.