So, here's what happened. I sold a vehicle to a family member, on installments. First mistake. According to Georgia Law, because I was the registered owner, insurance companies are required to put my name on the policy. Completely wihtout my knowledge or consent.
They pay the car off early last year, but due to COVID, all the state title offices are closed, so they're unable to get the title transferred. Family member finds a buyer for the car soon afterward and call Liberty Mutual to cancel the insurance (by phone). Never checked to get a confirmation of the cancellation. Fast forward to July- title offices open limited hours so they're able to transfer the title to the new owner, all the time LM is billing family member for insurance premiums. The family member has moved and apparently never gets any bills in the mail from LM. Fast forward to October - LM turns the account over the CCS. They sent a notice. Notice is never seen because they've moved. Fast forward to December - because I'm on the account, CCS enteres a notice of collection on my credit file, which I get notified about last Sunday.
I was on the phone to LM almost the entire day trying to resolve this. They offer an option to backdate the policy to the date of sale, which would (in theory) clear the balance due, therefore (in theory) negating the charge-off amount, which would (in theory) force CCS to retract the collection entry.
I called CCS and explained to them what had happened - and they weren't A-holes (to my surprise). I'm getting ready to buy a house in April and I cannot wait for due-process from Liberty Mutual and bet all my chips that the scenario would play out as I needed it to. Long story short - CCS agreed to remove the report from the CRA's if I made the payment in full - said would take 7-14 days on average, but could take up to 30.
I paid it. Had no choice, really. Paid it this past Monday - checking daily. The only CRA it appears on EQ - however CCS says they reported to all 3. Hoping was able to intercept the other 2 and waiting on the EQ insertion to come off. Hopefully soon.
