Blackmailed by a Collection Agency

[Anonymous]

I have an old collection that was paid back in 2014 (approximately $80).  I paid it directly to the original creditor even though it went to collections.  The debt was still listed as open afterwards.  Currently, I disputed the amount several times with all three credit agencies and CFPB.  Transunion and Experian have removed the entry completely but it remains listed as "open" on Equifax.
 
I called the collection agency (a company called Regional Recovery Services, Inc in Indiana) twice.  So far, R.R.S. has offered to remove the entry only if I pay a deletion fee.  Obviously, I will not be blackmailed.  What other recourse do I have for a company that won't even respond to CFPB and refuses to update my credit file?

Update: After constant calling, I got through to a manager who deleted it for no fee. Equifax updated the next day to confirm. I just kept talking to the wrong person I guess.

[Anonymous]

I wish Cap1 can blackmail me with a deletion fee to delete my charged off account off the 3 credit b's. 

[RobertEG]

When you filed your dispute with EQ, you should have received a formal Notice of Results of Reinvestigation from them shortly after conclusion of the 30-day reinvestigation period.  That Notice specified the outcome of the dispute.

What was the finding in that dispute?

The reasonable investigation by the debt collector that was mandated by that dispute can thereafter serve as basis for bringing civil action against them if they verified that their collection was still open/unpaid with knowledge that it was paid.

Once paid, they were required under FCRA 623(a)(2) to have promptly updated their collection to show Closed, $0 balance.

That is a requirement of statute, and they are obligated to update.  If they refuse to do so without additional compenstation, that is a willful violation of their obligation.

I would highly recommend consultation with an attorney with eye on civil action for lack of reasonable investigation of your dispute by failing to correct a clear and know. inaccuracy.  Willful noncompliance entitles you, under FCRA 616, to actual and punitive damages, and attorney fees.  I would seek punitive damages.......

[howellco2]

@Roberteg I've also got paid debts that show open PFR says it's Equifax policy to leave accounts open just 0 out BALANCE. I called Equifax and after a few transfers I got a supervisor in America who told me the same thing they remain open even after paid for 7 year

[GodivaD]

Legit!! 😂 sorry I’m laughing at the wish of being blackmailed. 😩

[Anonymous]

Send them an ITS letter , Intent to file suit for FDCPA violations. See if that works. 

They may just go away 

[RobertEG]

A paid account, be it an OC account or that of a collection, is closed when the debt is paid.

That is per the common CRA reporting manual, titled the "Credit Reporting Resource Guide."

The Credit Reporting Resource Guide does not include any policy or reporting guideline/policy that a paid collection is reported as Open.

[Anonymous]

Also , asking for a deletion fee is a problem. 

[Anonymous]

Sorry, I didn't mean to be insensitive to the threadstarters' situation. It's just that it would be so nice if there was such a thing as a deletion fee so that I can fix my credit faster. It's definitely a shady move on their part.

[Anonymous]

Shady or illegal ? I would ask the collector to show me where in the contract it allows them to collect this fee. When they can’t find it, I would tell them to delete and I won’t sue them.