Closed collection with balance?

[Anonymous]

I have a collection that says it was closed in September 2013, updated in November 2013, but still shows a balance. I may have paid the OC but can't remember. What's the best way to get this deleted?

[RobertEG]

The issue of whether or not the debt has been paid is not basis for compelling deletion of the collection.

To the contrary, the CRAs instruct debt collectors not to detete their collections based on payment of the debt.

Your issue is primarily one of correcting your credit file to ensure that it is accurate, and thus that no one reviewing your report will be confused as to whether the debt has been paid.  Update will not require deletion of the collection or improve your score.

Since they closed the collection, that infers that they likely consider the debt to have been paid, and simply forgot to update the balance.

I would begin with an informal call requesting they update the balance to $0.

If the informal call leads to problems, such as their assertion that the debt remains unpaid, you can pursue that issue by way of dispute.

[Anonymous]

I disputed and it came back verified.

[RobertEG]

So they are asserting that you have not paid the debt.........

Did you pay with traceable bank records?

[Anonymous]

Honestly it was a few years ago and I don't know. Someone may have paid for me or I may have paid it out of a bank account thats been closed for a few years as well. Should I begin by contacting the OC and see what they show?

[RobertEG]

You will need something more than a maybe to dispute their assertion that it is unpaid.

If you paid the OC, then the debt collector did not own the debt, and were only an assigned agent of the creditor.

As such, the OC should have notified the debt collector of any payment.  Perhaps they forgot.......

[Anonymous]

I called the OC and they stated I never had balance with them. They said I did have written off balance with a sister company that is independently owned and located in another city. The CA is specifically reporting this company at this particular location. Seeing as they are reporting a balance on a closed account, inaccurately reporting the OC, and then verified said information during a dispute, I feel pretty confident I can get this deleted via CFPB complaint.

[Anonymous]

Sister company has a different name as well

[RonM21]

Might be worth a shot then but not a gjarantee obviously. Hope it works out.

[RobertEG]

Their most serious offense in that littany is their verification of your dispute.

Lack of reasonable investigation of a dispute is itself grounds for your own civil action.

In a CFPB dispute, the most serious violation would be knowing or negligent reporting of inaccurate information, which is a violation of FCRA 623(a)(1), but only the CFPB could bring civil action on that basis.  A consumr cannot, and must fall back on civil aciton only after having filed a dispute.