Collection? WTH?

[Anonymous]

If I have to take a guess it's for a Sprint phone. I decided to pay the Early Termination (No signal at the house) fees, but they refused to take it. Pretty much said they will make more money if I stayed... I thought they took it since it was $100, and $100 was taken from my Bank. Logging into my account for them, it was taken out for the monthly bill (What would be next months)... I even have e-mails asking to pay the early termination fee. So instead they sent it to Collections I guess, so I take it they where paid. But yet Sprint site is asking me to pay them $232.54... What ever, since you guys are so helpful. How do I get this off my record? I don't mind paying the entire $232.54, but do mind if it's not removed!

New collection on debt by: DIVERSIFIED ADJUSTMENTS
Reported: 12/1/2010

In 10/1/2010, the collection agency DIVERSIFIED ADJUSTMENTS was hired by creditor Not Reported to collect $233 in debts on account number XXXX6740.

Original balance:	$233	Agency name:	DIVERSIFIED ADJUSTMENTS
Current balance:	$233	Agency number:	613YC16072
Status (as of 12/1/2010) :	UNPAID	Agency industry:	Not Reported
First delinquency:	2/1/2010	Original creditor:	613YC16072
Last payment:	Not on Record
Description:	Not Reported

[Anonymous]

Just so that I'm clear--

You cancelled your Sprint contract. Your early termination fee was $100. You believed that Sprint deducted the $100 ETF from your checking account. At some point after that Sprint opted not to end your service, kept it going, and charged you $100 for the next months bill. Now, they're charging you $233 for the ETF and some other fees? Is this correct?

Questions:

1. When you cancelled, did you do so in accordance with the contract (using whatever method/process that was stipulated)?
2. Was your bill fully paid for the cycle that you cancelled in? Meaning, the $100 that they charged you the next month wasn't for service that you actually had/used, correct?

[RobertEG]

Addition of a collection does not mean the OC has "been paid."  They can merely assign collection on their behalf to a debt collector, and retain ownership of the debt.

The debt with you remains out there somewhere until paid.  If the OC still owns the debt, then legally you could pay either the OC or the debt collector.  However, once assigning a debt for collection, many OCs will wash their hands of any collection matters, and insist that any payment be made only to the debt collector,  That is their discxretio.

If the OC actually sells the debt to a debt collector, they update their OC account to $0 balance, and thereafter have no authority to accept payment of the debt.

One a debt collector is either assigned or sold the debt, they can report the amount to your CR by way of a collecion account (CA).  By just looking at a collection account, you cant tell if their collection is  based only on assignment of collection authority, or if they have purchased the debt. You have to go back to the OC account and see if the OC  updated the balance to $0.  That tells you that they sold the debt.

As for being unsure who the OC is or what the debt is for, that is what FDCPA 809(a) is all about.  Within 5-days of posting to your CR, the debt collector is required to send you a formal collection (dunning) notice, prividing you this information, along with how to request its validation.

As for getting it removed from your credit report, that is more complex.  The first consideration is, after receiving your dunning notice, what do you accept as accurate or contest as inaccurate?  If you just want verification of the full name and address of the OC, or perhaps an itemization of the debt, then you can, within 30-days of receipt of their collection notice, send them a debt validation request under FDCPA 809(b).  But DV letters are unrelated to credit reporting.  The DV process is about debt collection practives, and is not addressed at credit reporting,

There are only four ways for deletion of items from your CR:

1.  wait for the 7 or 7 1/2 year period to expire under FCRA 605(a);  this requires that you do nothing but get older

2  try fo earlier deletion by disputing the accuracy of the reported information itself, either through the credit reporting agency under FCRA 611(a)  (not recommended), or by disputing directly with the party (OC or CA) who posted the information under FCRA 623(a)(8)

3.  offering a payment for deletion (PFD) request to the party, to which they have no obligation to accept or respond to)

4..pay it, and they try for a good-will (GW) request after the fact.

So the first question is, is the information in your CR accurate? 

[Anonymous]

The Early Termination fee was so post to be $100 (Give or take $10) since I was with them for 14 months. I contacted them twice by phone, and they kept giving me the run around. So I e-mailed someone a bit higher up and response was money will be taken out. This was months ago, and call me stupid I know now I should have checked on it (plus should have wondered why it was exactly as the monthly bill). I was young and first contract I signed, I did not know my rights besides the Early Termination Fee as a way out. I never got anything in the mail, at least at my correct address (been here for 6 months). Only way I known about the collection was through score watch. When I got that update, the only thing I knew it could be was Sprint. So I logged onto my account and sure enough it states I owe them $232.xx.

I want to know how to get this removed from my record, truly the only way I would pay it is if I knew I can get it removed. Either way it hurts me showing up paid or unpaid (to my knowledge). But funny enough, my score did not drop. I received a drop a few day ago for a new account. Then this showed up with no drop once so ever in my score. All though I do very well my Early Termination fee was $100 give or take $10. I would be willing to pay the entire $233 to get this over with in a fast matter (I even thought about going back to sprint before this. Since they are cheaper and put up a new tower).

RobertEG, number 3 in your option sounds like it could be a fast end to this (and easiest). How would I go with an attempt at this? Contact Sprint or the Debt Collector?

[enragedjerry]

Hey Steven, listen I don't know much but I do know you should take care of this problem as soon as possible, since it's so recent and with the holidays who knows maybe you  can speak to a very happy rep who is willing to give you a PFD. Anyways, Good luck.

[Anonymous]

I just got rent caught up, and what not (Unemployed). So now I want to put whatever extra money into getting this off my reports. Well I finally did get something in the mail from Diversified. A Settlement offer for $116.27 will consider the account balance settled in full!  Again not what I am wanting, I want a PFD and am willing to pay full.

I did get a call from them in the early mornings yesterday. I was very surprised, the lady did not speak clearly. She asked is this Steven ***, I said yes. She gave a her open line statement, did not understand her. So I stupidly asked who is this and how you get my number (half asleep). She replied and all I could truly understand from her was Diversified, contracted for Sprint, where is our payment. Still trying to get fully awake, I said, "okay. I am not admitting to any debt, but I do want this of my credit report as it was reported the first of Dec. Did you buy the debt from Sprint?" She said,"No, we was contracted to collect." I said "Okay, we are done talking. I will contact Sprint directly to discus the debt at hand." She rudely cut in and demanded payment, stating that last payment was $79 (It was more then that) and if I no longer wanted service, I should have paid the early termination fee of $60 (it's more then that and I wanted to), again she demanded for a full payment. I told her I will only make a payment if it's Pay For Delete, and she told me they don't do that. I told her,"Well again I am not admitting to any debt, I am offering a PFD and you will get one in certified mail." She cut's me off,"how much of a payment will be enclosed?" I told her again,"I am offering a PFD no payment will be enclosed at this time." She then stated this phone call is being recorded for collection purposes and for me to have a good day. I replied,"I did not give you permission to record our conversation and in the state of Florida." At this point she hung up on me...

I do not know if that phone conversation will have any affect on getting this off my record. But as said, now I have full focus to take care of this. Since I cut off and sold everything I do not need. Being unemployed I am watching my pennies, and now want to get this taken care of. So I can get a student loan at a decent interest rate. So, do I contact Sprint, since they show a balance? If they agree if I pay in full and they stop all forms of collection (I should probably ask them to mail something stating just that), would Diversified drop off my reports. Or am I at that stage I need to mail a PFD to them?

I have never done this, so probably need it carefully explained...

Thanks,

Steven

[RobertEG]

I think your phone conversation handled it very well!  It showed much more comprehension on your part of the process than theirs!

My advice is NOT to talk to them again.  Resort to the written word!

Steven, here is how the process works, step by step.  It assumes the debt is legit.  If the debt is still disputed, then the dispute process is still open to you.

1.  You first have an account with an OC that goes delinquent, and they close it.

2.  Upon closing the account, they can additionally charge-off the debt, and report this as CO to your CR

3.  Either separtely or addtion to reporting a CO, the OC can refer the unpaid debt to a debt collector.

     This is recorded under the OC account as a status code, but referral to a debt collector is NOT the same as the

     reporting of a CA to your CR.  CAs are only reported by a debt collector, and are totally different from any reporting

     done by the OC.

     a. if the OC only assigned the collection of the debt to the debt collector, but did not sell them the debt,

         then the OC continues to report the debt balance owed under the OC account.  If the debt collector reports

         their collection activity to the CRA, they will also report the amount of the debt.  So the same debt will properly

         show twice in your CR, but with different meanings,  The OC balance reflects their ownership.  The CA balance

         reflects the amount they are authorized to attempt collection.

     b. if the OC sold the debt debt to a debt collector, they no longer own the debt, and must then update the OC account

         to show $0 balance.  So, if the OC has sold the debt, and the debt collector has not yet reported a CA, your CR

         might not show any debt owed.  But it is still owed.

         If and when the debt collector chooses to report a CA, the amount is then reported.  But now it is the amount

         that they both own and are collecting upon.

So, those are the details of the process.  You need to determine where you are in this process in order to then know your options.

If you are under step 3(a) above, you can legally offer payment in full or a contingent PFD offer to either the OC or the debt collector.

Many OCs, even though they still own the debt, refuse to entertain any payment offers after referral to a debt collector.  That is why they hired a debt collector, and simply no longer want to be involved.  That is their option.  If you are at step 3(a), and make a PFD offer to the OC, and the OC accepts it, then the OC can ONLY agree to deletion of their own, prior reporting.  The OC acceptance of payment does NOT compel the debt collector to delete any prior reportring they made under their separte CA reportoing. All the debt collector is then required to do is to update the CA account balance to $0 and discontinue further collection activites.Similarly, if you offer a PFD to the debt collector, and the debt collector accepts, then only the debt collector is compelled to delete their CA reporting.  That cannot compel the OC to delete any reporting made by the OC. All the OC is then required to do is to update debt balnce to $0.

[taz3261]

Robert this PFD should be in writing right? I want to pay my debt to verizon the OC and there are the only ones reporting a debt is past due.

[RobertEG]

A PFD is a contract offer, so yes, it should be in writing.  It wont become a contract until they have fully accepted your terms, so you should insist that any acceptance of a PFD also be in writing.

[taz3261]

Thanks!!