Credit Solutions Corp claims if I pay collection in full, then dispute - it will get removed!

[Hanson779]

Hey guys,

Would love your thoughts on this... I have two collections with Credit Solution Corporation totally over $10,000 from a loan I received and could not pay after I lost my job in 2014. 

I've finally got my financial bearings together and I called them to negotiate a PFD settlement. 

CSC told me they would not delete the accounts BUT that if I paid them in full, they would close the account and zero out the balance.

They said I could then dispute the account in 30 days and because it would be closed,  they could not report it back to the agencies so it would be removed. 

Do you think this sounds right? Don't know what to think. 

I am tempted to pay and see if it works on the smaller collection nearly $1,000 before paying on the other one which is over $5,000. 

Does this pass the smell test? 

Would love to know your thoughts. 

Thanks! 

Hanson

Thoughts? 

[RobertEG]

No.

The CRAs have a firm and written policy, set forth in their common credit reporting manual, the Credit Reporting Resource Guide, and also incorportated into their credit reporting agreements, that furnishers should not delete prior derogs based on the consumer having paid the debt.  The CRAs have that policy in order to maintain the completeness of consumer credit files,and thus the value of credit reports provided to others.

Disputing the accuracy of a reported collection on the basis that the debt has been paid is asking the CRA to delete for a reason that is directly contrary to their official and written policy.  It is essentially a frivoulous dispute that can be dismissed by the CRA without any requirment to investigate.

The debt collector is making a deceptive statement in order to collect on the debt,which is a clear violation of the FDCPA.

They know of the CRA policy, as it is part of their credit reporting agreement with the CRAs.

[Civil]

I had a collection company told me the same thing, but it was for $150 and it did work. In your case you are paying a 10k so I would not bet on it.

[800goal800]

CSC just told me the same thing.

How did it work out with you ?

[Anonymous]

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@RobertEG wrote:

No.

The CRAs have a firm and written policy, set forth in their common credit reporting manual, the Credit Reporting Resource Guide, and also incorportated into their credit reporting agreements, that furnishers should not delete prior derogs based on the consumer having paid the debt.  The CRAs have that policy in order to maintain the completeness of consumer credit files,and thus the value of credit reports provided to others.

Disputing the accuracy of a reported collection on the basis that the debt has been paid is asking the CRA to delete for a reason that is directly contrary to their official and written policy.  It is essentially a frivoulous dispute that can be dismissed by the CRA without any requirment to investigate.

The debt collector is making a deceptive statement in order to collect on the debt,which is a clear violation of the FDCPA.

They know of the CRA policy, as it is part of their credit reporting agreement with the CRAs.

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I just got done settling with midland for about 22% the balance within 3 days they deleted it right off my reports. 

you're spot on though disputing won't do anything. The agency/collections determine what goes to a report. They will validate everything right and it'll stay there. 

[gdale6]

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@Anonymous wrote:

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@RobertEG wrote:

No.

The CRAs have a firm and written policy, set forth in their common credit reporting manual, the Credit Reporting Resource Guide, and also incorportated into their credit reporting agreements, that furnishers should not delete prior derogs based on the consumer having paid the debt.  The CRAs have that policy in order to maintain the completeness of consumer credit files,and thus the value of credit reports provided to others.

Disputing the accuracy of a reported collection on the basis that the debt has been paid is asking the CRA to delete for a reason that is directly contrary to their official and written policy.  It is essentially a frivoulous dispute that can be dismissed by the CRA without any requirment to investigate.

The debt collector is making a deceptive statement in order to collect on the debt,which is a clear violation of the FDCPA.

They know of the CRA policy, as it is part of their credit reporting agreement with the CRAs.

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I just got done settling with midland for about 22% the balance within 3 days they deleted it right off my reports. 

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Yup, Midland, PRA and a few others have a stated policy of this.

[Hanson779]

Yes! It did in fact work - dropped off the following month and has stayed off to date. Good luck!

[RobertEG]

The original post asked whether a dispute filed with the CRA would result in deletion by the CRA.

Yes, it is possible that some debt collectors will delete after payment of the debt, but the question was whether or not deletion would be done by a CRA as a finding in a dispute.

That would require specific reporting of deletion by the furnisher rather than deletion by the CRA as a finding in a dispute.

A dispute filed by a consumer that does not identify an actual inaccuracy is a "frivolous or irrelevant" dispute that can be dismissed without any requirement for investigation.  See FCRA 611(a)(3)(A).

Payment of the debt does not result in inaccuracy of the reporting of the collection per se, and thus is not basis for required CRA deletion.

[Anonymous]

May I know what you checked for the dispute type. Thanks

[Hanson779]

Hi there,

I honestly don't remember even disputing it - it was just removed within 30 days of payment because the debt no longer existed  - it's remained off since December 2018.

Best of luck!