I had a credit card with HSBC that is listed on my credit report as "Charged - Off, Transferred/Sold" first major delinquency 2009. In 2011 I paid this debt off through a collection company and I have the letter proving it.
Every 6 months or so, a new collection company comes out of the woodwork attempting to collect this debt again. Each time, I send them a copy of the letter and they go away. The problem is, every time this happens, I get a hard inquiry on my report from the new collection company. I fight it with them, and unltimately it goes away after a few months. Not only is it annoying, but the frequent inquiries are killing me.
Is it safe to assume the original company I paid the debt to didn't report it somewhere correctly? Is it possible to pin this on HSBC and get them to stop reporting the trade line all together because the file is incorrect ?
No way you can pin this on HSBC. They sold the account to a CA and God knows how many times it changed hands before it finally landed with the people you paid. Your best bet is to go after whoever sells the debt to the next CA that calls you. Next time on, do not even bother to send them copies of the PIF letter to prove that you repaid, just send a C&D by CMRRR.
Better yet, send them a DV.
A DV is much more comprehensive than a cease communication letter, as it encompasses all collection activities, not simply communication with the named consumer.
As soon as they call, I would also wait approx 7 days, and if no dunning notice is received, send a stock complaint to the FTC for their violation of the FDCPA 809(a) requirement to send dunning notice within 5 days of an initial communication with the consumer.