Hi all,
New here, but couldn't find the answer to my dilemma anywhere on the forum already. Maybe my newbie self isn't searching correctly. I apologize for the long post in advance. Anyways, I'm doing relatively well credit-wise for someone just starting to take this seriously. However, I have one account in collections:
-- Original medical bill: $174
-- Made payments to bring to $114
-- Set up automatic payments w/ correct payment info for remaining balance, original debtor never took out (small amount, didn't notice it wasn't taken)
-- No notices from original debtor sent indicating payments had not gone through as agreed
-- Year later, collection agency says I owe $588(!), threatens reporting that amount to agency
-- I reply w/in 30 days, dispute with proof for $114 by certifed mail (12/01/13)
-- No reply back about updated information or further collection attempts
-- Report account as 'in collections for $114' two weeks after letter sent. (12/16/13)
-- Never notified it had been reported, only found out when pulled my credit report when denied for AMEX last month.
So they clearly got my letter and looked at my documentation, and internally updated their amount, but failed to contact me with an updated notice. I sure as hell wasn't going to pay the $588, but would've paid the $114. But I guess they took my dispute of the amount as refusal to pay? My question is, arent they required to correct their information, then re-attempt collection before reporting it?? According to the FCRA, they have to notify me within a month of putting something negative on my report. Which they threatened with the $588, but never notified me that the $114 had been reported to an agency. Whats my legal/credit rights standing here?
I'm planning on writing a letter asking them to take off the collections info from experian, in exchange for payment in full of the ACTUAL amount owed. However, I need to know if they're in the wrong by not seeking payment after updating the amount and not notifying me of change/reporting to agency. Also, is the original debtor at fault for not processing the automatic payments when provided with correct financial information, or does that fall on me not noticing? Its really bugging me that this happened, especially over a tiny debt!
