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Mysterious Collections on Report

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Mysterious Collections on Report

On 8/31/2019 I recieved an alert from Credit Karma there was a collection added to my report. It was added by Convergent Outsourcing for a $2036 debt previously owned AES/NATIONAL COLLEGIATE TRUST. I had an account with AES/NCT that was closed in 10/01/2015 with a remark saying "Transferred to recover."  My mother was paying the loan but stopped paying it in May 2015 then the account was closed on  10/2015 with a last payment made the same date; the amount for the original account was for $1500.

 

On my credit report it says the account has a balance of $0 and closed, and I haven't received any communication from AES/NCT. I have also not received any calls or letters from Convergent Outsourcing before the account was put into collections. My credit report also says the account was placed in collections on 6/26/2019, but was only added to my report 8/31/2019. I've already filed a dispute with all three CA and because of labor day I haven't been able to contact AES/NCT. Unfortunately my mother has passed so I'm not able to get any information from her.

 

I have no idea what's going on or what to do. What are the next steps I should take?

 

4 REPLIES 4
Community Leader
Mega Contributor

Re: Mysterious Collections on Report

Hi and welcome to the forums @jlm4896 

 

There is really nothing mysterious there. You defaulted, and that account has been in collection status ever since. That's what  "Transferred to recover" means. You did not pay them directly, so they are using different means to recover what you owe, a collection agency in your case. 

They could have used internal collection agency, so there would not have been separate reporting till now 

You said yourself that payments stopped, it was never paid off and it's completely irrelevant who was supposed to be making payments. it only matters whose name is on the debt. That's who is responsible for it. 

 

 6/26/2019 is when Convergent received/purchased the account. They are reporting now. You know you owe this debt, so I'm little confused on what you consider mysterious in this case. 

 

I'm no sure what you used as a basis for your dispute, but I would not expect this to be resolved in your favor

If Convergent is unable to validate, they will just sell the debt and the whole process will repeat itself. 

If they validate, scores go down some more. 

 

Your best option, if you want this account to stop haunting you, is to pay/settle. 

 

 

Message 2 of 5
New Visitor

Re: Mysterious Collections on Report

Hi Remidios,

 

Thank you for the reply.  What is mysterious to me is that after 10/2015 and the transfer to recover remark and account closure there were no indications the account was in collections and only showed as closed through all CA's.  The first time hearing about this account being in collections was through a credit report notice on 08/31/2019, 4 years later.  I have recieved no communications in the mail, by phone, or any other means about this account.  The payment status on the 2015 loan was also changed from 150 days to 120 days late a day later.  The lack of any notice for 4 years and absloute lack of communications from the companies involved is what raises red flags with me.

Message 3 of 5
Community Leader
Mega Contributor

Re: Mysterious Collections on Report


@jlm4896 wrote:

Hi Remidios,

 

Thank you for the reply.  What is mysterious to me is that after 10/2015 and the transfer to recover remark and account closure there were no indications the account was in collections and only showed as closed through all CA's.  The first time hearing about this account being in collections was through a credit report notice on 08/31/2019, 4 years later.  I have recieved no communications in the mail, by phone, or any other means about this account.  The payment status on the 2015 loan was also changed from 150 days to 120 days late a day later.  The lack of any notice for 4 years and absloute lack of communications from the companies involved is what raises red flags with me.


I understand the red flags part, but loan wasn't paid off. You're aware of that. If your mom was making payments, maybe you gave them different address for correspondence or you/mom had a different phone number. A lot of possibilities there. 

Bottom line, when we borrow money, the responsibility is on us to ensure it gets paid back. 

No lender is under obligation to report anything, good or bad. 

 

Anyways, you already disputed, so there is nothing you can do right now till they notify you of the results. 

Message 4 of 5
Legendary Contributor

Re: Mysterious Collections on Report

There is no requirement under either the FCRA (which relates to reporting to a CRA) or the FDCPA (which establishes collection practices for debt collectors) that a debt collector send any notice to a consumer prior to reporting a collection to the CRAs.

It is very common for a collection to be reported without any prior communication with the consumer.

 

Debt collectors can choose to delay for any period before beginning collection attempts, and can choose to first report to the CRAs prior to any communication with the consumer.

Triggering of a requirement to send a formal collection ("dunning") notice to the consumer occurs once the debt collector has chosen to make an intial communication with the consumer.  They are then required to send the dunning notice within 5 days after having initiated communication.   See FDCPA 809(a).

That then triggers the right of the consumer to send a debt validation request within 30 days after the dunning notice.

 

Based on the posted scenario, I see no disputable inaccuracy in their credit reporting of the collection, or any violation of the collection notice requirement of section 809(a) in that no reference is made to any initial communication initiated by the debt collector to the consumer.

 

Since the debt is apparently valid, you could make the debt collector a pay for deletion offer, and if they accept, you will both discharge the debt and get the collection deleted.

Message 5 of 5
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