This is my first time posting here. I've been working really hard to repair my debt and get my credit score up. My goal is to refinance my student loans at an attractive rate, but this report put me 30 points in the wrong direction. I closed a Verizon bill and didn't realize their was money still owed on the account. I hadn't received anything from the company and all of the sudden I got a statement from Convergent and I hadn't had the chance to respond. I just got an alert of a new collections account reported to CRAs.
I called Verizon today to see if I could pay and if they'd pull the debt back (or even see if I could settle with them). The representative said she was able to take the payment over the phone and it would report as a zero balance, but there was no way to get the collections account off my report. Given that the option is still there to pay with Verizon should I even try to do DV and then a PFD? Or should I reach out directly to Convergent and see about a PFD? Has anyone else been in this situation before? Would really appreciate the advice!
I would not stress. This can be fixed, and mistakes happen. I would pay VERIZON directly, and as the other member said to validate the debt. After they validate the debt it will be confirmed you owe nothing. Or you could mail the form reciept to them. I had a debt collector harrassing one of my clients, and I said send them a letter stating to cease verbal communication unless its written via mail.
Under federal law they must prove the debt is valid if requested. If they do not drop it within thirty days then I would dispute this with the CRA.
I would first advise contacting the debt collector and offering a pay for deletion.
If they agree, then you have an oral contract agreement with the party who reported the collection that they will delete if you pay.
The original creditor cannot make any binding agreement for deletion of reporting that they did not make (i.e., the collection reported by the debt collector).
There is no provision of the FCRA requiring deletion of a reported collection based on the debt being paid to the original creditor.
If the creditor agrees to accept the payment, they are required to notify the debt collector that the debt has been discharged, which only requires the debt collector to close their collection and update the debt balance to $0.
In fact, standard CRA policy, as clearly set forth in their common credit reporting manual, instructs debt collectors not to delete their reported collection based on payment of the debt. Paying the debt to the creditor and then disputing the collection on the basis that there is no longer a debt will not require deletion of the collection, and is not a proper basis for dispute.
There is a round about process for removal of a collection based on payment to the creditor, but it requires that the creditor must first terminate their assignmen of collection authority to the debt collector. Deletion would then be based on CRA reporting policy only, and not upon any requirement of statute or regulation, and would be totally contingent upon the creditor agreeing to first terminate their assignment of collection authority prior to taking payment. They may be reluctant to terminate their business agrreement with the debt collector based only upon your promise to pay. They usually hire debt collectors to avoid such payment negotiations and hassles, and will often simply require you to deal with their agent.
When did you get the collection notice from the debt collector?
DV requests have a timeliness period of 30 days from date of dunning notice....
All good advice! I received a settlement offer on 1/28/19 (or at least that's what the date on the mailing is for). I called and talked to both verizon (no help, pay we update to 0 and in seven years it'll be ok) and also Convergent. Now the Convergent rep, said they didn't own the debt and that Verizon will list collections to the CRA in "their name" all the time and that they couldn't do anything about it. It sounded like a load of bull, so I just thanked the lady and hung up.
So, I should do a DV first? Then send a PFD letter or reverse the steps?
Thanks for the response! It seems like a 50/50 shot but a PFD would be about the same.