OC Recall of debt reported by CA

[Anonymous]

This was posted in another thread that I'm active in, I thought I would repost here to see if I can get more input!

"Collections are reported by the debt collector, not the creditor.  A creditor cannot delete reporting made by another.

If you seek removal of a collection, you can request a good-will deletion from the debt collector.  Howver, they are usually hard to obtain in view of the no-deletion policy of the CRAs that is part of their credit reporting agreement with the CRA."

If this is the case, then why pay off any debt collector unless you think they're going to sue?

Although it is the CA reporting the debt, not the OC, if the debt is still "owned" by the OC, can't the OC still recall the account from the CA??

And, once the OC recalls the account, can't they make whatever changes they deem necessary?

Regardless of what is set out in the agreement between the CA and the CRA, has it been found to be a requirement, based on case law, that the OC cannot stop reporting or fail to verify the debt that had first been reported by the CA (or whatever the OC wants to do)?  Just curious!

Thanks!

[Anonymous]

I had two collections on my reports in March 2017 -- one was new from 2017, one was old from 2016.  Both were CAs assigned by an OC.  The OC never reported.

I called the OCs each at least 2 dozen times to have them recall the debts which they said they wouldn't do.  I offered PFD to the CAs which they wouldn't do.  One time a CA dumped the debt back to the OC but before I could pay them, another CA was assigned and I received the letter, so I offered PFD but they denied it.

Eventually, one of the OCs finally capitulated and recalled the debt so I paid it immediately ($1000) -- gone from my reports.  The other OC also did the same so I paid it in full immediately ($250) -- gone from my reports.

If a CA or OC tells you no and you believe them, you're not trying hard enough.  You're definitely not doing any corrective work.  No never means no in the world of credit.

Totally off topic story, but I know someone who did HUCA with a credit card company probably 15 times in a week before he finally got an approval override.  He did it right.  All he invested was time.

[Anonymous]

I apologize for my ingorance in advance, but what is HUCA?

Thanks for the information, ABCD!  I enjoy reading all that you write!

Peace

[Anonymous]

HUCA = Hang Up, Call Again

I use HUCA all the time lately, not just with banks.

[Anonymous]

haha.  Thanks for breaking it down for me!

Also, thanks for the insight!

[RobertEG]

Paying the creditor after they have assigned the debt to a debt collector for collection assistance does not require the debt collector to delete their collection if they have reported.  

However, the CRAs have a policy instructing debt collectors to delete their reported collection if their collection authority is terminated with the debt remaining unpaid.  That policy is not based on there being any violation of the FCRA by lack of removal of the collection.  Rather, it is based on preventing the future inclusion of two collections on the same debt.  Once a first debt collector has reported and their collection authority is later terminated, the OC can assign or sell to a new debt collector, who has the right to immediately report their collection.

If the prior collection remains, then the consumer will have two collections simultaneously reporting on the same debt.

The removal of a collection under this process is not based on the OC reporting deletion of the collection after they terminate collection authority, it is based on the CRA removal under its reporting policies.  An OC cannot delete reporting they did not make, and would not be the furnisher that would answer and investigate any dispute pertaining to the collection.

In order to invoke the internal CRA removal policy, you must have evidence that the collector authority of debt collector 1 was actually terminate prior to authority being granted to debt collector 2 (which is the Open date of any subsequent collection).

If you simply pay the OC while their first assignment is still active, there is no basis for invoking deletion based on the CRA reporting policy.