PFD before or after filing a dispute? (paging RobertEG if possible)

[Anonymous]

This is such a useful forum and I thank everyone in advance for their help.

I recently found out that I had an unpaid bill with AT&T (from May 2019), that was turned over to a collection agency (Sequium Asset Solutions), and the delinquency reported to TransUnion (maybe others as well, but I won't know until I get my full credit report, which I'm in the process of doing). From what I gather, the CA is the one reporting to the bureaus. 

I have no problem paying the full amount (less then $200), but I would like to remove the delinquency from my record as my credit score took such a huge hit (over a 100 points down!). 

I called TransUnion when I saw that my credit score had dropped so much. The rep told me it was due to an upaid AT&T bill, now turned over to collection agency. It turns out the rep also opened a "dispute" on my behalf. I found this out when I called TransUnion again (because I couldn't get my credit report from www.annualcreditreport.com). I don't have any other information past the fact that there's a "dispute" and the collections agency has 30 days to respond to it. 

Now, I'd like see if the CA can agree to a PFD, however, given that there is now a "dispute" pending, should I wait until that is cleared or should I send the PFD right now anyway? 

As to why I was delinquent in the first place: I have two phones (work pays for one), and for my personal one I forgot to update the credit card on my AutoPay set-up when a new one came in the mail. So I do feel I'm at fault but I've also never ever been late on any other payment in 10+ years, ever, so I feel a single strike with such disastrous effect on my FICO 8 is a bit unwarranted. 

One additional detail: I called both Sequium (the CA), and AT&T and both agree to take payments. However, I think the CA is the one reporting to the credit bureaus. 

[FireMedic1]

Ask AT&T to recall the debt and then PIF since they offered to take a payment.

[OmarGB9]

Also call Transunion again and tell them to cancel the dispute as you never wanted to dispute anything.

[Anonymous]

Thanks Omar and FireMedic! 

When I called the collections department at AT&T, it didn't seem like they would communicate with the credit bureaus to remove the marks. The rep just said something to the effect of: once you pay, everything will get updated and your score should be fine. I asked if she could communicate to the credit bureaus so that I'm not dinged, and she said she can't do that, and I'd have to take it up with the collections agency.

To me it felt like they were saying that the balance would get updated updated to $0 after payment. Which is great, but I'd like this to be removed from my record, and I didn't get a clear answer on that...the reps I spoke to didn't seem particularly knowledgeable.

I will call AT&T again right now and use the specific language you suggested "recall the debt" and see if I get a more positive response. 

[FireMedic1]

Glad you got it PIF. They must have still owned it to collect on. Good Luck!

[gdale6]

---

@Anonymous wrote:

Thanks Omar and FireMedic! 

When I called the collections department at AT&T, it didn't seem like they would communicate with the credit bureaus to remove the marks. The rep just said something to the effect of: once you pay, everything will get updated and your score should be fine. I asked if she could communicate to the credit bureaus so that I'm not dinged, and she said she can't do that, and I'd have to take it up with the collections agency.

To me it felt like they were saying that the balance would get updated updated to $0 after payment. Which is great, but I'd like this to be removed from my record, and I didn't get a clear answer on that...the reps I spoke to didn't seem particularly knowledgeable.

I will call AT&T again right now and use the specific language you suggested "recall the debt" and see if I get a more positive response. 

---

Yup you have to get them to recall the debt before you pay it as this cancels the collectors authority to collect and per CRA rules they must then remove their collection account entry if they dont have the power to collect on it. You could also offer the reporting CA a PFD.

[Anonymous]

UPDATE: Called AT&T and they didn't seem to know how to recall the debt. Spoke with two people and both drew a blank. Anyone else experience this? 

Seems like I have two options:

(1) Try to PFD the CA. But it seems that that route is usually not as successful...do you agree?

(2) Pay ATT directly. Then file a dispute with the credit bureaus. From what I've read on here, a lot of people seem to recommend this specifically when dealing with telecoms. 

What would be the more effective route? 

[spiritcraft1]

---

@Anonymous wrote:

UPDATE: Called AT&T and they didn't seem to know how to recall the debt. Spoke with two people and both drew a blank. Anyone else experience this? 

Seems like I have two options:

(1) Try to PFD the CA. But it seems that that route is usually not as successful...do you agree?

(2) Pay ATT directly. Then file a dispute with the credit bureaus. From what I've read on here, a lot of people seem to recommend this specifically when dealing with telecoms. 

What would be the more effective route? 

---

You can try #1, if no go move to step two.  

Here is what I have done twice with Comcast and Verizon...  Pay the OC directly.  Wait a week and call them to ask if you have a past due balance on any account.  They will say "no" and you thank them and hang up.  Write a letter to any bureau who is posting this CA and in the letter state that you "recently contacted AT&T on XXXX date and they stated that I did not have any past due balances on any account in my name".  Please delete this negative reference on my credit report.  Simple, to the point and you will not be lying. 

[gdale6]

Lets all remember the advocation that someone dispute a valid credit entry is prohibited on myFico. OP you need to get them to PFD or just pay it to stop the monthly updating if you wish your Fico to begin to rise.