Paying OC but CA reported on me HELP

[HopeThruFaith]

I had received a collection from a medical bill about a month ago. I immediately contacted them to make arrangements to pay the bill before it hit my credit report. We had came to an agreement to settle the balance for exchange of not reporting to my credit report. I gave him my credit card information and thought everything was ok. A few weeks later I made the decision to just pay the full balance instead of settling so I called him back to make the change. At first he acted like he had never even spoken to me and asked me to settle the account for more money. I said you already have an agreement on file and my credit card. He responds with an o yeah, I see it. (They are so unprofessional and unorganized) So I tell him that I need to change the arrangements and want to pay in full (5 payments of $125 instead of one payment of $430) and he tells me he will do it for the day we had scheduled. Well the day comes and goes and the payment was never debited. I reach out to the OC who was very helpful and agreed to set me up with payments. She also said that she will contact the CA to make them aware so that its not reported to my credit report. I call the CA back just to ensue they don't try and hit my credit card, spoke with a supervisor and was told she would take care of everything. Well today guess what happened!!! I got hit on my credit report...dropped me 27 points. CA is reporting even though I'm paying the OC. What should I do? Who should I contact? Shouldn't the OC pull the account back since I'm paying them directly? That's what she said she would do. Can the CA still report when I'm paying the OC? I'm wondering if the CA is just being underhanded. Please advice in how to proceed.

[DaBears]

If in fact that did happen and the OC took back the account, the CA has no longer collection authority and must delete the trade line. If they refuse to delete I would file a complaint with the FTC and AG in your state. 

[HopeThruFaith]

Thanks for responding. I was hoping this was the case. I feel confident in the OC and I think the issue is that the CA is unorganized and unprofessional. I'm calling them both on Monday to try and straighten it out.

[RobertEG]

I would differ.

If the debt colector had legitimate collection authority, their reporting of that fact was proper.

Termination of their collection auhority, either by payment of the debt or by rescinding of their assignment by the OC does not alter that fact.

There is no basis in rule or regulation requiring the delletion of reporting of a collection due to termination of the collection authority.

Accordingly, there is no basis for a complaint to the FTC for any violation of either the FDCPA or the FCRA.

The OC can request them to delete, but it is not the OC's reporting, and thus they have no basis to require deletion.

A GW request to the debt collector would, in my opinion, be the appropriate path.  Disputes and complaints are not apt to forster future GW.

[DaBears]

If the OC took back the account from the CA, the CA has no collection authority and must delete their TL. I comfirmed this with my consumer attorney.

[Imperfectfuture]

DaBears, is there more info (I.e. threads) re consumer attorneys in the forum? Interested in this maybe?

[RobertEG]

I know of no statutory or regulatory basis for such a "requirement."

Termination of a debt collector's future collection authority does not negate the fact that they had authority at the time of their reporting, and thus there is no inaccuracy in their reporting to form the basis for a dispute. 

[HopeThruFaith]

But if I paid the OC and they reached out to the CA BEFORE they reported doesn't that mean they had no grounds to report?

[DaBears]

You will need to do a google search for a consumer attorney in your local area.

[guiness56]

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@RobertEG wrote:

I know of no statutory or regulatory basis for such a "requirement."

Termination of a debt collector's future collection authority does not negate the fact that they had authority at the time of their reporting, and thus there is no inaccuracy in their reporting to form the basis for a dispute. 

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Whether you choose to believe it or not, it IS in the Credit Reporting Resource Guide.  They MUST delete if they no longer hold the debt.  It is not the same thing as not deleting a paid account.