Question about Collection Account

Anonymous · ‎12-29-2015

I have been dealing with Verzion Wireless, which is notorious for their collection process--and even more notorious for refusing to delete collection accounts from credit reports. This whole process has been maddening! I purchased three tablets during a Black Friday sale in 2013. I had the account active for about two months. When my first bill should have been due I tried to login and find the bill, but to no avail, since a) I didn't know which one of the tablets had been set as the primary account and b) I couldn't figure out what the "phone number" for any of the tablets were. When I attempted to get ahold of customer service, I got the runaround--four different times. I requested a paper bill, but was told to log in an select that option--which I could not do. After two months they shut off the tablets and terminated the contract--after I refused to pay late charges that I felt were unjust since I never got a bill.

Anyway, since I am trying to puchase my own home, I was advised by both my lender, and my financial planner to just bite the bullet and pay the account. So I paid it off, but Verizon refuses to delete the collection. So my questions are as follows:

1) I think I have a couple of possible avenues under the FCRA to force them to delete. But I'm not sure, so I need some advice. a) Verizon sent my account to collection, intially with National Recovery out of Minneopolis, MN. When I called them, in July of this year to attempt to settle the account, they told me they had no accounts under my name or SSN. I gave them the Verizon acct # and they told me the account had been "transfered of sold to another agency." So I finally found out it was RPM in Seattle, WA and settled the account. b) I made an intially "settlement offer" payment in August, this was not correctly reflected on my account until November 30, which is past the 60 day limit (payment was made 23 Aug).

2) My account on all the Major Credit Bureaus showed "Open" but also "Placed for Collection" so why the ambiguity if the account was not active?

3) My account was disputed numerous time throuh EQ, EXP and TU, both through myself and Lexington law from Jan 15-Oct 15. So Verizon had numerous times to correct any discrepancies.

4) So, based on these conditions, do I have legitimate grounds to request deletion (with proper documentation) for any possilbe scenaro. Personally, I think the fact that the account was not correctly updated within the 60 day time limit is the strongest case, but I also think the fact they showed the account as both Open and Placed for Collection is suitable as well, as my understanding is that once and account is "transfered or sold to another agency" it has been written off.

Hokies2379 · ‎12-29-2015

Sorry to say, but you can't "force them to delete." If it is reporting as settled that is all they are obligated to do.

takeshi74 · ‎12-30-2015

@Anonymous wrote:
I think I have a couple of possible avenues under the FCRA to force them to delete.

You don't. While it was unpaid you had some leverage to negotiate a PFD but they're under no obligation to delete the data. Your discrepancies are not grounds for deletion. You can certainly push to get the data corrected but it won't make any difference.

Be vigilant with your credit accounts and other accounts that will report if delinquent. You want to avoid derogs versus having to address them after they're on your reports. If you're not getting anywhere with CS then escalate or visit a Verizon company when dealing with Verizon.

gdale6 · ‎12-30-2015

Moving thread to RYC

RobertEG · ‎12-30-2015

Disputing the OC account as still showing Open when it has been placed for collection may backfire.

They may add additional, previously unreported derogs to show a complete derog history, thus forgoing any additional assertions of inaccurate or incomplete reporting..

As stated by others, inaccuracies are basis for a dispute, with the furnisher always having the option to simply correct any inaccuracy. Deletion is only required if they fail to correct or to verify the accuracy. Having reported inaccurate information is not per se a violation of any credit reporting requirment.

Anonymous · ‎12-30-2015

Robert,

After further researching this, see what you think of this: 15 USC 1692e:

(2) The false representation of--

(A) The character, amount, or legal status of any debt;

Now I am still looking for the case law--I'm by no means a lawyer, but I briefly saw a case (in Maryland?) where essentially someone succesfully argued that by showing the status as "Open" when it wasn't they were essentially presenting the fact that credit was still being extended, when in fact it wasn't.

However, I think provision would be a far better route from what I have seen. 15 USC 1692e (12):

The false representation or implication that accounts have been turned over to innocent purchasers for value.

Again, I'm no lawyer, but from what I have been able to read on this statute, Verizon--when they listed the account as a collection account, at no time ever indicated the collection agency handling the account--thus making it appear as if they were handling the matter internally. In fact, the account was "placed for collection" with National Recoveries intially, and then RPM. As I previously mentioned, I disputed this account several times, and had Lexington dispute it as well. The earliest dispute that I have records for is November '14. So, my understanding is the clock for FCRA/FDCPA violations started then. Each CB report is considered a seperate violation, and if I understand the regulation correctly, every month Verizon failed to report the account as "placed for collection" is a violation at $1000 per violation so thats 12 x 3 x $1000 = $36,000 in damages.

What do you think? Is it worth consulting with a lawyer and considering civil action?

Anonymous · ‎12-30-2015

P.S Robert,

I also have a recent (August 2015) credit report (Experian) that shows the account status as Collection/Charged Off. Not that it makes that much difference, but if I understand all the ins and outs halfway, that means Verizon wrote it off on their taxes as a loss. Now don't hold me to it, but I do believe it also means that National Recovery/RPM would have "bought" the debt? Maybe, mabye not. This whole situation has been one big convoluted mess.

I have sent an official request to all three CB's requesting a history of the Verizon reporting for this particular account dating back to January 2014, to see EXACTLY how it has been reported and updated, as well as a request showing all disputes/requested investigations.

Anonymous · ‎12-30-2015

@Anonymous wrote:
P.S Robert,

I also have a recent (August 2015) credit report (Experian) that shows the account status as Collection/Charged Off. Not that it makes that much difference, but if I understand all the ins and outs halfway, that means Verizon wrote it off on their taxes as a loss. Now don't hold me to it, but I do believe it also means that National Recovery/RPM would have "bought" the debt? Maybe, mabye not. This whole situation has been one big convoluted mess.

I have sent an official request to all three CB's requesting a history of the Verizon reporting for this particular account dating back to January 2014, to see EXACTLY how it has been reported and updated, as well as a request showing all disputes/requested investigations.

Charge off is simply an accounting requirement, after a debt is delinquent for 180 days it must be moved from the assets section of their accounting ledger to the loss column. This is required by law to prevent companies from inflating their value with bad debts. Yes, they get a reduction in their taxes, but thats not really relevant. It does not mean the debt is sold. Should they later collect on it, the money becomes fully taxable.

Most of the communications companies are loath to sell their debt. They simply hire the collectors to collect it for them.