cancel
Showing results for 
Search instead for 
Did you mean: 

Removing a collection after settlement and release from the original creditor

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Established Contributor

Removing a collection after settlement and release from the original creditor

I moved out of a home last year and the property management company straight up falsified information (such as charging me rent for a month after the new tenant moved in...) and pretended existing damage wasn't existing. Since they'd never actually done a walkthrough or damage deposit, as required by law in my state, I got a lawyer to deal with them. But they basically sent it straight to collection (with Hunter Warfield) so by the time my attorney got done with them, I had a collection on all three bureaus.

 

Fast forward to now, and it's been a month since we signed a settlement that releases me of all obligation past or future, specifically states they must cease collection activity, etc. But Hunter Warfield hasn't removed the collection from my report, even though the prop management company's attorney verified that they were sent the settlement agreement and told to stop collection activity. 

 

I have called them four times and left three voicemails in the last 7 days. They don't answer their phone and no one calls me back. I found a fax number on a thread here and just sent them a letter along with a copy of the settlement. I also emailed it to them.

 

This is a big problem because I am in the process of obtaining a mortgage and the collection shows up as being for 6k. I actually owe nothing. I need this **bleep** thing off my credit report, fast. Any suggestions??

FICO8: Low 700s. FICO9: Mid 700s. Goal: 800 club
Message 1 of 7
6 REPLIES 6
Legendary Contributor

Re: Removing a collection after settlement and release from the original creditor

While not as fast as you would likely want, you can file a formal dispute of the collection with the CRA, which then requires forwarding to the debt collector, their investigation and response back to the CRA, with the CRA required to conclude their reinvestigation of the dispute within 30 days of its filing.

 

Legally, after the debt collector received notice of the correction to no debt due, they were required under FCRA 623(a)(2) to "promptly" update their reporting so as to maintain its current accuracy.  Promptly would be in their next regular monthly reporting cycle, with deletion of the collection being the required reporting since there is no longer any delinquent debt upon which to conduct any collection.

Thus, legally, you should not have to file a dispute, as they are required to promptly initiate the required deletion.

Howver, a dispute will at least force an additionally statutory period for investigation and correction/deletion of their reporting.....

 

In the interim, have you showed the documentation establishng no debt in fact to your mortgage lendor?  That may satisfy them regarding any underwriting requirement regarding removal of the collection.

However, that will not remove it from scoring, so until you get it deleted from your credit report, your score will still include the negative effect of the collection.

 

Perhaps a call to the original creditor and request that they contact the debt collector on your behalf........

Message 2 of 7
Established Contributor

Re: Removing a collection after settlement and release from the original creditor

The weird thing is that the status shows up on all of the bureaus as disputed, but I didn't dispute it. I assumed I woudn't have to since I have the settlement. But the disputes are also an issue, so I am also trying to get those off (and don't want to add a new one!).

 

My file is going to go into underwriting as soon as we get the disputes off, and I can of course give the lender the settlement so at least they'd know there's no debt owing. But they've said it'll help lower my interest rate by likely bumping my scores up pretty significantly if we can get this off (when it came on, it dragged my scores down 50 points). So, yeah I can get through UW with it still showing up but I sure would like it off. These people are so frustrating.

FICO8: Low 700s. FICO9: Mid 700s. Goal: 800 club
Message 3 of 7
Regular Contributor

Re: Removing a collection after settlement and release from the original creditor

Congrats on the upcoming new property! Seems like you have a good lawyer? Can s/he send a letter to the CA on your behalf?

Aug 2019: EQ 713, EX 698, TU 708 (Mar 2017: 550's)

AAoA: 8.6 years, Gardening Goal: Spring 2020
Message 4 of 7
Valued Contributor

Re: Removing a collection after settlement and release from the original creditor

Consumers are not the only ones who dispute. When a file is under review by a creditor, they'll put it in dispute status sometimes, to show pending investigation. I don't know if that applies in this context, but maybe...









(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 5 of 7
Established Contributor

Re: Removing a collection after settlement and release from the original creditor

It’s off TU and EQ!!! Probably off Experian too but I can’t see that on Credit Karma. Omg I’m so relieved!! This was on my son’s credit too since he was 18 when we moved in... so glad it’s off.

I couldn’t find a fax # for them anywhere but these boards. Thank you!!
FICO8: Low 700s. FICO9: Mid 700s. Goal: 800 club
Message 6 of 7
Moderator

Re: Removing a collection after settlement and release from the original creditor


@Readyformyhome wrote:
It’s off TU and EQ!!! Probably off Experian too but I can’t see that on Credit Karma. Omg I’m so relieved!! This was on my son’s credit too since he was 18 when we moved in... so glad it’s off.

I couldn’t find a fax # for them anywhere but these boards. Thank you!!

I removed all the EX fax numbers a few weeks ago as all were disconnected. If you get a good fax number for EX disputes please let me know and I will add it to the list

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.