Removing a (possibly) False Collections Notice

[Anonymous]

So I recently moved overseas to work for the Government. Before I left, I was using my GI Bill payments and going to school in Hawaii. I removed myself from school and stopped my payments from the VA. In November, an open collections showed up on my credit report from the VA, so I called their debt management office and asked them what happened. Basically, they told me that they had overpayed me and had sent several letters to my previous address asking for payment starting around the time I moved. The only notifications they sent were the letters to the wrong address. No notification by email, or on the VA benefits website (where you can view the status of your GI Bill payments).

Is there any way to get this removed from my credit report? I was never notified of the debt before it went in to collections, and I paid it off after I found out about it. I disputed it with the credit agencies, but none of them removed the collection notice. It just doesn't seem like it should be valid if I was never informed of the debt, or given the chance to pay it.

[gdale6]

---

@Anonymous wrote:

So I recently moved overseas to work for the Government. Before I left, I was using my GI Bill payments and going to school in Hawaii. I removed myself from school and stopped my payments from the VA. In November, an open collections showed up on my credit report from the VA, so I called their debt management office and asked them what happened. Basically, they told me that they had overpayed me and had sent several letters to my previous address asking for payment starting around the time I moved. The only notifications they sent were the letters to the wrong address. No notification by email, or on the VA benefits website (where you can view the status of your GI Bill payments).

Is there any way to get this removed from my credit report? I was never notified of the debt before it went in to collections, and I paid it off after I found out about it. I disputed it with the credit agencies, but none of them removed the collection notice. It just doesn't seem like it should be valid if I was never informed of the debt, or given the chance to pay it.

---

When dealing with the government they get to do whatever they want its just the way it is and they are never fair. Your only shot is a PFD and if they wont grant it I would just pay it off as they will get from you at some point. Once its paid you can attempt to remove it via GW letters.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

[Anonymous]

<rant>

This is one of those things that should NOT be reportable on your credit. After all you don't ASK for them to screw up and overpay you, they do that all on their own every day of the week. Its not your fault they screwed up and its not your fault they had a hard time contacting you to let your know about THEIR screwup, so how is it ANY reflection at all on ones credit? This kind of thing just makes no sense to me, and it really pisses me off particularly cuz its veterans they are screwing with.

</rant>

[sisyphuswins]

My BF had a similar situation.   He apparently was charged for government life insurance after he go out---the paperwork trail moves so slowly that what seems to have happened was his time was done, he separated (or whatever that military term is), but they had already processed the premium bill.   Because he was done, he didn't have a paycheck to take it out of.  Instead of cancelling the policy, the US Army claimed they had provided him with coverage for which he never paid and instead of contacting him to have him either pay for it or provide proof of separation so they would cancel it, they just made it a collections account.    It's a great way to say "Thank you for your service!"

Anyway, if it's any help, he wrote a letter to them, explaining the situation and his dismay at the way he'd been treated.   They quietly removed the account from all three reports immediately.

Good luck!

[Anonymous]

Is there any way I could get the outline of the letter he sent (with all personal information removed)? I want to make sure I use the right tone while I am talking to them, and the best way to do that is to use a letter that worked.

Also, did he mail it, or email them?

Thanks.

[Anonymous]

---

@Anonymous wrote:

<rant>

This is one of those things that should NOT be reportable on your credit. After all you don't ASK for them to screw up and overpay you, they do that all on their own every day of the week. Its not your fault they screwed up and its not your fault they had a hard time contacting you to let your know about THEIR screwup, so how is it ANY reflection at all on ones credit? This kind of thing just makes no sense to me, and it really pisses me off particularly cuz its veterans they are screwing with.

</rant>

---

Exactly! How can this be a reportable collection if they were the ones to screw up. It's ridiculous.

[sisyphuswins]

---

@Anonymous wrote:

Is there any way I could get the outline of the letter he sent (with all personal information removed)? I want to make sure I use the right tone while I am talking to them, and the best way to do that is to use a letter that worked.

Also, did he mail it, or email them?

Thanks.

---

I'll look back through the "credit repair" file to see if I can find it.    And it was by mail, not email.

[Anonymous]

---

@sisyphuswins wrote:

---

@Anonymous wrote:

Is there any way I could get the outline of the letter he sent (with all personal information removed)? I want to make sure I use the right tone while I am talking to them, and the best way to do that is to use a letter that worked.

Also, did he mail it, or email them?

Thanks.

---

I'll look back through the "credit repair" file to see if I can find it.    And it was by mail, not email.

---

Thank you.

[sisyphuswins]

Well, it turns out I misremembered.   He never actually even wrote to the government because it turned out he didn't have to.    He just wrote to the CRA's and here's the paragraph sent:

>>This account is listed as being in collections with a past due balance of $398. This information is incorrect. This is neither a credit nor a loan account. This was an >>insurance policy, provided by the federal government while I was enlisted in the armed services. Once I separated from service, the policy should have lapsed and there >>should have been no further premiums to be paid. I was never contacted by anyone—the government or a collection agency--regarding this account. When I filed my >>taxes 2 months after I left the National Guard, the $380 was subtracted directly from my tax refund. This item should be removed from my report.

I don't know if that's of any use to you, but maybe it will give you some hope at the very least that you can win!