Sequium debt collection for Charter router

Anonymous · ‎11-30-2020

Please help

My fiancé and I were approved for a loan and a week before closing our lender pulled an updated credit report. She called us immediately because Sequium had placed a debt collection on my fiancé's CR (all three agencies) and his score plummeted 100 points and we are disqualified from the loan. All of this is due to an apparent router that according to Charter wasn't returned three years ago. The router was returned but we don't have the receipt. We never received a notice or call from them or we would have paid, even though we didn't do anything wrong. The total dollar amount is $80. What can we do? We had everything ready to go. My score is over 800 and his is now 650 and were disqualified. We don't have a single negative mark on our credit scores and now we're lost. The collection agency is Sequium. We need to get this removed from his report immediately. Please help.
thank you

Anonymous · ‎12-01-2020

@Anonymous wrote:
Please help
My fiancé and I were approved for a loan and a week before closing our lender pulled an updated credit report. She called us immediately because Sequium had placed a debt collection on my fiancé's CR (all three agencies) and his score plummeted 100 points and we are disqualified from the loan. All of this is due to an apparent router that according to Charter wasn't returned three years ago. The router was returned but we don't have the receipt. We never received a notice or call from them or we would have paid, even though we didn't do anything wrong. The total dollar amount is $80. What can we do? We had everything ready to go. My score is over 800 and his is now 650 and were disqualified. We don't have a single negative mark on our credit scores and now we're lost. The collection agency is Sequium. We need to get this removed from his report immediately. Please help.
thank you

Sorry to hear that. Collections and creditors come out of the woodwork when you apply for a mortgage to wreck your credit and get your attention because they know that you cannot get one until you deal with the debt.

CAs under $100 are cinsidered "nuisance collectioncs" are disregarded in mamy newer score models, but I believe mortgage scores still factor them in, so that is why I assume this is for a mortgage. My SO has one for $97 and does not seem to affect his scores, except on the older models (like mortgage scores).

Did the loan officer say that if you paid it your could proceed? What is the minimum middle score required? You used to be able to get a mortgage with a 620 middle score, but I beleieve some lenders now require up to a 700 (660 on average). I assume this messes up the rate, but in the end, I believe they use the lower of the 2 individuals scores. Maybe try another lender?

I saw someone not too long ago mention the CA and I believe they said they do not PFD (pay for delete), but I would reach out to them and ask, and if you get a "no", HUCA (hang up, call again) and run your way up the ladder (supervisor/manager/their bosses boss/etc) until you get a PFD agreement.

Unless you can find proof of returning the box or can go to the store you returned it to and investigate and have them recall the debt from the CA if they can figure out you returned it.

I would definitely comb through everything and make sure there are no leftover surprises (other debts), as they will crop up, too.

Lastly, can you get this mortgage on your own? You would get the best rate, anyway.

Sorry about your home purchase and I hope you can salvage this. Good luck!

Anonymous · ‎12-01-2020

Thanks for the reply. I can't get this mortgage on my own. We also had a locked in rate of 2.75%. The lender said unless it's removed completely we are disqualified. We have 0 other negative remarks. The only thing that is bringing down our credit is that the lender itself has made several inquiries so far.
I'm sick to my stomach. I suppose we could try with another lender. My fiancé's score is down to 650. We had near perfect credit. And the thing is he did return the router but this was years ago and didn't keep this receipt. Charter never ever reached out to discuss this matter before sending it to collections either.
We just found out last night and have yet been able to speak with anyone. We are going to try and call someone now and resolve this.
I just can't believe this because it comes down to our word against theirs and we have everything to lose.
Will post updates if we resolve anything.

gdale6 · ‎12-01-2020

Call them and arrange a PFD for it, they want their money and dont want to stop your home purchase.

RobertEG · ‎12-01-2020

Unfortunately, at this point in time, it is your word/position against theirs.

They had the right at any time after acquiring collection authority (either by assignment of authority from the OC, if the creditor still owns the debt, or by their own ownership if they have purchased the debt) to report a collection to the CRAs. No advance notice or prior contact with the consumer is required prior to reporting their collection.

Other than calling them and pursuading them that there is no debt in fact (i.e., the equipment was returned), or by your willingness to pay in exchange for their agreement to delete (i.e., obtaining a PFD), there is no immediate way to require their deletion.

You can pursue different means to eventually get deletion, such as a dispute filed with the CRA or civil action to get the matter before the courts, but that will take bunches of time to complete.

Best immediate bet is to attempt to get a PFD acceptance.........

Anonymous · ‎12-01-2020

So we contacted Spectrum this morning. And of course it took them a while to find this because he even has a credit balance on his account. So they could have taken it from there.
They finally found it and he paid them just so it wouldn't continue to escalate. And they said they would send it to Sequium to remove from the credit reports.
They said they cannot put anything in writing but we recorded the call and informed them they were being recorded. They said it takes 5-7 days.

After we spoke with Spectrum we called Sequium and they said they never delete anything from the credit reports they just mark them as paid. That is not what Spectrum said would happen. Either way have no idea who to believe.

Anonymous · ‎12-01-2020

@Anonymous wrote:
So we contacted Spectrum this morning. And of course it took them a while to find this because he even has a credit balance on his account. So they could have taken it from there.
They finally found it and he paid them just so it wouldn't continue to escalate. And they said they would send it to Sequium to remove from the credit reports.
They said they cannot put anything in writing but we recorded the call and informed them they were being recorded. They said it takes 5-7 days.

After we spoke with Spectrum we called Sequium and they said they never delete anything from the credit reports they just mark them as paid. That is not what Spectrum said would happen. Either way have no idea who to believe.

Spectrum will need to recall the debt from them - recalling the authority to collect the debt. Usually this is agreed upon prior to payment. I would get back on the phone with Spectrum and ask they recall it, not delete it. If they update the CA that it is paid, and once that is done, there is no longer a debt to recall. That being said, the CA will simply update it to "paid" and it will not be deleted.

PFD is negotiated with the CA.

If you deal with the OC (original creditor), you negotiate to have the collection authority recalled requiring them to remove the CA from your CR because they no longer have the legal right to collect or report the debt. Spectrum cannot make them delete the CA, especially if they send them the payment.

Good luck!

Anonymous · ‎12-02-2020

We disputed the collections with all three big credit agencies. Experian replied within half a day and deleted it from the report. I don't know but to me that's a big sign that these types of collections are fraudulent and there is no evidence backing this up.
Just waiting on the other two agencies now.

Anonymous · ‎12-02-2020

Now TransUnion just informed us deleted it as well. They removed it immediately.
This took less than one business day.

Anonymous · ‎12-02-2020

@Anonymous wrote:
Now TransUnion just informed us deleted it as well. They removed it immediately.
This took less than one business day.

Congrats! Fingers crossed it comes off the last CR!