Credit Reports

How do you fix your credit report if an original paid collection account is now listed with multiple other collection agencies a year later?


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2007-01-04 03:30:07
2007-01-04 03:30:07

Your best bet is send a certified letter to the agencies who have your debt listed. Be polite and give them 30 days notice to remove the negative information. After 30 days have expired run another credit report to see if they removed the information. If the negative information is not removed you should file small claims judgment against the credit-reporting agency.


Related Questions

No, collection agencies do not have any right to freeze your savings account. Only banks have the right to freeze your account but depends on the nature of the default.

Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.

Collection agencies are usually retained by the establishment that you owe the defaulted debt to, if the borrower ( person in debt) does not want to work with the collection agency handling their debt, the collection agency will then document the account as a refusal then send the account back to the original lender then they will garnish your wages until the life of the loan is paid off.

Collection agencies buy defaulted accounts from original creditors. The original creditor supplies all the information to the collectors that was obtained upon the opening of the account. (Name, SSN, place of employment, etc.).

Include the original account number if you are including the original creditor. Include the account number for the collection agency if you do not have the orignal creditor information and are including them as "Care Of" for service.

Contact the original creditor. Provide proof of your payment. They need to retract the account from the collection agency. The account could have been sold to the collection agency or simply assigned to them. For your purposes, it does not matter which situation applies. You paid the original creditor and your credit report needs to reflect this. After they do what they need to do to get the account back; you then dispute the entries with all three credit bureaus. The original account should show as a paid collection and the other collection account should be removed from your credit report entirely.

Absolutely they can ! The only reason a person needs to deal with a collection agency, is because they defaulted on payments to the original company. That company passed the account to a debt-recovery agency, who paid the sum YOU owe to the original company. If you simply refuse to pay the collection agency, they have the legal right to take you to court to recover the debt !

Yes! Creditors can garnish a personal checking account. As long as the creditor has the checking account info they can garnish a checking account.

The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.

No. There are laws regulating how a debt is collected. The original creditor can sell an account, for example that is $5,000 to a third party for any amount they agree on. Even if the account was sold for $500 the collection agency can get the entire $5,000+ or at least try.

I presume your question is "how did your debt wind-up at a collection agency". There are 2 methods: (1) the original creditor sold your account to an agency for a price that is a fraction of the outstanding balance on the account (so the collection agency now is your creditor legally), (2) the original creditor contracted with a collection agency to get you to make more payment on the debt than you have while interacting with the original creditor only. In either case, a collection agency is a company that makes a profit by getting debtors to make a payment of sufficiently greater amount (than they had been making to the original creditor) such that a greater return can be realized from this continued effort to collect the debt, and collection agencies usually are profitable companies. In my personal opinion, the first method (# 1 above) is used in the vast majority of delinquent debt collection situations. Any creditor organization of at least medium business size has enough staff to attempt to coax the debtor to make more payment, so there would be no reason to contract a collection agency to try again. That latter point being understood, collection agencies sometimes resell a debt account to another collection agency when they give-up on trying to get more payment from the debtor (and the account has not been settled).

Collection agencies are governed by federal and state laws. Debtors are given protection under the Federal FDCPA. A collection agency cannot "threaten" you with anything. They can inform you that your account may be referred to a collection attorney and legal action may be initated. Please familarize yourself with the laws pertaining to collection agencies. Be advised, that some of the laws do not apply to the original creditor.

Collection agencies can't add charges. Fees and interest charged to your account are per the terms of your contract with the creditor.

More unlikely there is a mix up. I would verify the account number is the same. If it is then I would contact the original creditor and tell them the problem. They can direct you to the right agency. With today's electronic transfer of accounts this does happen. Rarely but it does happen.

Legal or not, this happens every day. Inform the collection agency and the original lender that this was included in the bankruptcy. The collection agency may want to see proof but usually the original lender will call and request that - that particular account be sent back. Make sure you get something in writing from the original lender--and that the collection agency REMOVES their account off your credit report--check your report 3 to 6 months later, to make sure this has been done. If you don't want to wait--send a copy of the signed letter on the lender's letterhead to all 3 collection agencies and wait for their response. Even though it will take about 30 days--this is the quickest way.

I assume this means removing it from the CR. In which case you can't. It may eventually be updated to show the original creditor has reassumed the account. However, it is still a debt owed and still reportable. If a collection account has "been returned" to the original creditor, then the collection agency would not be able to provide verfification of the debt should this be requested. You could write a letter of dispute to both the credit bureaus and to the collection agency requesting a verification of debt. If this were provided despite the fact that the account is no longer theirs to verify, that would constitute a violation of law. This is often the first step many consumers take in gathering evidence of willful non-compliance for lawsuits against collection agencies. So, even though it may happen, it would put the CA in a precarious situation.

You can write a letter of dispute to the collection agencies if that is who listed your credit account wrong. If it is a company, you can write a letter directly to their account or customer service department.

A collection account that has not been paid off.

They are two different issues. A derogatory (negative) trade line is a record of a consumer's past and current buying and payment activities. A collection account is generally an account that has been defaulted on. It some cases it refers to the original creditor or the OC collection representative. Or it can be in referance to a third party that has purchased the account.

Consumers (although some do not realize it) authorize the creditor and agencies and legal representatives acting on the creditor's behalf to access their credit report when they sign the original account agreement. It is perfectly legal and there is nothing the debtor can do to prevent the action.

It may be zeroed out w/ the orig company because they sold it to the collection people. DO NOT PAY COLLECTION AGENCIES ANYTHING!! google "fair credit act". lots of info

To access to bank account as such, no. But if the debtor agrees to have ACH for payments, then the creditor or collection agencies can withdraw funds, or depending on the state laws a Judge can authorize to garnish wages from the bank. Find laws that apply to the debt in the resources box

No, the collection agency is now the rightful owner of the debt in question and the original creditor has removed the account from their books.

It would depend on the state laws that are apply to collection agencies and collection procedures. In many states they can add fees incurred for the collection of a debt and interest on the amount of the debt itself.

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