I have an account listed 2 times from 2 different collection agents on my credit reports..Can they do this?

Question

They seem to sell it to someone new and then reage the debt. To begin with the debt is something that is not at all accurate. It was an electric bill from 4 years ago and my account was wrongfully transferred to someone's else's address after I moved out of state. (I didn't know) I had a balance on it but didn't pay because I found out they kept adding more to it from a wrong address. They didn't believe me that I was not living there. Now they have messed it up even more. How would I fight this in a validation letter to the Credit Bureaus? Do I say it's not mine because it's totally wrong or do I say it's mine but very innaccurate and listed twice?

Answer 1

Only the original creditor and ONE collector can report the same debt at the same time. And, if the collector is reporting the original creditor must report a zero balance.

Generally electric bills fall under the UCC for utilities with a 4 year collecting SOL for all states, but you should always check your states statutes for confirmation. (also, some states have a shorter period for open accounts and allow utilities to fall under the shorter period)

Send debt validation letters to both collectors.
Do not sign any letters to collectors, only print your initials or type your name.
Send everything to collectors by certified mail return receipt.

When you get the green card back from the cert mailings, file disputes with the CRA's. Never claim that a "collection" account is yours.

If it has been longer than 4 years since your last payment and your state uses the UCC utilities SOL, you do have a legal right to send the collector a SOL letter and inform them the account is no longer legally collectible. Which if you decide to send it, you should wait until after you get the 2 collectors sorted out and after validation is provided or 35 days have passed from the date the green card was signed.

As for the re-aging, if you are thinking it was re-aged because the collection agency has a newer date showing for "date opened", that is not re-aging. That is the date the collection agency has received the account.
You would have to look at the credit reports for the removal date - which TU and EX usually report.

You might click on my profile and do some reading in the last link I have listed. You will be able to find your states statutes, sample letter templates, etc. on that site - which is totally free to read and use.

Answer 2

Wow, great question. This is a frequent occurrence especially with all the selling of these accounts over and over again. Look up the 3 major bureaus on the Internet, see below, you are entitled to 1 free credit report annually. At least one is available on line. Send in a dispute to the bureaus and cross reference both the accounts in question. The credit bureau is required to request verification of the debt in dispute. The creditors have 30 days respond from the date the bureau request. If they do not respond within the allotted time then the account will be deleted as is required under the Fair credit reporting act which I have provided to you below. Hope this helps!