I paid an account off with the original creditor and it is now on my credit report with a collection agency?

Question

the collection agency has it as derogatory and paid how can they put it as i paid them when i never spoke to them or even contacted by them

Answer 1

I agree that you should call the original creditor, but you should also send a validation letter to the collection agency. Of course certain creditors (Capital One, Sprint, Providian) have a reputation for taking money to settle an account and then "selling" the settled debt to a collection agency/junk debt buyer.

Immediately send a letter, Certified Mail, Return Receipt Requested demanding validation. They may send you their printout..this is NOT validation. Demand that they send some tangible proof, such a signed contract, etc. Just be aware that you should NEVER sign your name..type it only. These vultures have been known to manufacture bogus documents.

Here is a sample of what you should send:

Your address

Collection Agency (via USPS Certified Mail, Return Receipt Requested)
Their Address
Their City, State.

Re: Your Reference #

This is in response to your letter of xx-xx-xxxx regarding the above-referenced account. This is not a refusal to pay, but request for validation of this alleged debt.

Therefore we are requesting you provide us with documentation to substantiate the validity of the account in question. In accordance with Section 809 of the FDCPA you are to provide the following information;

1. The name and address of the Original Creditor
2. The original account number and balance indicated;
3. The date the Original Credit account became delinquent and the date of last activity for this account;
4. Proof that the Statute of Limitations has not expired on this alleged debt.
5. Copies of any documents showing that I agreed to pay what you say I owe, including my signature on any contracts, sales slips, etc.
6. If assigned by Original Creditor, document that this is assigned; if purchased, or collecting on behalf of a debt buyer, attach documentation of the amount paid for this alleged debt;
7. Your Agent for Service of Process.

Since it is highly doubtful you can provide all of the above information within 30 days, I am requesting you immediately cease collection efforts and delete this account from your records. I also strongly advise against reporting delinquencies concerning same to any Credit Reporting Agency as doing so would be a violation of FCRA e 1681s-2 concerning 'disputed debt'. Should any agencies have received notification of delinquency concerning this, be assured I will initiate litigation proceedings immediately. We have copied the three (3) major Credit Reporting Agencies with this letter and have sent copies with our formal complaint to Mr. William Haynes, Division of Finance Practices, FTC.

We trust this writing shall provide closure to this issue as we do not deal with Collection Agencies or Debt Buyers. Please be advised that this alleged debt was settled with the original creditor on xx/xx/2007. Any continued collection attempts by your organization will not be tolerated and will result in legal action. Additionally, any attempts to “re-age” this alleged debt will be met with every legal option available, up to, and including suit. “Placed on our floor” is NOT the Date of Last Activity.

We also request that all communications regarding this alleged debt be conducted via USPS, and no telephonic contact is to be made to my home, place of employment, cellular number, or to third parties, as this would not be "locator information" and therefore, a violation of the FDCPA.

Your cooperation anticipated and expected.

Very truly yours,

Your name (typed only)

cc: Original Creditor (get the best contact person from the BBB Business Search site).
Your State Attorney General's Office-Consumer Affairs

I would not advise sending a copy of the check to the collection agency...they have been known to help themselves to funds in people's bank accounts. If you must, at least make a copy and white out your account and routing numbers.

I actually had one collection agency try to collect on a Bank of America credit card that has been open and in good standing since 1992...they picked something off my credit report to try to extort money (right after we prequalified for our house, coincidentally). Squashed them like a bug.

Answer 2

If you have cancel check to prove that you paid off the original balance with your creditor, you shouldn't worry about it. Call them up and send them the copy of the cancel check.

If you carried the balance and not paid off completely. It could be the residual finance charges or late fees are still linger on the account.

They don't just sent you over to collection agency without any attempt to collect the debt. They loose money by selling the account.

Answer 3

Was the account delinquent before you paid it off ??? If so, then the creditor likely farmed it out to the collection agency (CA) before you paid it off. When you did pay it, they passed that info on to the CA. However, the CA can still report that information as a paid collection. It's a ding on your reports for the next 7-1/2 years unfortunately.

Answer 4

Unfortunately that is how credit works.....the cc company contacted the collection agency in the beginning and in the end. It will be on your credit report for a very long time and it will probably hurt your credit because it was derogatory. Even though you paid everything off and it is settled it will always be on your report that you had late payments.

Answer 5

You need to call the credit agency, and they will fax or email you a form that you can fill out. You will need proof of the payment, either through canceled check or credit card payment etc. Its a pretty simple form, but you'll need proof of payment...Thats why its hard to pay with cash, and so important to get a receipt if you do.

Answer 6

You need to contact your original creditor and get them to call the colletion agency.

Answer 7

You can go to annualcreditreport.com and dispute and make them contact the original creditor to verify that it has been paid off.