Credit Reporting and misleading information?

Question

I am in the process of paying off past debts from a few years ago in my less responsible college days. The problem is that these debts are showing up as multiple entries on my credit report due to the fact that these collection agencies keep selling them off, and then failing to update the information... How am I supposed to pay these debts when I don't know who has them, and what the actual balance is on them? Furthermore, why is this practice legal? Once an account is sold to another collection agency, why is the agency that is no longer the holder on the account allowed to have a ding on your credit report? It makes no sense. 1 negative account should equal one negative entry... not multitudes of dings equating to a mutilated credit score. Is this an intentional loophole in the Fair Credit Reporting Act, and how do I fix this mess on my credit report?

To the first answer: The question is not confusing, but your answer is. It doesn't address the question at all. I live in the United States.

Answer 1

Your question is not confusing as the first poster stated and in fact what you are going through happens to many people unfortunately.

You are correct in thinking that only one collector can report it at any one time. The only collector that legally can report it is the one that actually has the debt.

You might start by opting out. (look in my profile for the link to the FTC site concerning opting out)

Then move on to cleaning up your personal information on your credit reports. Dispute any outdated and incorrect information.
Include a copy of your drivers license and a copy of a utility bill that is in your name and for your current address with your disputes to the CRA's. (if your drivers license is showing a state issued number in lieu of your SSN then mark that number out, also mark out the account number on your utility bill. The CRA's don't need that info and by marking it out you will prevent the CRA's from selling or sharing that info)

Then move on to making a blanket dispute with the CRA's for all of the duplicate information.
Hopefully all of the duplicates will fall off at this point and then you can concentrate on disputing the incorrect info the true collector is reporting (which they probably are)

But if the duplicates are verified and not deleted, then you might send the collectors a debt validation (DV) request. Do not sign your signature to anything you send to a collector, only type your name or print your initials. Everything you send to them should be sent certified mail return request (create a paper trail so that if you are forced to take legal action you have proof that you can show the judge you have taken these steps)

If you have to send the DV's, when you receive the signed green card back from mailing it, send another dispute to the CRA's. IF the collectors verify again without removing the duplicates, then if you take legal action they cannot claim bona fide error in verifying it.

Then, before you start thinking legal action for all of the duplicates that are verified, you should file complaints with the BBB, FTC, your AG and the collectors AG Send a seperate complaint for each duplicate account.
(you want to prove to a judge that you have done as much as you can do to correct the information)

You might do some reading in some of the other links I have listed in my profile to the FDCPA, FCRA, etc., to learn your rights. You might also do some reading in the last link listed to a free credit discussion board where you can learn how to use your rights.
I would not recommend using Lex Law. There is no reason to pay anyone to do what you can do on your own for the price of postage. Also, from the complaints I've seen, they do not have the best track record. If you do decide to use them or any other, check them out with your state, the BBB, Rip Off Report, Bud Hibbs, etc first.

Answer 2

This is the biggest reason that you have grounds to challenge this information! They are supposedly not allowed to do this, but guess what? No one is enforcing the law! This administration has made more scabs and scams come out of the woodwork than any other in recent history!

challenge this anyway! I had to declare bankruptcy after an ID theft and I still got my score up from 486 to 730 in a little over a year, so this is an area I know something about!

Go to my website and read it all because the information is too long to post here! I uncover all sorts of scams and I will tell you that this is where Lexington Law came in really handy!
They were very affordable and are used to dealing with this. You don't have to pay anyone if you want to do this yourself, however my money was well spent

Answer 3

Your question is confusing.
Are you from India?
There is no such practise and it is also not possible .
There are collection agents appointed by some banks for collecting outstanding credit card dues,personal loans etc.,
Mobile phone bills are also being collected by this way.

A lender can endorse negotiable instruments such as a
promissory notes and /or a cheques in favour of someone else.
The beneficiary party will have a right to collect the dues.
from the borrowers

If you have made payments towards your debts to an authorised agency , the agency's representative would have given you a receipts , which are valid evidence as to your
having settled your outstanding dues .

Lodge a complaint with the police

.