Collection Agency Trying to Collect Debt That's Been Settled
That's a good question. If your settlement involved an actual payment to the original creditor, maybe you could track down a record of the payment. Can you work through your bank to get a copy of a canceled check that shows the payment? Does the payment show up in your online banking records? If you can find a record of the money you paid to the original creditor (and any other documentation), you can use that to dispute the debt.
Also, if you haven't done so already, I would contact the original creditor and ask why they've turned your account over to a collection agency again. Tell them when and how you settled it, and they might be able to verify it on their end.
Also, keep in mind the burden of proof is one (A) the credit reporting agencies and (B) the person who is reporting information to them, in case the collection agency. But the burden of proof only arises after you dispute an item on your credit report. Paying and/or settling an overdue account will not remove it from your credit report, but it will update the status of that account. If you truly settled the debt, but the collection agency is reporting it is an active account being collected, then you can dispute it.
When you dispute something on your report through Experian, TransUnion or Equifax (or all three), they are required by law to verify the item in question. If their findings support your dispute -- or if they are unable to verify the item one way or the other -- they must update your credit report accordingly.
Check out the FTC's web page about the dispute process:
http://ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm
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I hope this helps you out some. If you
Labels: debt
posted by Brandon at
4:07 PM
