Expert: Creditwrench - 5/20/2008

Question
Hello,
I have been prudent in maintaining a superclean credit history since I first got a credit card at the age of 18. From that day, I knew the importance of impeccable credit and I have paid-in-full and on-time, all accounts (revolving and mortgage), and have had zero negative entries on my report until now.

It appears that a utility bill of $300 dollars was sold to a collection agency when I moved residences... Not knowing I had an outstanding balance. When I re-established service (no more than 2 months later) from the same utility company at my new address - I automatically paid in full (to the utility company) the prior balance.

I just checked my credit and I now have a collection account on my report in "Closed" status. All other histories on revolving and mortgage accounts are still flawless, there are no new fincancing inquiries, and my credit score has dropped 100 points from the last time I checked it (about 2mo ago)!!

Is there anyway I can get this account removed from my credit history given that I never spoke with them, never paid them, never interacted with them!! If not, is this going to destroy the credit that I have been building for so many years?

Many thanks!

Answer
Yes, there is. The answer to your question is almost exactly like the one I just answered before your question.

Given that you paid the same utility company all that they said you owed them and that included the $300 then you can use my sneaky trick and sue the debt collector in federal court. Why not check out the answer I gave the previous questioner and see how I told them to do it. If you can't access that answer then call me at 405-684-9297 and I will tell you about it.

I will tell you that in order to get it to work you will have to send the debt collector a certified mail return receipt requested demand for validation of the debt and deny that you owe the debt and that you dispute the debt and every portion of it.

If you do that they may very well check with the utility company and find that you don't owe the debt and if that happens then the only cause of action you might have would be that they are in your credit reports with no permissable purpose.

So before you do anything else you need to send that validation demand letter. That may end the problem of their bothering you but won't cure the credit report problem. You will have to sue them in federal court to get that done.