AboutChris Ebert Expertise I can answer questions for Texas and California residents concerning issues that involve creditor and debtor rights. Specifically, I can answer questions concerning: FDCPA, FACTA, FCRA, and Texas / California state collections violations.
Experience For the last 6 years I have worked as a Sr. Paralegal in a law firm (http://www.henleycreditlaw.com) that defends debtors against their creditors. I have reviewed thousands of credit reports and under the supervision of our attorney helped hundreds of client resolve their credit issues.
Organizations Henley & Henley, PC
Education/Credentials BBA University of Texas at Austin
My question is this. I received at notice dated September 1 from a collection agency that I owed money for a medical bill. The account was not reported to the credit bureau. The letter stated I could pay the lump sum at 65% of the original amount and the account would be settled. And this offer was good for 45 days. So I sent in the check along with a copy of the letter in late Sept. My check was deposited on the Oct. 1. Now, here it is a week later and the collection agency added two new negative accounts to my credit report for the other 35%. When I called them and asked why they would report the accounts when it was settled already and also why they reported the left over amount , the lady said bec they didnt know it was settled. I told her I sent in a copy of the settlement with the check and why in the world would I send in a check for that specific amount. So they had to know. She said it takes 30 days to update the system before it goes to zero balance and that the negative accounts would remain. After about 20min she finally saw what I was saying and said she would transfer me to the in house credit bureau dept (go figure) to see if they can get it removed. When she transferred me, the automated guy talking kept saying thank u for calling At&t and said they were closed for the day.
Note: My medical bill has/had absolutely nothing to do with AT&T.
I plan on calling again, but is what they did fair? Can they do that? And what should be my next course of action? I have never dealt with collection people before so I was a bit naive.
Answer Kristine,
I am sorry that this happened to you.
1) This is a common tactic used by many collection agencies.
2) Before you pay any debt to a collection agency you must always get in writing a letter from them stating that a) they will accept $xx for a settlement b) they will remove the negative entry from the credit report c) this will be full and final settlement and release
3) At this point I would demand that the situation be corrected in writing and sent certified mail. I would also attempt to call them but what ever resolution you get from them, have them put it in writing. Finally, make sure you get names, extensions, and employee badge numbers so you can reference who you spoke with.
I wish you the best in dealing with the collection agency.
