Expert: Kathleen Eads - 6/22/2006

Question
What do we do when we have satisfied a debt and yet the company keeps selling it to different collections agencies?  We have been down this road atleast 3-4 times already.  We have faxed/mailed all of the appropriate documentation to the companies who have purchased the debt for collection to clear our names and have it removed from the list.  Yet once again, today, we received a call from another collections company trying to collect on this same debt.  This has been going on over the course of several years.  We even contacted the individuals whom we paid the account off with.  WE HAVE HAD ENOUGH.  CAN WE SUE OR SOMETHING!!!  WE HAVE BEEN PATIENT FOR YEARS.  I have a file in our briefcase that is getting heavy for an account that was satisfied for quite some time.  We live in the state of NY.  Any advice?  Thanks for your time.

Answer
Check your credit report to see if it's listed as a paid item.  If it's not, dispute the matter with all bureaus and send them proof that you've paid the item off.  (www.transunion.com, www.experian.com, www.equifax.com).

It's real common for debts to get sold over and over; however, someone along the way isn't marking the records correctly to show it's been paid and should NOT be included in any portfolio being re-sold.  

Keep in mind, millions accounts are sold each month, and it's understandable that one might fall through the cracks.  I doubt you would have a case to pursue in court & it might be that you have to keep sending documentation in to prove it's resolved.  A copy of the check (or whatever instrument you used to pay with) along with a letter indicating it's satisfied, is all you should have to supply.  If you haven't solicited a letter like this, I would.  

Honestly though, I would start with the bureaus to see if they can help.  They can even place a consumer message on your reports to let people know this matter is resolved (I've got one on mine, indicating my ex-husband's debts are NOT mine).  

Hope you get it resolved!
Kathleen Crabtree-Eads