Collections Adds Debt to Report That Is Invalid/False Identity

[Irate_in_IN]

What is the name of your state?What is the name of your state? Residence in Indiana, collector & creditor in Illinois

I received a notice from a collections agency at my home address, however the name was somewhat off (wrong middle initial, last name spelled differently, address was one digit off). I wanted to confirm this wasn't my bill, and upon contacting the agency I pointed out the errors (my mistake). The agency, instead of acknowledging the bill went to the wrong person, adjusted their computer records to reflect all of MY current information...and the bill then became mine. A short time later, I saw it show up on my credit report.

I contacted the original creditor listed (a national retailer), and obtained a letter stating that my own account with them is (and always was) in excellent standing, and that they have nothing in collections under my name. I forwarded this to the collection agency, who then 'updated' my credit report by listing that item as a "charge-off" instead of removing it completely. As a result, my near-perfect score dropped by ONE HUNDRED POINTS because of this ONE item. I cannot express the detrimental effects this has had, as we're currently refinancing our mortgage. Because of this drop in my score, the rates/fees associated in our financing process have increased $15,000-20,000 overall, compared to what was being offered to us with my "near-perfect credit" beforehand.

Lastly, this agency indicated there was one more step to "closing this matter on their books"...they expect me to fax over a copy of my driver's license and social security card. I feel they've acquired enough information to damage me to this point...I'm holding off on that fax request for now. And again, "closing it on their books" still leaves me with the ding on my report and my lowered score.

How can I safely resolve/repair my credit report and score? Is this shoddy collection agency responsible in any way for the financial expense we've had to take on as a result of their negligence?

[JETX]

Originally Posted by Irate_in_IN

How can I safely resolve/repair my credit report and score? Is this shoddy collection agency responsible in any way for the financial expense we've had to take on as a result of their negligence?

Once you got the debt OWNER to acknowledge that this was not your debt... why didn't you insist that THEY correct their records and get THEIR dog off of you???
Contact the debt OWNER in WRITING (certified RRR) and get them to do their job.

[Irate_in_IN]

The original creditor had listed the debt with their "regular" collections firm in October 2003. That collections firm later sold the debt to this agency that is contacting us now. The creditor will only go as far as clearing up the matter with their "regular" firm; any debts sold elsewhere have been deemed "out of their hands."

[JETX]

Originally Posted by Irate_in_IN

The original creditor had listed the debt with their "regular" collections firm in October 2003. That collections firm later sold the debt to this agency that is contacting us now.

Somerthing isn't right here. If the original creditor 'LISTED' (assigned) then that agent would have no rights to sell the debt that they didn't own.

The creditor will only go as far as clearing up the matter with their "regular" firm; any debts sold elsewhere have been deemed "out of their hands."

Okay, pretty simple. Send the current collection agent a 'cease and desist' letter. A good sample letter can be found at: [url]www.creditinfocenter.com/forms/[/url]

[Irate_in_IN]

Thanks for the replies so far. What we've been able to establish is the chain of possession (retailer - to - collector - to - collector #2), from Creditor #2's correspondence. I do not know if the Original Creditor "Listed" or "Sold" the debt originally but we'll make it a point to find out from the retailer. Good information and I'd welcome any further suggestions in the meantime.