Five Years Later

[bellasmom]

What is the name of your state?Pennsylvania
I received a letter from a collection agency a few weeks ago saying that I owed $100.00 from an account with At&t Wireless. I immediately called the collection agency, and they told me that it was an account from 1999, and that it hadn't been reported to the credit bureau. They said that if I paid $87.00 immediately, it wouldn't be reported to the credit bureau. So I paid the money with a check over the phone.

Here's the problem. In 1999, my CellOne account was bought out by AT&T, and AT&T offered me a comparable plan. I was unhappy with the comparable plan, and AT&T told me that I could cancel my contract with no termination fee. I immediately canceled my account. I received a final bill of $9 and some change, and paid it, thinking that was the end of it.

I think that the flat $100.00 that AT&T says I owe is a termination fee that I shouldn't have to pay. However, the collection agency says that they don't have any information on what the $100 is owed for, and AT&T will not talk to me about the account because they sold it to the collection agency.

As far as I'm concerned, it's blackmail; you give us $100 (or $87!), or we'll report you to the credit bureau. I know this isn't a huge amount of money, but it makes me angry. It's enraging to receive something like this from so long ago, and just have to give up the money based on pretty much nothing but a threat to blacken your credit. Did I get ripped off? Does the collection agency or AT&T have to prove what the money is owed for, or do I need to prove I don't owe it?

[Ladynred]

You caved in, just like they wanted you to.

First of all, if the debt really was from 1999 - meaning nothing was ever paid since then, then the statute of limitations on the debt ran out in 2003 !! The SOL in PA is 4 years and they had no LEGAL leg to stand on to collect anything. You could have been rid of them with a cease and desist letter.

Second, are you SURE its NOT on your credit reports ? These CA's will LIE, LIE, LIE - you cannot trust them. Have you checked your reports recently ?? Many of these scumbags use the tactic they pulled on you - and then report it anyway AFTER you paid them -- instant black mark on your credit.

Lastly, you have the right to demand validation of ANY debt any debt collector says you owe. Per the Fair Debt Collections Practices Act, you can demand that they PROVE the debt is yours and that its valid and once you do that they must cease ALL collection activity until they provide validation. You should read the FDCPA and if you still want to, read about validation at [url]www.creditinfocenter.com[/url]. You wouldn't just hand over money if I walked up to you on the street and said ' you owe me $100 or I'll ruin your credit' would you ?? Of course not, and that's why validation is part of the law and your right - but you have to know your rights first.

[bellasmom]

I am absolutely livid now. Yes, it was from 1999. I have made no payments on it because I didn't know it existed until just recently. I already paid them, and it has already been taken out of my checking account.

It was not on my credit report about a month ago when I pulled my report.
Do you think I can get my money back? This is just crazy. Well, if nothing else, now I know. Still infuriating though.

[bellasmom]

I have written a dispute and verification letter from the template at creditinfocenter.com. I already paid them, but maybe I can get my money back. I am so irritated with myself for just paying it, but the whole "we'll ruin your credit" thing freaked me out. Do you think there's any chance of getting the money back?

[Ladynred]

Unfortunately, once they have their grimy mitts on your money, the won't let go of it.

[bellasmom]

PA

Unfortunately, I need more help on this subject. I checked my credit report through all three credit reporting agencies a few weeks ago. One agency (equifax) does have the AT&T account listed, and it was reported in 1999. The same debt is also showing up as being reported by the collection agency. In the column for account number, it says "at&t account xxxx", so it's definitely the same debt. It was reported in 11/04, 3 months after I paid the debt. It says that it was paid, but not in full ( I paid the $87 they offered to take as full payment). I disputed the listing by the collection agency through equifax, and have not yet received anything regarding the matter. I also called the collection agency to dispute the report. I had to leave a message regarding my problem, and was told that I would receive a response within 30 days. It will be 30 days on March 20th 2005.

Can the same debt be reported twice? If not, which one should get tossed off my report? I'm not very happy about having this alleged debt hanging around on my credit report for seven more years.

I was also told by the collection agency that if I paid "today", it would not be reported to the credit bureau, and that I would only have to pay $87, so I did so. Since this was obviously a lie, is there anything I can do?

Sincerely,

Looking Before I Leap

[Ladynred]

Unfortunately, you are stuck with the 2 entries - 1 from the original creditor and 1 from the collection agency The good news is that since BOTH are negative items, they can NOT stay on your reports for more than the 7-1/2 year reporting period. That reporting period started with the ORIGINAL DELINQUENCY DATE from the original creditor. If it went sour in 1999, then it MUST drop off in 2006. The collection cannot survive the obsolesence of the ORIGINAL debt. Even though you paid it, the original delinquency date does not and cannot change.

[Vote4Pedro]

I would try to have it removed from your credit report. I had an issue with Sprint recently. They charged me a cancellation fee even though I continued my account through the period I was required. After I cancelled my account, I continued to use Sprint with my fiance (we had a joint account).

Anyway, I have been fighting this for 2 years and FINALLY I have it resolved. I don't have all 3 of my credit reports yet, but I am sure it's on at least one of them.

I wrote multiple letters to Sprint and called Sprint and the two collection agencies who have tried to collect. Sprint wouldn't do anything because it was in collections and collections wouldn't tell me anything about the original debt. I sent dispute letters to collection agencies. One sent the account back to Sprint. Sprint sold it to another agency (Calvary Portfolio Services). Like I said, I have been fighting this for years. Finally, after talking to literally fifty people on different ocassions and listening to the people at Sprint tell me I should have had a credit and they would credit my account (it never happened), I wrote a long letter to Sprint's president/CEO and copied the FTC, my lawyer, Sprint collections, Sprint customer service, and the collection agency. I described my situation and the way I'd been treated. I sent it with a return receipt certified mail. It cost $4.35, but it was worth it. I got a call from them in a week and they are taking care of it. A credit has been issued and I will be getting a letter from them that I can present to the credit bureaus so the negative information will have to be removed from my account.

If you can get someone at the cell company to acknowledge that you weren't supposed to be charged that $100 and you can get a letter saying that, you will have all you need to have it removed from your credit.

Keep copies of everything and notes of every conversation. Go to the top. It's the only way to get things resolved sometimes. It worked for me. FINALLY!

Good luck!

HT