account in collection...ridiculous!

[momofrose]

What is the name of your state (only U.S. law)? NJ

Today ordered a copy of my credit report (as I do from time to time) and found that there was a collection for $31.00 placed on my credit report from a "music club" in March of 2008.

Now - I was a member of this "music club" and cancelled my membership in 2008 (after fulfilliing the obligation). I then received a cd set that i did not order. I returned it within days - I received a couple of calls in 2008 and told them to research their records and they would find that the item was returned. I never heard back.

Last year (2009) I noticed this account was in collection.. i disputed it then. The credit reporting agency (Experian) said they verified the account with the "grantor". I added a statement to this account - that this was their mistake and I did not owe this money

it is still on my credit report as a negative...since it's my word against theirs, how can I handle this (without forking over 31.00 for something I returned to them). I need to get this off of my credit report (the only negative)

thank you

 

[Zigner]

What is the name of your state (only U.S. law)? NJ

Today ordered a copy of my credit report (as I do from time to time) and found that there was a collection for $31.00 placed on my credit report from a "music club" in March of 2008.

Now - I was a member of this "music club" and cancelled my membership in 2008 (after fulfilliing the obligation). I then received a cd set that i did not order. I returned it within days - I received a couple of calls in 2008 and told them to research their records and they would find that the item was returned. I never heard back.

Last year (2009) I noticed this account was in collection.. i disputed it then. The credit reporting agency (Experian) said they verified the account with the "grantor". I added a statement to this account - that this was their mistake and I did not owe this money

it is still on my credit report as a negative...since it's my word against theirs, how can I handle this (without forking over 31.00 for something I returned to them). I need to get this off of my credit report (the only negative)

thank you

I was ready to answer, but you've already excluded the one straight-forward reply I could have made.
Tell them to sue you.

 

[momofrose]

I was ready to answer, but you've already excluded the one straight-forward reply I could have made.
Tell them to sue you.

Ok - I'll give it a shot - I tell the collection agency to sue me right? Then what do I do to get this off of my (almost perfect) credit report?

 

[Zigner]

Ok - I'll give it a shot - I tell the collection agency to sue me right? Then what do I do to get this off of my (almost perfect) credit report?

When they sue you and they lose, it will be removed.
Then again, if YOU lose, you'll have a judgment...

It's your choice. But, how much is it actually affecting your score?

 

[momofrose]

When they sue you and they lose, it will be removed.
Then again, if YOU lose, you'll have a judgment...

It's your choice. But, how much is it actually affecting your score?

I am not 100% sure (since credit scores are so difficult to understand) BUT it is the only "account that have a negative status" in my report. From what I understand this can seriously affect a credit score.

 

[Zigner]

I am not 100% sure (since credit scores are so difficult to understand) BUT it is the only "account that have a negative status" in my report. From what I understand this can seriously affect a credit score.

What is your score currently?

 

[momofrose]

It is 680 - I have all good ratio's and not too many accounts open

 

[cosine]

When they sue you and they lose, it will be removed.
Then again, if YOU lose, you'll have a judgment...

It's your choice. But, how much is it actually affecting your score?

So what would Zigner do? Just leave it on the file and ignore it?

 

[TigerD]

This discussion is rather pointless. The OP can tell the collection agency to sue her all day long. They are not going to sue over $31. It isn't worth the time.

The account will remain on the OPs credit report for seven years plus 180 days.

And there is absolutely nothing she can do about. Even paying the debt will simply change the credit report from an outstanding debt to a paid past due account. And ironically, if the the account was removed, the OPs letter to the credit bureau would remain showing anybody who looked that there was a past due account.

Time is the only way to get rid of it.

Personally, I'd pay it. Wait six months and then dispute it. But the OP doesn't sound like they are willing to go that route.

DC

 

[cosine]

This discussion is rather pointless. The OP can tell the collection agency to sue her all day long. They are not going to sue over $31. It isn't worth the time.

Right. So if it is a case where the debt really isn't valid, some other method is needed to resolve it.

The account will remain on the OPs credit report for seven years plus 180 days.

Right. So if it is a case where the debt really isn't valid, they will need to take other steps if that credit file derog is worth the bother.

And there is absolutely nothing she can do about. Even paying the debt will simply change the credit report from an outstanding debt to a paid past due account. And ironically, if the the account was removed, the OPs letter to the credit bureau would remain showing anybody who looked that there was a past due account.

Time is the only way to get rid of it.

Court orders can, if it was not legitimately there to begin with. But that goes back to whether or not it is worth the bother.

Personally, I'd pay it. Wait six months and then dispute it. But the OP doesn't sound like they are willing to go that route.

You're letting your pragmatic side show through. That is the lowest cost way. The OP might be less pragmatic and more principle based (like me, most of the time ... but I have to admit having fallen back to just doing something the cheap simple way).