Collection agency screwed my credit: can I sue? And how?

[mrv]

I live in California. In September 2001 I had a dispute with an HMO dentist regarding the payment for unauthorized services. The dentist sent the
matter to the collection agency. I paid the collection agency, and received a letter from them stating that the collection will NOT be reported to the credit bureaus because I paid on time.

In October 2002 I wanted to refinanced my house, and was denied the best rest due to the unsufficient credit. I found out that the collection agency reported my collection in Septmebr 2002, and ruined my credit. I contacted the collection agency, and they admitted that they reported the collection, but added that they sent a letter to the credit bureaus asking not to show
the collection on my credit. They said that now the matter is between me and the credit bureaus.

I would like to sue the collection agency. Do I have a case?


Milena Verzeanu

 

[Ladynred]

How does it show on your credit report, as a 'paid collection' ? If so, then they really didn't do anything wrong as far as inaccurate information being reported, so you can't get them on that. If you dispute with the CRA's, they'll just verify with the CA that it is accurate as a 'paid collection' and you won't get it off.

You can probably try to sue them in small claims court for renegging on their agreement, per the letter they sent you. Then you can try for damages.. defamation, etc. since the entry they submitted against their word, has caused you to lose the best rates, ruined your credit etc.

Check over at www.creditinfocenter boards, they have a section for suing CA's and CRA's. You might get some more helpful input there.