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COLLECTIONS & CREDIT REPORT QUESTION

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In February of 1999, I pulled my credit report to discover a collections listing for a past due amount owed to a local phone company by an agency in Illinois. Not understanding where the amount came from I contacted several departments of the phone company whom all of which were no help. In February this debt was apparently over one year old and they had no way of pulling any information on the account because it had been referred to the collection agency itself. They instructed me to contact the collection agency for further information.

I did just that. The collection agency are full of arrogant pricks who offered no more help than the phone company. The only difference between the two were I had some grease ball ******* I was dealing with at the collections agency vs a decent civilized person at the phone company. In any event they wanted nothing to do with me unless I had my visa card readily available. They refused to mail me a copy of the statement claiming I had more than enough time to request it and neglected to do so. Finally I said fine, no statement no payment and hung up.

Throughout the course of the next few months it bothered me this debt existed but I couldnt figure out why and with no support or assitance from the claiming company what else was I to do. Between February and July I contacted the collection agency several times with plea deals, bargains anything to try and resolve the issue.

I offered them double of what was owed on the account if they would accept my payment and completely remove the debt from my credit file. Nothing I offered they would accept.

So here I was being told I have to pay $228 (the outstanding balance) and that I was going to have suffer with the listing on my report as well as receive no statements to even prove the accuracy of the debt.

I became tired of the ordeal and finally gave up. They werent going to get my 228$ and I get absolutely nothing out of it and when I say nothing I mean nothing, not even a statement which I feel I was entiteld to. I do remember having a line with the phone company and I'm not questioning the debt itself because I had moved out of state temporarily (for a job my employer assigned me) and had discontinued the service. What I think happen is the last bill came and I was there to receive it so yes its my neglegence it ended up becoming delinquent. What I do question is the amount of the bill. How it reached 228$ is beyond me. It was a data line, used for local calls only. The amount of the bill was the same each month around 18$.

In any event, I have just relocated. I went to place an order with my phone company for line installation and I was later contacted and told this debt had to be settled before new service could be offered.

I explained this situation to the credit department and they called the collection agency with me on the line. Once they answered the phone company explained we wanted some documentation and statements for the debt. We were transferred to whoever the account was assigned to. When this gentleman answered only I did the talking. I was pleasant and requested the statements again. Keep in mind I had told the representitive on the phone listening how arrogant, rude and unpolite this firm is. He seemed not to believe me or as if I was just another customer finding something to complain about.

After I requested the statement my point was proven. The guy became very uptight, yelling screaming. This is where I got the better of the firm. After his tantrum, I said sir.. just for your knowledge I do have (phone company) on the line. He stuttered, stopped and froze. Finally the representitive from the phone company said "Sir can we just get him a copy of the statement please"..

The guy said "uh uh well we normally dont do this but since you're requesting it we have to.. we'll go ahead and get one out but it will take awhile"

That made my day. I made a bill collector look like a dip**** for the clients he represents.. woohoo..

Anyway, this is really no game.. I've waited about 2 weeks and have not received the statements.. While this really isn't a sufficient amount of time to allow for the statements, I need to get my phone service installed and I'm willing to pay the 228$ to get this over and done with.

The problem is I will not deal with this collection agency again. I've made arrangements and have gotten approval to deal directly with the phone company on this issue. My question is as follows :

Right now on my credit report sits 2 listings for this account. It shows as an "account" in general and it shows under the "collections" category. I could be wrong but I think what will happen if the debt is paid it will be completely deleted from the collections column and show paid on the account listing itself. Am I correct so far?

My guess is the account listing itself will remain on my credit file for 7 years from the date of last activity seeing it is derogatory information showing that the account has been past due 90 days x amount of times. If I pay this account, that date of last activity will change. The time period is measured from this date. How the hell can I avoid this?

Its like if I pay the debt, I penalize myself by placing the information there for another 7 years. If I dont pay the debt, I wont be able to get phone service installed but the time length to deletion of the debt is 5 years.

Also I was talking to a department at the phone company today and the lady I spoke with said shes not sure of FLORIDA laws (where I'm located) but shes had similiar siutations with other companies. In her state if the debt is paid it has to be removed from your credit report, when it comes to something like a phone bill, power bill, etc.

I'm unaware of FLORIDA laws but would that be an option at all? Is there anyway to get this debt in its entirity completely removed from the file? Phone companies do not report your account status to credit bureaus. They only report delinquences if the collection agency that received the debt deems it necessary and if the amount is high enough.

Therefore if I pay the debt off, am I entitled in anyway shape or form to have it removed?

Also, its been said a "debt" never expires. Meaning after a 7 year period you can request the credit bureaus delete the information on the debt and they will. However, I've been advised the creditor can re-report the debt after that 7 year time period. If they do the 7 year time clock starts all over again. Is this true? This would seem illegal in one sense.

Thank you for any replies I receive. A lesson learned for me for sure. Make sure you satisfy your debts on time. And for all you bankrupt bound people, if you can't afford it.. don't buy it.
 


D

David J. Miller

Guest
Once the bill is paid it must show on your credit report as a paid collection. It will remain on your credit bureau for up to 7-years but after about 12 months will have little or no impact on your ability to obtain most kinds of credit.

The collection agency cannot continue reporting this itme after 7 years as it will have been satisfied.
When you send the payment to the phone company, send it certified along with a letter requesting that all 3 major credit bureaus reflect this account as satisfied and request they mail you a copy of each of the letters.

As for not receiving a statement, you should have sent a certified letter to the collection agency requesting a full accounting of the collection item. Their failure to comply would be in violation of the Fair Debt Collections Practices Act (FDCPA)

And I disagree, 2 weeks is more than sufficient time unless I'm talking to you in a time warp and your mail is delivered by pony express.
 

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