Is this true? (credit report related).?

Question

I got a copy of my credit report. I saw something on there that was in collections. I had no idea it was in collections. I called the credit agency and was told by them I can't dispute it as I only have 30 days to do so. And I told them I didn't even know I was in collections for it! Can you challenge something that has been in collections for more than 30 days with the credit agency? What do I do to challenge it and what do I say? Thank you. ps It was a doctor's bill for $80.

Answer 1

To add to what Sgt Red posted, this collection agency actually violated the FDCPA by stating you cannot dispute this debt. Failure to dispute within 30 days only allows the collection agency to ASSUME the debt is valid, it does not MAKE the debt valid.

You can still dispute the debt, and the collection agency telling you otherwise is a FDCPA violation.  

Answer 2

Either write the agencies as suggested.

Or clear up the issue with the Collection Agency - by paying or disputing.  Erroneous items get on reports all the time.  

The 30 day thing is a brush off bogus answer.

Answer 3

YES, you may need to call your doctors office to find out when the bill occurred and  go from there . you can correct your credit report.

Answer 4

First thigs first.  Did they (the collections agency) send you any written notice of the debt.  If they did not, then they violated the FDCPA per the following:

15 U.S.C. § 1692g. Validation of debts

(a) Notice of debt; contents

Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial  communication or the consumer has paid the debt, send the consumer a written notice containing--

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or  judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) Disputed debts

If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

(c) Admission of liability

The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

This is where they get that 30 day dispute bs.

If they did not properly notify you as per this rule, then by all means request validation of the debt with them.  Then they will have 30 days to respond.  If they do not validate the debt within the 30 days you can then dipute it with the CRA's

The CRA's will then contact the creditor and advise them of your dispute and request validation.  The CRA's then have 30 days to validate the debt and if it is not validated they will remove it from your credit report.   If the collections agency never notified you, then something is wrong with this picture.

As mentioned above do it right the first time, the CRA's have specific methods for disputing debts.  Here is a link where  you can read about this:

http://www.ftc.gov/bcp/menus/consumer/cr...

Download a pdf file regarding how to dispute with CRA's

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Answer 5

Let me "fine tune" Sarge's answer.

Note the portion of the law that states:  

(c) Admission of liability

The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

Many collection agencies use this law as a dodge to not do their job.  In fact, many of them are not able to properly validate the debts.  The creditors simply send them a statement claiming that you owe a debt, but do not supply any type of written contract, agreement, receipts, or anything to actually prove the debt.

In other words, if they are forced to "put up or shut up" the can't produce anything.  Therefore they hide behind the "30 day validation" rule.

In many cases it works.....there really is nothing in the law that requires them to supply validation after 30 days.  They know this.  So they will ignore your requests.

By the way...when you try to dispute that they never sent you the initial letter giving you the 30 day warning, they will simply state it was mailed to your last known address.   If you moved, too bad.  If not...well it was lost in the mail.  The law does not require that send it by certified mail, and they are relieved from post office incompetence.

So what to do?

Start by sending the credit bureau a dispute stating that the debt is NOT YOURS.  This triggers the Fair Credit Reporting Act laws that require a creditor to validate a debt that may be result of identity theft or fraud.  

At the same time send a demand to validate letter to the creditor.  

If they now fail to send you proper validation, you can sue them for posting unvalidated information to your credit report, and you can even add the credit bureau to your lawsuit.  

This tactic is becoming very popular with consumer debt attorneys, and collection agencies are scared to death of it.

Answer 6

If this debt is valid, send the debt collector a letter with the following statement:

I am willing to settle this issue in exchange for your agreeing to remove this item from my credit file upon receipt of $80 from me. This account will be considered settled in full upon receipt of this amount.

This is called a Pay for Delete agreement.  If they refuse to give you this written agreement first, there's no point in paying them. Never accept verbal promises...get the terms in writing first.

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If the debt is not valid... Per the Fair Credit Reporting Act you have the right to request written validation of negative entries on your credit files. Per this law they must validate the item(s) or remove them from your credit file.

Mail a letter via certified mail with return receipt to all three credit bureaus (Equifax, TransUnion & Experian). Include a photocopy of your driver's license and social security card...If you don't include these, they may write back requesting them, which would slow the process down by several weeks. In your letter, simply state:

Per the Fair Credit Reporting Act, I am requesting written validation of this item.