My credit report is showing a delinquent account that HAS been paid, how do I correct this? HELP!!!

Question

We are currently looking to buy a home, and have hit the "bump" in the road. It was with a company called MRS Associates, that bought the account from honda. The vehicle was stolen, yet we still paid it off. Now, not only are they saying that our account is outstanding, they are also saying it has been repossessed. This needs to be corrected before we receive our mortgage. Any advice would be greatly appreciated!! Thanks.

Answer 1

Contact the credit reporting agencies directly. Be prepared to present them proof. Contact this MRS outfit as well. Be prepared to present them proof as well. Threaten them with legal action if they are uncooperative. If you do not have proof that this debt was paid you might be stuck.

Also, even if you get the status changed to show it was paid in full you may still have to deal with the account showing as having been delinquent. Accounts in good standing and closed still carry their payment history. Previous late pays are damaging for securing a mortgage.

Do you still own the vehicle, was it recovered? Did insurance pay off the loan? If so you have proof right there it was not repossessed.

Answer 2

Do you have proof you paid it off?  How about getting something from your insurance company about the payoff.

Contact Honda or whoever the vehicle was financed thru.  Try to get something in writing from them that you paid the account.

If you have proof you paid the loan off, send a certified, return receipt letter to the collection agency with copies of the payment proof.  And demand they remove the erroneous info from your credit file.

You may be able to get your mortgage to move forward if you have the payment proof.  Otherwise, it will take minimum 30 to 60 days to get this cleared up and that's provided you have the payment proof in hand.

Answer 3

Be advised that MRS Associates is one of the worlds worst collection agency.  To quote Bud Hibbs " ONE OF AMERICA'S WORST COLLECTION AGENCIES!  Brain dead debt collectors with a street mentality. Very UNPROFESSIONAL in their business and collections technique.

These are VERY nasty people who go to no end with their lies,intimidation and BS!

These collectors give ALL debt collectors a bad reputation. There is no lie they will not tell, everyone they talk to is about to:

Be arrested

Have their wages garnished

Have a judgment levied against them

All of the above.

NOTHING they say or do is to be believed or trusted. Stay FAR away from these misfits of society; they are as BAD as debt collectors can be!!

You can read more about them at this link

http://www.budhibbs.com/debtcollectorpag...

Send them a certified/return receipt letter stating that unless they correct this entry within 30 days with  the CRA"S that you will seek civil suit under the following FDCPA § 1692k. Civil liability due to their violation of the following: 15 U.S.C. § 1692e. False or misleading representations

(2) The false representation of--

(A) the character, amount, or legal status of any debt

This should scare the you know what out of them, they will now know that you know your rights and will fight for them.

Also send copies (certified mail/return receipt) of the letter and any other proof you have to the CRA's that are showing this account and that you are requesting a validation of the debt.  The CRA's will then contact MRS Associates also and make them validate the debt.

This has to be done within 30 days or the entry has to by law be removed from your credit report.

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.