UPDATE AT BOTTOM ABOUT COMPANY THAT PUT THE COLLECTION ITEM ON MY REPORT! Credit Report Score Question

I've worked really hard over the past couple of years to get my credit score to a good number, and noticed today that there is a new account on my eqifax report that shows in collections and is an account that does not belong to me. And because it's a collections account, it has dropped my score 20 points! I asked the woman what happens once it's removed, does my score go back to where it was or do I have to build it again. I could tell that she did not understand what I was asking based on how she was responding to me. So, she finally gave me another number to call and said "they" can help me because she's not a credit score expert. Well I think she just wanted to get me off the phone because the number she gave me does not have a live person, it's just an automated line that gives information on how to order your credit report.

Does anyone know if once they remove that account after investigating it, will my credit score remain 20 points below what it's been, or do I have to build those 20 points back up?

TIA

Message edited 9/25/2006 12:25:51 PM.

Re: Credit Report Score Question

Once removed it should go back up. I had this happen a while ago. The only caveat is that there are other things that go into your credit report. It's not a static thing. It could go up 20 pts or 18 pts depending upon other factors with the rest of your credit report. It could also go up higher for the same reasons. As you continue to pay on time and keep your credit good it should go up over time in general.

So the short answer is yes, it should go back up..how much is a guess.

Re: Credit Report Score Question

No NO No! This is illegal. Write a certified Return receipt requested to the creditor-this letter should say something like this:
[Subscriber]
[Address]
[City state ZIP]

[Collector]
[Address]
[City State ZIP]
[Phone number]

[Date] Certified Mail No.: _____________

Re: Inquiry dated ___: account no. (none)

Greetings:

Thank you for your recent inquiry. This is not a refusal to pay, but a notice that your claim is disputed.

This is a request for validation made pursuant to the Fair Debt Collection Practices Act. Please complete and return the attached disclosure request form.

Be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation;" that is, competent evidence that I have some contractual obligation to pay you.

You should also be aware that sending unsubstantiated demands for payment through the United States Mail System might constitute mail fraud under federal and state law. You may wish to consult with a competent legal advisor before your next communication with me.

Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees.

Best regards,
[Subscriber]

CREDITOR DISCLOSURE STATEMENT

Name and Address of Collector (assignee):

Name and Address of Debtor:

Account Number(s):

What are the terms of assignment for this account? You may attach a facsimile of any records relating to such terms.

Have any insurance claims been made by any creditor or assignee regarding this account?
Yes / no

Has the purported balanced of this account been used in any tax deduction claim?
Yes / no

Please list the particular products or services sold by the collector to the debtor and the dollar amount of each:

Upon failure or refusal of collector to validate this collection action, collector agrees to waive all claims against the debtor named herein and pay debtor for all costs and attorney fees involved in defending this collection action.



X________________________________ _________________
Authorized signature for Collector Date

Please return this completed form and attach all assignment or other transfer agreements that would establish your right to collect this debt.

Your claim cannot be considered if any portion of this form is not completed and returned with the required documents. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. If you do not respond as required by this law, your claim will not be considered and you may be liable for damages for continued collection e

here is some primer info to read:
Primer

You should also send a letter to all 3 credit reporting agencies dispuiting thsi account and saying it is not yours. In order for this acct to stay on your report this creditor must show you original signatures. Read the primer it ewill help you realize what your rights are. GL

Re: Credit Report Score Question

Message edited 9/25/2006 12:15:35 PM.

UPDATE AT BOTTOM RE: COMPANY THAT PUT THIS ON MY REPORT! Re: Credit Report Score Question

Update: some information I found regarding the "company" that put a collection item on my credit report!

"Midland Credit Management ripoff Bought old debt, already paid, to try and collect Nationwide"

"My husband had an old phone bill from SBC Ameritech from appr. 5 yrs ago. We paid it back in Nov. 2005. As a lot of companies do, when we called to pay the debt, they settled for a lower total since we were paying the balance in full. It was shown paid and removed from his credit. We know this for positive because this was one of the things we were doing in order to buy a new house (pay off a 3 old debts) and had to show proof of being paid to the mortgage company.

This week Midland had started to call our house. They ask to speak with my husband, but when I had said he was not home they asked if I was his wife. I said yes (not knowing who they were yet) and the gentlemen continued to tell me the company he was calling from and what it was about. He disclosed the debt amount, as well as who it was from. Of course the amount he gave to me was the difference between what we had origanally owed SBC Ameritech and what we settled for back in November.

I told him this debt had been settled already and he would need to call back and speak to my husband. After at least 1 call every night this week (if not 2) I finally mentioned not-so-politely that we will not be paying them any money since this debt had already been paid. On top of that, back in June or July (when this company first appeared on my husbands credit report) we disputed it through Experian and received a letter back stating they investigated our dispute, found no verification of owing a debt, and deleted it from his credit.

My husband finally told them (after searching on the internet) that they are in violation of law (FDCPA section 804 & 805) by discussing the details of this debt with me instead of him. Also we have proof of this debt being removed when settled AND their claim being deleted from his credit once already.

I advise everyone to keep a close eye on your credit report as often as you can. We had just been checking it every so often and Midland Credit Management just showed up one day. We had never heard from them, received any letters, or anything! We didn't even know what the amount being claimed was even for at that point. It is ridiculous that companies can do this sort of thing!"


I actually never even had an account though with the company they are trying to collect on!

Message edited 9/25/2006 12:25:04 PM.

Re: UPDATE AT BOTTOM ABOUT COMPANY THAT PUT THE COLLECTION ITEM ON MY REPORT! Credit Report Score Question

Unbelievable! I've tried calling this company and have been hung up on 5 times! They are definately very sketchy

Re: UPDATE AT BOTTOM ABOUT COMPANY THAT PUT THE COLLECTION ITEM ON MY REPORT! Credit Report Score Question

Re: UPDATE AT BOTTOM ABOUT COMPANY THAT PUT THE COLLECTION ITEM ON MY REPORT! Credit Report Score Question

Wow that is some really scary stuff. This country puts so much stock in that credit number, but yet when there is an error they don't want to deal with it.

I hope they can fix it soon