Can My Credit Report Have More Than One Collection for the Same Debt?

Which collector should you pay?

Here's a horror story for you: You let a debt fall delinquent and the creditor sells it to a collection agency. Two years later you pull your credit report and discover not one, not two, but three collection accounts on your credit report for the same debt. Needless to say, your credit scores are in the toilet. This may sound farfetched, but multiple collections are a relatively common result of sheer carelessness.

Just as original creditors eventually sell unpaid debt to debt collectors, collection agencies also sell "uncollectable" debts to other debt collectors. The problem debtors often run into is this: debt collectors, like original creditors, often report their company's accounts to the credit bureaus. This results in a collection tradeline appearing on your credit report.

When the collection agency sells the debt, the new collection agency may also report the debt to the credit bureaus. If the previous debt collector doesn't bother to delete its tradeline from your credit report when it sells the account, your credit report will eventually contain several different collections for the same debt.

Multiple Credit Report Entries for the Same Debt Are Against the Law

It's perfectly normal to have two entries on your credit report for the same debt if those entries are the original creditor's account and the resulting collection account. Any further entries for the same debt are prohibited--even if each tradeline contains different account numbers (which they almost inevitably will). This isn't in the interest of protecting you, but rather in the interest of protecting future creditors.

Your credit scores are based on the most accurate portrayal possible of your past financial history. Multiple collections for the same account deal a devastating blow to your credit scores--making you appear to be a much higher lending risk than you actually are. By ensuring that multiple collection accounts can't appear on your credit report for the same debt, federal regulations protect lenders from making judgment errors that could ultimately affect their profit margins.

Prohibiting multiple collection accounts also protects the collection agency's interests. If you see a plethora of collection accounts on your credit report, you'll probably be confused about whom you should pay. This could lead to you paying off an account with a collection agency that no longer owns the debt. Unfortunately, that payment can "vanish" into thin air. The collection agency that actually owns the debt will continue to demand payment and the collector that actually received the payment may conveniently have no record of receiving it. This cheats both the debt's actual owner and the consumer.

How Long Can These Multiple Collections Stay on Your Credit Report?

Federal law restricts collections to only seven years on your credit report. This seven-year clock begins on the date the debt first falls 180 days' delinquent. This generally coincides with the date that the original creditor charges off the debt and sells it to a collection agency.

All the collection accounts that appear on your credit report for the same debt must fall off when the original creditor's tradeline falls off. This means that some collection accounts may only remain on

After 7 years, all collections must come off.

your credit report for a few years---if that. For example, if a debt collector reports a debt six months before the credit reporting period expires, its tradeline won't stick around for a full seven years. In order to comply with the Fair Credit Reporting Act, the company must delete the tradeline in six months.

Is There Any Way to Remove Multiple Collections for the Same Debt?

I plan on making a more in-depth post about this soon and providing a step-by-step guide to help you get rid of any clone collections. For now, however, just know that you aren't stuck with these tradelines forever. The Fair Credit Reporting Act, which governs credit reporting practices in the U.S., provides you with a dispute process.

You aren't limited to only disputing incorrect information. You can also dispute information that is obsolete, such as multiple collections or accounts that appear on your credit report for longer than the credit reporting period allows. You can dispute via mail, over the phone, or even online. Just be sure that you dispute multiple collections as multiples. If your dispute goes into the system as an accuracy complaint, the collection agencies in question are a lot more likely to validate the accounts and they won't get removed.

Long story short, you aren't alone. It's very common for consumers who've had financial difficulty and ended up with several delinquent debts to discover that their credit reports reflect more than one collection account for the same debt. As tempting as it may be to ignore the hassle, removing any additional collections will help you maintain the best credit scores possible until the credit reporting period expires.

Related Posts:

How Much Do Medical Collections Affect Your Credit Score?

Improving Credit Scores After Collections

Removing Re-Aged Collection Accounts From Your Credit Report

Q&A: Collection Agency Sent Bills to Wrong Address

Hi Lee,

My name is Melissa and I came across your page form a google search. I am hoping you might be able to provide some guidance. 

In April, I received an email notifying me that there was a change to my credit report. There was a debt from 2010 (an ambulance ride to the ER) that was added. After some digging, turns out the account was sold in July 2010 to the collections agency. The agency is telling me they never received it until March 2011. Initial bills were sent to an address I haven't lived at in years, also had two other addresses on file, places I never lived, nor know anyone that lived or lives there. I have since began the dispute process. 

I am getting statements printed out from my bank from that time to see if there were any payments made to make sure this is in fact an unpaid debt. 

My question: Am I responsible after all this time? This is clearly an error on their part. At the time, I asked the hospital representative if all bills were set up on a payment plan and she verified that they were and I made monthly payments. If this was left off, why did it take 4 years for it to come to my attention? I live in NJ, however I am in the process of moving to NYC. The bill is for something that happened in Florida.

Any insight, recommendations or information would be greatly appreciated. Thank you!

--
Melissa 

Melissa,

The statute of limitations (which is the amount of time a creditor or debt collector can sue you for a debt) differs by state. In Florida, the statute of limitations is four years. In New Jersey and New York, its six years.

If you lived in Florida until July of 2014, the statute of limitations would expire and you would be free to move to another state without fear of getting sued--even if the new state's statute of limitations is much longer than Florida's.

The problem that arises here is that, if you move before the statute of limitations expires, the SOL is "tolled" in your original state of residence. That means that, as soon as the collection agency discovers that you are no longer living there, the clock on the statute of limitations just stops ticking. When and if you move back, the statute of limitations goes back into effect and begins to time out from where it left off when it was tolled.

If the collection agency was not aware that you moved out of Florida until now (and you didn't give them the date that you moved when you spoke with them) its very possible that the statute of limitations was never tolled and simply timed out on its own. That would mean you're safe no matter which state you move to. If the addresses the collection agency was sending letters to were in Florida and you didn't disclose your new address until after July 2014, you should be safe from a lawsuit.

If, however, the collection agency is aware of the fact that you moved, they can generally opt to go by the SOL in your current state. This is advantageous to the collector, since they'd have until July of 2016 to collect the debt. Now, this part is important, so listen well:

The date that the collection agency originally received the debt is irrelevant. The only date that matters is the date you made your last payment (or, if you never made any payments, the date that your payment was originally due). It makes no difference whatsoever that the collector didn't get its hands on the account until 2011. The SOL and the credit reporting period are calculated using the dates from the original account.

 If a collection agency could use its own dates to determine the statute of limitations and the credit reporting period, no one would ever be free from collection lawsuits and bad debts would hang around on your credit report indefinitely. So don't worry about the date they bought the debt or first reported the debt. It just doesn't matter.

You mention that you are contacting your bank to determine if you made any payments on the debt. Normally making a payment on the debt restarts the statute of limitations from scratch. In Florida, however, you have to provide the creditor with a written promise to pay in order to restart the clock (Just for reference, the same is true in New York). So unless you promised to pay the debt in writing, the SOL was never interrupted and may have timed out in Florida.

The statute of limitations and the credit reporting period are two entirely different things. The credit reporting period begins 180 days after your last payment and lasts for seven years. As I stated above, the date the collection agency bought the debt or originally reported the debt doesn't matter. They have to remove it after the credit reporting period expires. The credit reporting period is the same no matter which state you live in.

Your responsibility for the debt is a gray area. Technically, if you took the ambulance ride and the debt is legitimate, you are responsible for paying the debt no matter how many errors the hospital or collection agency made when trying to collect it.

You said you spoke to a hospital administrator that assured you all bills were set up on a payment plan. If you have that in writing, that gives you grounds to fight this. You'll still be responsible for paying it, but you can probably use that statement to convince the hospital to pull the debt out of collections (and no matter what they tell you, they CAN pull the debt out of collections--even if the account was actually sold and the debt collector isn't working on a contingency) and remove it from your credit report. If all you have is someone's word, you lack proof that this was a legitimate error. It's also possible that the ambulance company bills separately from the hospital itself and that's what caused the issue.

If the ambulance company does not bill separately from the hospital and you have a statement in writing from the hospital noting that all of your debts have been added to a payment plan It could be argued that, if they hadn't made these errors, you would have paid the debt before it ever hit your credit report. In general, however, you aren't absolved from your responsibility to pay a debt simply because you didn't receive a bill.

If the statute of limitations has expired, you are no longer legally responsible for the debt and they can't force you to pay it. Keep in mind that the collection will remain on your credit report regardless of whether you pay the debt or not, and paying a collection account does not improve your credit scores. You do have the right to dispute the debt both with the collection agency itself and the credit bureaus.

If you have the funds to do so, you might consider hiring a consumer law attorney to help you. I don't know the full details of your case, but the original creditor obviously made some blatant billing errors that cost you your good credit rating. A good attorney should be able to help you straighten this out, even if it means filing a lawsuit or two to strong-arm the hospital into taking you seriously and recalling the debt.

One last thing, while you're disputing the collection you should also consider disputing those addresses on your credit report for places you never lived. You don't want another creditor to bill you at one of those addresses only to have this nightmare scenario repeat itself.

Best of Luck
Lee

Q&A: NCO Re-aged Collection Debt on Credit Report/International Identity Theft

Lee,

I found your info by googling NCO Collection Agency.

I am a United States citizen living in Canada.  I moved here in Dec. 2002 and would visit home every few months as my parents were both ill and were both deceased in just over three years.  There is a collection account on my credit report that I didn't recognize at first.  I injured myself in the 3rd week of January 2006.  My father died on Jan. 28, 2006 and it honestly slipped my mind.  Quite frankly, it took me until this past April to even remember I had been hurt.  Now, there's this entry that shows NCO "opened" it on Aug. 16, 2007 and a "report" date of May 17, 2009.  To date, I have not been contacted by them. 

I was reading your comment to Lisa dated June 19, 2014 on collectionagencydebt.blogspot where you stated, "If the original default date was more than seven years and 180 days ago this shouldn't be on your credit report at all and you should be able to get it removed as obsolete." and wondered if this also applied in my case. 

Further complicating matters, someone in my hometown has apparently obtained cell phones under my name and social security number and (according to the credit reporting agencies) a mortgage.  It is one of the security questions and when I reply I have "no mortgage", I get an "incorrect answer" and a phone number to call.  My friend is the retired Chief of Police in my hometown and informed me that until I move back home, there is nothing that can be done from here.

Any advice you have to give is appreciated and I thank you for your time.

Sincerely,

Nancy

Nancy,

The seven-year credit reporting period is the same for everyone. so what I told Lisa would also apply to you. Debt collectors generally have to remove their negative tradelines when the original creditor removes its charge-off. Unfortunately, you owe a medical debt, and medical debts don't come with an original creditor. Particularly insidious collection agencies use this to their advantage. The original creditor's report is the yardstick that both you and the credit bureaus can use to determine if a collection is obsolete. Medical debts don't appear on your credit report if they're paid on time, so there is no original account for the debt on your credit report. Without an original creditor account on file, the burden of proof is on you to demonstrate that the collection agency is in error. 

Here's a fun fact for you. The Federal Trade Commission already hit NCO with the largest business fine in history for altering collection accounts dates to ensure they remain on debtors' credit reports far beyond the seven-year limit. The clock on the credit reporting period should start ticking when you stop paying the original creditor--not when the collection agency receives the debt. 

If you dispute this directly with the credit bureaus, NCO will probably verify it as accurate. What you want is some proof that the original debt was incurred in 2006, not 2007. An old medical bill for your injury that notes a late payment and how late the payment is (i.e. 30 days late, 60 days late, etc.) should work just fine. You can also check with your insurance company or the original medical provider for the date of service. The hospital records may not go that far back, but your insurance company might. It can't hurt to try.

Black out any information you don't want to share with NCO on your documents of proof (the details of your injury, for example, are none of their business) and make a photocopy of each item you're using as documentation. Highlight the date. Also print and photocopy the credit report pages from each of your credit reports that reflect the error.

Write NCO a letter stating that the account they are reporting to the credit bureaus is obsolete. Note exactly when you incurred the debt and refer to your medical paperwork as evidence. Point out that you never made any payments on this debt, thus the date of delinquency occurred in 2006, not 2007 and the debt should no longer appear on your credit report. Tell them that re-aging a debt is against the law, and that you have the right to sue (and will exercise this right) if they don't immediately delete this tradeline from your credit report. 

If they don't delete, make photocopies of the same information you sent to NCO and send the proof, along with a letter explaining that this debt is obsolete and must be removed, to each of the credit bureaus whose files reflect the collection. If you want to make absolutely certain that your dispute falls into human hands and doesn't get shuttled into the computer system (the computer system neither acknowledges or analyzes your evidence) write out the letter by hand. Make sure to send both the NCO dispute and all credit bureau disputes via certified mail, return receipt requested. 

I have to wonder though....why does this matter? You're living in Canada. I used to live in Canada. American credit doesn't mean squat over there. Although they have the same credit bureaus, their credit system is based on Social Insurance numbers, not Social Security numbers. You can't pull an American credit report using Canadian credit bureaus. Their system simply isn't set up that way. 

On to the case of identity theft. Identity theft is serious business. Most debts don't follow you to Canada, but if the identity thief racks up enough of it, sooner or later a creditor is going to find you and outsource that debt to a Canadian collection agency which will hunt you down on your home turf in Canada. Don't let this happen. 

You need to file a police report. I think what your policeman friend meant wasn't that you had no course of action to defend yourself but rather you can't fill out an identity theft report with the U.S. police. Go down to your local police station, explain that your identity was stolen and ask to fill out a police report. You can use a Canadian police report the same way you would use an American police report. Use your Canadian police report to file an identity theft complaint with the credit bureaus. 

Make sure to point out that the report was filed in Canada because that it where you're currently living. You don't want the credit bureaus to think that you're a Canadian citizen and dealing with Canadian identity theft concerns yet somehow reported the theft to the wrong bureaus. If that doesn't work (I can't see any reason why it wouldn't unless you keep running into idiots who don't know what they're doing. Believe it or not, the credit bureaus employ scores of these people) Wait until your next trip to the U.S. and fill out a police report about the identity theft there. According to the FTC, you can file a police report either with the police station where you live or the police station where the identity theft occurred. 

You'll also want to place a fraud alert on your American credit reports pronto. The following resource from the Federal Trade Commission should provide you with a detailed guide on exactly what to do when you find out your identity has been stolen: Federal Trade Commission: Identity Theft. 

I'm going to list some numbers for you to call if you run into problems along the way. 

• Federal Trade Commission headquarters: (202) 326-2222
• Experian:  1 (888) 397-3742
• TransUnion Identity Theft Department: (800) 680-7289
• Equifax fraud alert: 1-888-766-0008

If you are financially able, consider contacting a consumer law attorney within the U.S. You can do what's necessary to take care of these issues on your own, but its time consuming and extremely stressful. A good consumer law attorney has extensive experience doing this very thing. In addition, collection agencies and credit bureaus alike take lawsuit threats from an attorney much more seriously than lawsuit threats from the debtor. You also have to consider that this person committed a major fraud by purchasing a house in your name. You would retain the right to file a civil suit against the individual and force them to pay for your attorney. 

I cannot stress this enough: Do NOT ignore this. DO NOT. If this person has gotten a mortgage in your name, she knows that you are living out of the country and plans to simply live as you indefinitely. Someone has to bring her to justice. A fraud this significant can carry jail time and, lets face it, this lady belongs behind bars so that she can't turn around and do this very thing to someone else. 

Best of Luck,
Lee

Q&A: Collection Agency Not Updating Credit Report After Debt Settlement

Hello Lee,
I hope you can help me here. I called a collection agency to inquire about a debt I have settled and asked why this was not reported to the credit bureaus and they said they did even if my Equifax still shows it as unpaid. then they asked to talk about another account and I was surprised. It is an old account from 2005 that was not showing on my CR and my first reflex was to say I have no knowledge of this and she kept asking if this was my mine and still said I have no knowledge of it. can they use this to restart the SOL?

--Anonymous

Anonymous,

Ok, lets address the credit reporting issue first. Federal law requires the collection agency to report changes to your account and requires that the credit bureaus keep these records updated and accurate. All too often something gets lost in translation. I'm going to give you two methods of dealing with this, but I need to first point out that, if you're doing this to improve your credit scores, you're wasting your time. Collection accounts have the same negative impact on your credit scores regardless of whether you've paid them off or not. Although paid collections may illustrate to some lenders that you're making an effort to be responsible, paid collections are just as bad for your actual scores as unpaid ones. 

You have two options here: 

Option #1:

Make a copy of the credit report that shows the collection account as unpaid. Use a permanent marker to black out any identifying information on the credit report (because you never know what information they do or don't have, and you don't want to give them the tools they need to pursue you in the future). You'll also need to make a copy of your proof of payment to the collection agency. I sincerely hope you requested a zero balance letter. If not, provide a copy of the collection agency's written settlement offer and evidence of your payment, such as a cancelled check. 

Write a letter to the collection agency pointing out that your Equifax credit report still shows the debt as being unpaid. Feel free to point out that federal law requires the collection agency to update your tradeline with each credit bureau. Demand that they immediately update your credit records and, if you're feeling squirrelly, threaten to sue.  Oh, and make sure you send your letter via certifed mail, return receipt requested. This forces the collection agency to sign for the letter and prevents them from claiming they never received your dispute. 

Option #2:

Make a copy of the credit report that shows the collection account as unpaid. Make copies of your proof of payment along with a copy of your settlement letter, just as before. This time, however, you're going to write a letter to Equifax disputing the debt. Point out that the collection agency is not abiding by federal law in reporting this account correctly. Refer to the documents you've enclosed and request that Equifax investigate the entry and update it accordingly. 

If both methods fail, you could call and attorney and file a lawsuit. You'd be well within your rights to do so, and it might even be worth it if better credit were the result of all that hassle. The only way these disputes could improve your credit rating would be if the credit bureaus decide to delete the collection agency's tradeline rather than merely correct it. 

Ok, on to the statute of limitations. 

I wish I knew what state you're in, but it shouldn't matter. The odds are on your side that your nine-year old debt is no longer within your state's statute of limitations and the collection agency can't sue you. States have very strict guidelines dictating what does and does not restart the clock on the statute of limitations. Merely having a phone conversation with a debt collector isn't enough to renew the SOL on this debt. Heck, you didn't even admit that you owed it. You're in no danger on that front. Also, the collection agency can't legally reinsert the debt into your credit report, but I'd keep an eye on it just the same if I were you.

Given that you've just settled a debt with a collection agency, you need to know how to protect yourself. I know you didn't ask me about this, but its important that you realize that the collection agency may just turn around and sell the unpaid part of your settlement balance to another collector--letting the nightmare begin anew. Take the settlement offer and your proof of payment and put them away somewhere safe. If you get a call from a new collector in the future, you can use these documents as proof that the debt is no longer viable.

Best of Luck,
Lee

Ask Lee: Debt Validation Time Limit for Collection Agencies

Hello,

I had 3 Collection agencies show up on my Credit Report showing collection accounts. I sent certified mail to them asking them to validate the debt & never heard back from them in the 30 days. On day 31 I sent another certified letter, with copies of my original letter as well as my return receipt from my original letter demanding they remove the trade lines in accordance with the FDCPA. I also sent copies of everything to all 3 credit bureaus explaining these companies did not respond in 30 days, provided the letters, certified receipts, etc, telling them it was their duty to remove these trade lines as the 3 companies didn't comply with the FDCPA. Is that all correct? I gave the collection agencies until 8/06/13 to remove the trade lines or I'd take legal action.Does this all sound like I've taken the correct steps? Thanks.

                                                                                                                              Kevin 

Kevin,

For starters, I need to clarify something: The 30 day restriction is on YOU, not the collection agency. You have 30 days after your initial contact with the collector to send in a validation request. The FDCPA does not set a timeline under which the collection agency must respond to you. Theoretically, the collection agency can wait a year to respond to your validation. The FDCPA does, however, prohibit the collector from conducting any further collection activity against you (excluding credit reporting) until it responds to your validation request. So after receiving your validation but prior to responding, the collection agency can not call you, send you dunning letters or fill up your e-mail inbox with angry payment demands. If they do, they are violating the FDCPA. They are not violating the FDCPA by not responding to your validation request within 30 days. You can review the section of the FDCPA that concerns validation here. 

The confusion over this issue often stems from the fact that, once you dispute the debt collector's tradeline with the credit bureaus, the collection agency has a time limit of 30 days to respond to the credit bureau's investigation or the credit bureaus will remove the tradeline. 

As far as the dispute goes, certified mail is good but make sure you always request a return receipt when mailing something to a collection agency. Many collection agencies, believe it or not, are ethical companies that operate within the law. Some, however, will just claim they never got your validation request. They can easily get away with this. If you have no proof you send the debt validation request, its your word against theirs. 

You have grounds to dispute an item with the credit bureaus if it isn't yours, you don't recognize it, etc. You don't have grounds to dispute a tradeline because the collector didn't provide you with a validation within 30 days because the collector isn't required to do so. I don't know how your dispute will go. It's possible that the credit bureaus will investigate the item anyway. I always recommend that consumers only dispute with the credit bureaus as a last resort. If the credit bureau "investigates" (and they don't conduct a genuine investigation. They basically do little more than ask the collection agency "Is this correct?") and sides with the collection agency, they can choose to ignore any further disputes you make--even if you have documentation that clearly illustrates that the collection account is an error. 

You have the right to take legal action against a collection agency for reporting incorrect information or violating the FDCPA in any way. Unfortunately, since failing to validate within a 30-day time limit isn't an FDCPA violation, you cannot sue under those grounds. If the accounts legitimately aren't yours, consider visiting with an attorney and mounting a lawsuit. In many cases--especially if the debt is small--a debt collector would much rather delete the tradeline than devote its time and resources to defending a lawsuit over a negligible amount. 

Best of luck,

Lee 

Credit Bureau Changed Removal Date For Collections After Dispute

Lee,

I have an account on all 3 cb. All 3 were set to be removed March 2014. I didn't remember this account so I disputed them. They all came back as verified but experian changed the removal date as November 2019. I have called them multiply times sent in the original credit report showing the original removal date but the won't help. They say there's nothing they can do because that's the information they are getting from the creditor. What can I do? Is it legal for experian not to help me even when I have the original report showing the dates were changed. This is the one thing stopping us from buying a house. Thank you

--Katrina 

The Fair Credit Reporting Act requires the credit bureaus to thoroughly investigate disputes before making a ruling. Unfortunately, this rarely occurs and sending documentation of an error doesn't seem to help many consumers. The credit bureaus mark disputes with a code and verify electronically. They don't sit and peruse your evidence.

In order to fight this properly, you'll need some sort of documentation of what the debt is. If you don't recognize it, contact the collection agency (by mail – NEVER by phone) and ask for the name and address of the original creditor. They have to provide you with this information. If you still don't remember the debt or can't put your hands on the paperwork, call the original creditor and try to get your hands on evidence of when the account fell into default. Make copies of your proof. 

Write a letter to the collection agency informing it that it has illegally re-aged your account and you have proof that the account is scheduled to fall off your report in March of 2014 – not November 2019. Use a marker to black out any personal information and send copies of your documentation and your previous credit report along with your letter. Demand that the collection agency adhere to federal law and report the correct information to the credit bureaus lest you file a lawsuit for violating the FCRA. Make a copy of the letter for your records and send the information by certified mail, return receipt requested. This way the collection agency can't claim the information was never received. 

Don't contact the credit bureaus during this time. Just wait and see what the collection agency will do. If they do nothing, its time to pull out the big guns. 

Hire an attorney to draft a letter to the collection agency threatening to sue for FCRA violations if these errors are not immediately corrected. A threat on an attorney's letterhead generally gets their attention a lot better than letters you send yourself. If they still do nothing, sue. Your documentation will go a long way in court, but I strongly doubt it would ever get that far. It's much easier for the collection agency to just correct its mistake than to fight a lawsuit. Of course, this is up to you. If you want to follow through with the lawsuit, the collection agency can't stop you. You can request that it pay your legal fees in addition to the standard FCRA damages--making this whole nightmare time-consuming but free. 

Having the name of the collection agency might help. Knowing which illegal/or unethical debt collection methods  the major collection agencies use sometimes helps me help others. Best of luck to you. 

--Lee

Deleting Collections From Credit Reports With the "One-Two Punch"

If you've hung around debt collection forums for any length of time, you've probably heard of the "one-two" punch. The "one-two" punch essentially consists of sending a validation letter to the collection agency and immediately following that validation up with a credit bureau dispute. This is supposed to result in the credit bureaus deleting collections from your credit report. Here's how it works:

How the One-Two Punch Deletes Collection Accounts

The Fair Debt Collection Practices Act notes that, once a debtor sends a debt validation request, the collection agency cannot legally validate the debt to any entity other than the consumer that requested the validation until after it has sent proper validation to the consumer. Thus, the collection agency cannot legally validate the debt to the credit bureaus until after it sends proper validation to the debtor.

The one-two punch rests heavily on time constraints. The hope here is that the collection agency won't be able to validate the debt to the credit bureaus within the 30 day time limit required by law. After the 30 days, the credit bureaus stop waiting for a response to the request and simply delete the collection tradeline from the debtor's credit report.

Yet another potential help is if the collection agency validates the debt to the credit bureaus without responding to the consumer's validation request. This gives the consumer the right to sue the collection agency. Upon notification that a lawsuit is pending, most collection agencies would rather delete the entry than duke it out in court.

Problems With This Deletion Tactic: Debt Validation Time Limit

There seems to be some serious misunderstanding regarding when you can send a debt validation letter to a collection agency. The FDCPA gives you 30 days to dispute the debt with the collector. Those 30 days start on the day you first became aware of the existence of the debt. Sure, you can claim you didn't receive the boatloads of letters the company sent to you asking for payment, but if the company can prove via recorded phone calls or evidence of certified mail that you were aware of the debt for more than 30 days prior to sending your validation request, it isn't legally bound to respond to that request.

So if you're going to try the one-two punch, do it within the first 30 days of being contacted by the collection agency, just to be safe.

Confusion Over "Proper" Debt Validation

Another aspect of the "one-two punch" hinges on the collection agency not providing the consumer with validation of the debt. Hunt around on the web for "proper" debt validation. What do you find? Probably a bunch of this:

"Proper validation constitutes the amount of the debt, the name of the account holder and his Social Security number, the name and address of the original creditor, proof that the collection agency has a contract with the original creditor giving it permisison to collect the debt..."

Blah, blah, blah. While we'd all love for this to be true, the FDCPA gives collection agencies a loophole by not stipulating what constitutes proper validation. Nothing. Nada. It's not there. Sure, there are FTC opinion statements, but those aren't fact or law. They're opinions. The truth is, the collection agency can send you a piece of paper with "IT'S YOURS DIRTBAG" scrawled across the front of it in red crayon and call it validation. While you may be able to nail them for harassment for that, they can still claim they considered it proper validation – leaving them free to legally validate your debt to the credit bureaus.

When the One-Two Punch Works, Watch Out for Reinsertion 

I've met people for whom the "one-two" punch has worked beautifully, so I'm not saying don't give it an honest effort. Be wary, however. If the collection agency isn't able to respond to the credit bureaus' validation request due to the fact that its actually adhering to federal law (many don't bother to follow the law) don't be surprised if the same collection account pops right back up on your credit report a couple of months after being deleted.

This is because the FDCPA give creditors the right to have previously deleted information reinserted if the creditor can prove to the credit bureaus that the information is correct and was deleted in error. Sadly, with collection agencies, this often happens as a result of the company sending the credit bureaus a certified letter stating something along the lines of, "That information you deleted was correct. Look, we have the guy's name and the amount he owes. It must be right. Reinsert this please."

And the demon reappears.

So, by all means, give the one-two punch a try. I'd love to know how it works out for you, but make sure to watch your credit report like a hawk for a few months afterward to ensure that the same old collection account doesn't pop up on your credit report after you thought you'd had it deleted.

Removing Collections That Aren't Yours From Your Credit Report

Removing Collection Accounts That Aren't Yours From Your Credit Report

Removing collections from your credit report that aren't yours is a little trickier than deleting old collection accounts. Many, many, many people claim that collection agency debts aren't theirs when, in fact, they are. Disputing a collection as "not mine" is the number one dispute the credit bureaus see, so don't expect to get very far there. Your goal is to convince the collection agency to delete the tradeline of its own volition.

The first thing you do is to write a letter to the company requesting the name and address of the original creditor for the account. You need that information before you begin.

Step One: Sending a Validation Request
This is nothing more than a formality. The collection agency cannot validate an account that isn't valid – but they will. Send a letter to the company, CRRR, requesting that it validate the account. Do not include any other information with your letter, such as "this account is not mine" etc. The collection agency will send you a printout containing the same basic information about the account that you see on your credit report. With any luck, some of that information is incorrect. You want this in writing. It will come in handy later.

Step Two: Calling the Collection Agency
Surprised? You should be. I'm normally the first birdie to sing a warning against ever calling a collection agency. In this case, however, it can really work to your benefit. So lets face the beast head-on, shall we?

When you call the collection agency, you'll have to go through an automated system to reach a collector. When the system asks you for personal information such as your Social Security number, just sit there. The system will not disconnect you. This isn't the same as calling the credit card company that really doesn't want to talk to you anyway and will disconnect you at the first opportunity. Collectors want to get you on the phone, and if the debt isn't yours, you don't want to give them any more information than they already have.

When you finally get a human being on the line, be polite. Explain your situation honestly, making sure to set yourself apart from the pack as much as possible. I recommend the following introduction:

"Hi, my name is ________. I noticed a tradeline on my credit report recently from your company requesting payment in the amount of _______. The account number for this account is _______. Would you like me to wait while you pull that up in your system?" 

This shows both professionalism and kindness. You're demonstrating those aspects first because you want them returned. It's a heck of a lot harder for a debt collector to start yelling at you about what a deadbeat you are when you start out the conversation on such a civil note. Let's continue..

"I know everyone calls and says this and its probably become so common that it makes you want to scream, (short chuckle) but this debt rightfully belongs to someone else. The name/Social Security number/address/etc. on the tradeline isn't mine. I am willing to do whatever is necessary to help straighten out the situation, both to help myself and to help your company pursue the correct debtor." 

You say, "I know everyone says this" to demonstrate that you do know they hear it all the time. By pointing out that you are aware that everybody claims this but in your case its true, you set yourself apart as believable. You chuckle to mark the unpleasant humor of the situation and to add an element of humanity – humanity that you hope will be returned – to the conversation. You also note how helping you also benefits the company to give the collector additional incentive to help you.

The first thing the collector will ask for is your Social Security number. Here's how you respond:

Collector: Can I get your Social Security number please? 
You: I mean you no disrespect and I want to get this situation resolved as much as you do, but try and understand my paranoia here about giving out information that can be used against me. After all, any information I give you can be used in an effort to collect the debt – even if those collection efforts are aimed at the wrong individual. 


Your goal is to get the collector to tell you who to call to resolve the situation. A special number of a top supervisor, perhaps. The name and address of the person in charge would also be helpful. Any information you can glean from the collector that most debtors don't have access to will help you resolve the situation and stay out of court. Try saying this:

"My goal in calling you today is to get this situation resolved as quickly as painlessly as possible for both of us. Who do I need to talk to within your company to accomplish that?" 

If the collector won't help you, call back and try again. Your odds of getting the same representative are low. Sooner or later, someone will tell you who to talk to. Do not let your voice betray any shred of frustration or anger. Unlike most customer service representatives, debt collectors aren't trained to be nice at all costs. If you bite, the debt collector will bite back and any chances you had of getting the information you want will go up in smoke.

Once you get an address or e-mail address of someone in a high-ranking position within the company (get the addresses of more than one, if possible. You want to send this letter to as many people as you can) send out a letter asking for help. I'm going to provide you with a sample you can tailor to your own situation. The italics in the letter are for your own clarity. Don't include those

Dear Mr./Mrs. ___________


My name is ____________. I am writing to you today with a situation you've probably encountered 1000 times, with only one or two cases out of that thousand being legitimate. I am one such legitimate case. The debt your company claims I owe isn't mine.


I discovered this debt on my credit report with an incorrect name/Social Security number/etc. I requested the name and address of the original creditor for the account and I have never held an account with _______ or I currently hold an account with _________ but it is up to date. I recently requested validation of the account and received a response containing incorrect information. This benefits me, since it proves that your company is pursuing the wrong individual for this debt. I am writing to you rather than simply moving forward with a credit bureau dispute and litigation because I am hoping we can resolve this outside of court.


I am willing to comply with any requests your company has that will prove my innocence in regards to this debt. Please understand, prior to receiving the validation response, I was hesitant to do so because I know that some collection agencies will simply replace the incorrect information with my information in an effort to collect the debt, not caring that they are pursuing the wrong person. I no longer have that fear because the validation I have in writing from your company contains the incorrect data you currently have on file and protects me in the event that data changes. It also serves as proof that the person you're looking for isn't me. Thus, exonerating me is not only beneficial to me, its also beneficial to your company since it frees you to pursue someone who will pay this debt.


Please contact me at (email address) so that we can discuss this matter further. 


Sincerely,
Your Name


I know how crazy this may sound to the die hard "Dispute-till-you-drop" camp, but I learned the hard way that collection agencies aren't all fire and brimstone. Higher-ups within the company don't depend on commission to pay their bills, and they're more likely to help you out of sheer human compassion. Given that few people anticipate this from collection agents, the trick works more than you'd think.

Once upon a time I had a client whose boyfriend had a collection debt on his credit report that was actually his nephew's debt. The two shared the same name and, being ignorant of the way the system normally works, he called the collection agency himself, explained the situation and asked for help. He got it. The collection agent who answered the phone directed him to another employee at the company who was willing to straighten out his file. In the end, my services weren't necessary and I was delighted by my client's boyfriend's success.

The point being, you might just get the help you're looking for if you ask for it.

If the Collection Agency is No Help Removing An Account That Isn't Yours

Just because the collection agency might help you, that doesn't mean its a certainty. Whether you're dealing with a genuine collection agency or a junk debt buyer makes a significant difference in whether or not you can get the negative report removed from your credit report with a few well-placed telephone calls and letters. Its much tougher to get a junk debt buyer to take you seriously because, if the account is old enough to have been sold to a junk debt buyer, then the debt collectors assume if the debt genuinely wasn't yours you would have already taken care of the problem. In addition, junk debt buyers have a lower successful collection rate that mainstream collectors because the debts they purchase are so much older. This makes them more gung-ho to collect from you, regardless of whether or not you can prove you legitimately don't owe the debt.

Time to play hardball.

Sending An Intent to Sue Letter to the Collection Agency

Remember when I mentioned that collection agencies don't want to go to court? Its normally not worth their time or the money it would cost to defend themselves from consumers – especially when they aren't certain just what evidence a consumer has against them until after the discovery period.

Step Three: Sending an Intent to Sue Letter to the Collection Agency
If that collection account on your credit report isn't yours, notify the collection agency of that fact via an intent-to-sue letter. Let the collection agency know, in no uncertain terms, that the entry is incorrect and thus in violation of the FCRA because you never owed the original debt. Don't provide the company with copies of any evidence you have against them. Don't provide anything. You don't want to inadvertently give collectors legal ammunition that can be manipulated and later used against you in court. Just write the letter and point out the following:

1. The account isn't yours and was placed on your credit file by mistake. 
2. You never had an account with the original creditor and you can prove it.
3. You can prove that the entry on your credit report contains information that indicates the debt is owed by someone other than you.
4. Reporting incorrect information to the credit bureaus is illegal.
5. You have the right to sue under the FCRA and you intend to do so unless the entry is immediately removed from your credit report. 

And then you wait. With any luck, one intent to sue letter will be enough to convince the collection agency that you mean business and it will delete its negative entry from your credit report.

If the Collection Agency Doesn't Fix Your Credit Report

If threatening to sue the collection agency isn't enough to set a fire under them and get the entry deleted from your credit report, its time to dispute the entry with the credit bureaus. Unfortunately, this is little more than a formality. The credit bureaus validation process is little more than contacting the collection agency with a, "Hey guys, is this correct? It is? Okay thanks." But you'll need to prove in court that the collector violated the FCRA knowingly. That means notifying the collector that the information is incorrect before you contest it with the credit bureaus. When the collection agency validates the information as correct, that proves that the company violated the FCRA by knowingly validating an incorrect entry.

And there's always a chance that the entry will get removed. You just never know. Its worth a shot. When the  credit bureaus validate the collection that isn't yours on your credit report, its time to take the fight to the courts and sue the collection agency. You could also try the "one-two punch" but I'll write more on that later. For the time being, I'm exhausted and this post is long enough as it is. There's so much information to include. *sigh* Ah well, such is the purpose of a blog. Bit by bit, we'll get there.

Removing Re-Aged Collection Accounts From Your Credit Report

Re-aged collections on your credit report can leave you getting turned down for loans and credit you actually qualify for simply because a collection agency is violating federal law. If you suspect that a collection agency is intentionally reporting the wrong dates to the credit bureaus in an effort to leave its black mark on your credit report for longer than the law allows, your first course of action should be to get a copy of your credit report from each credit bureau – Experian, Equifax and TransUnion.

Remember, federal law entitles you to one free credit report per year. If you order that free credit report from AnnualCreditReport.com, you won't have to deal with giving out your credit card number and then canceling any ridiculous subscriptions later on down the road. AnnualCreditReport.com is regulated by the FTC, and its the only place you should turn to for free credit reports.

Find Each Collection Account's Removal Date

Find the correct deletion date

Flip to the collection accounts section of each credit report. The error you're searching for is collection accounts that show up on your credit report for longer than the time limit allowed by the Fair Credit Reporting Act. The FCRA says that collection accounts must be deleted from your credit report 7 years from the date of first delinquency on the original account. The date of first delinquency is 180 days from the date of your very last payment to the original creditor.

Here's where things get tricky. Collection agencies go to great lengths to prevent you from knowing this date. It benefits them to have their negative entry hanging around on your credit file for as long as possible. Because of this, some collection agencies will go so far as to "re-age" their accounts – intentionally reporting incorrect dates to the credit bureaus to ensure that collections remain on your credit report for much longer than the law allows.

Thus, collection agencies will only report the date that the account was opened with their facility – not the date of first delinquency. It's up to you to match up the collection account with the original creditor's entry on your credit report. Most creditors charge off debts when they go 180 days with no payment. With few exceptions, the "charge-off" date listed on your credit report is the date of first delinquncy.

Once you've matched up the charge-off date with the right collection account, do the math for yourself to find out when the account is supposed to fall off your credit report. Don't depend on the credit bureau's "estimated removal date" to do the math for you. If your account has been illegally re-aged, this date will be incorrect. If you don't have long to wait before these accounts disappear from your credit report forever, its often easier and less stressful to just wait until they fall off on their own rather than trying to fight them off.

If No Original Creditor Matches the Collection Account on Your Credit Report...

Many of you will go through this little exercise and discover that you've got several collection accounts showing up on your credit report for which there is no original creditor to match them up with. This can occur for several reasons:

1. The original creditor was a credit card company. Credit card companies allow the charging of interest. Because the original contract includes this practice, any collection agency the credit card company sells the delinquent account to will also have this right. Thus, the charge-off amount won't match the collection amount because interest has continued to accrue since the account was charged off. 


2. For whatever reason, the original creditor's tradeline no longer appears on the same credit report that the collection agency's tradeline appears on. This happens sometimes. Don't panic. Just check your other two credit reports for the matching creditor. It may be there, even if the collection agency doesn't report that that particular credit bureau.


3. The account has been illegally re-aged. Under no circumstances should a collection account for a debt remain on your credit report after the original creditor's tradeline has aged off the report. The reporting period applies to both the original creditor and its collectors simultaneously. If no original creditor on any of your credit reports matches the collection account, there's a good chance the debt has been re-aged. 


4. The collection account isn't yours. Collection agencies frequently don't have the same wealth of information about you that original creditors do. Often all they have is a name and address. This can result in a collection agency adding their negative tradeline to the credit report of the person who most closely matches the information they have – in some cases, the wrong person. 

If no original creditor matches the collection agency's tradeline on your credit report, its time to find out who the original creditor is. The Fair Debt Collection Practices Act states that a collection agency must provide you with the name and address of the debt's original creditor upon request. So fire off a letter to the collection agency requesting exactly that. Don't forget to send your letter certified mail return receipt requested.

If the Collection Account is Too Old And Has Been Re-Aged

Collection accounts that show up on your credit report beyond the reporting period are the easiest to remove. Its always preferable to get the reporting company to remove the entry voluntarily, if possible, before filing a dispute with the credit bureaus. You want to fly under the radar with the credit bureaus. You don't want to make yourself noticeable in any way by filing frequent collection disputes – even if those disputes are legitimate.

Send a letter to the collection agency informing them that it has come to your attention that the company's tradeline appears on your credit report beyond the legal reporting period. Demand that the company immediately remove their tradeline to remain in compliance with federal law. If you're really feeling froggy, cite the statute – FCRA Section 605.

With any luck, the collection agency will simply fix your credit report to avoid any trouble. If the collection agency doesn't remove the entry after 30 days, send a second letter saying the same thing and giving the company 10 days to correct your credit report before you file suit against the collection agency for violating the FCRA and report the company to the Federal Trade Commission for illegally re-aging a collection account.

(You can report collection agencies for this here.)

If the collection agency still fails to comply, its only then that you should formally dispute the entry with the credit bureaus.

Disputing a Re-Aged Collection Account

Resist the temptation to file your dispute online, no matter how quick and accurate the credit bureau promises it will be. The online system is 100% computerized, and your goal is to reach a real person.

Write a letter (write it by hand, don't type it. You don't want it read and categorized by a computer – and yes, they can do that) to the credit bureau. Include the following information:

1. The fact that the debt in question has been re-aged.
2. The name of the original creditor, the date of first delinquency and the date the collection account should have been removed. If both the original creditor and the collection account remain on your credit report, you can dispute both simultaneously. If not, note that the credit bureau in question has already deleted the original creditor's tradeline in accordance with FCRA guidelines and that the collection account should have been removed at the same time. 
3. A copy of that credit bureau's file for you with the information in question highlighted. 
4. A request that the credit bureau immediately delete the information

With any luck, the person who gets your file will just delete the information immediately without trying to "verifiy" the entry with the collection agency like the computer system would do. Remember, the credit bureaus only have to verify information if the reporting company has supposedly made an error. In this case, you're claiming the error to be that of the credit bureaus – for not picking up on a re-aged debt. This gives the person reviewing your file more leeway.

Reviewers have an average of three to four minutes to spend on each file. The more you can back up your claim, the better off you are.


If the Credit Bureau Doesn't Delete the Entry

If the credit bureau doesn't delete the re-aged collection account from your credit report, its time to take the fight directly to the collection agency. Send the company a letter noting the following:

1. You recently requested the name and address of the original creditor from the collection agency and the date of first delinquency for that particular debt occurred more than 7 years ago. 
2. The credit bureaus deleted the original creditor's negative tradeline after 7 years and 180 days in compliance with the FCRA.  The collection account should have been removed at the same time.
3. You notified the credit bureaus of the discrepancy and the credit bureaus contacted the collection agency, which verified the dates were accurate when, in fact, they couldn't be if the original creditor for the account was accurate. 
4. The dates for the collection account were clearly re-aged – an illegal practice under the FCRA. 
5. The collection agency must immediately delete its tradeline from your credit report to remain in compliance with federal law. If it does not, you will report the collection agency to the Federal Trade Commission for re-aging, contact your attorney general and file a lawsuit against the company for violating federal credit reporting practices. 

Give the collection agency a time limit, say, 10 to 15 days and then either pull your credit reports again or sit back and wait for the email from your credit monitoring service letting you know that information on your credit report has changed. If the collection agency doesn't do anything, follow through with your threats. A well-placed call from your attorney general can result in quick deletion of a re-aged collection account from your credit report. If that doesn't do the trick, receiving a summons will almost always cause the offending tradeline to mysteriously vanish. After all, a collection agency is in the business of making money. What company wants to pay money to go to court to defend itself against a case it can't win?