collection agency screwed me over

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jcwill
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Joined: Thu Apr 05, 2007 6:51 am
Location: Austin, TX
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collection agency screwed me over

Postby jcwill » Thu Apr 19, 2007 2:08 pm

I think I seriously got screwed over. Here is what happened:

two years ago I signed up for a crappy VOIP service. I used it for a couple of days and decided i did not need it anymore. I ended up paying for their service for a couple of months until my credit card expired. However, they kept charging me for another year. I eventually got a call from the VOIP company to pay but I refused to pay. After a year, a collection agency sent me a letter that I had to pay for the collection in the next 30 days or they will report me. I have outstanding credit and I paid right away to prevent my credit score from dropping.

Today, I got my credit report and the collection agency contacted the credit agencys even though I paid the balance within 30 days. My score dropped from 720 to 620!! I want to apply for a mortgage but with this score I will get crap.

This is what shows up in my credit report. It looks like that they filed this 7 months ago. I have NEVER received anything from these guys until 4 weeks ago. As soon as I heard that they will send it to a collection agency I paid it.

Your most recent collection account or negative public record is 7 months old.
Reference Number Institution Date Filed or First Reported Comment Date Last Reported
725**** SKO BREN AM 09/2006 Collection account. 03/2007



Is this legal what they are doing? Btw this is their url: http://www.skobrenner.com. If I have to take them to small claims court I will take them.

KlfJoat
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Joined: Mon Apr 16, 2007 7:41 am
Location: Baton Rouge, LA
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Postby KlfJoat » Thu Apr 19, 2007 2:38 pm

Check out the following links. Basically, you have the right to challenge any incorrect information on your credit report.

http://en.wikipedia.org/wiki/Fair_Credit_Reporting_Act
http://wiki.answers.com/Q/How_does_the_ ... e_consumer

jcwill
Posts: 7
Joined: Thu Apr 05, 2007 6:51 am
Location: Austin, TX
Contact:

Postby jcwill » Fri Apr 20, 2007 8:17 am

thanks for the links. I did use the 1800 number of the FTC to get some advice. Their customer service is actually pretty good.

I ended up talking to the collection agency and they said that they never received payment from me. However, I was able to fax him proof of payment dated 4 weeks ago. He said that they did an error on their end and that they will get on it to fix it.

I believe it when I see it though. We shall see.

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tinyhands
Posts: 335
Joined: Thu Apr 05, 2007 6:30 am
Location: Houston, TX
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Postby tinyhands » Fri Apr 20, 2007 11:37 am

It's worth a few minutes to go ahead and dispute it through the credit agency as well. I haven't seen the other two, but with Experian it's as easy as a couple of mouseclicks. I suspect it's in your best interest to show that you disputed it, not just that they "fixed" it, which may or may not repair your credit score.

samerwriter
Posts: 34
Joined: Wed Apr 04, 2007 9:19 pm
Location: Portland, OR
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Postby samerwriter » Fri Apr 20, 2007 12:55 pm

There's probably a useful lesson here as well, though.

It's important to explicitly cancel service, rather than hoping that they'll just go away when your credit card expires.


Sam


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