Best next step in my dispute process

[heartsflowers2002]

Hello,

My boyfriend disputed a collection account from experian about two weeks ago, using online process.

About this account:

It is from 2008. Credit Collect Agency claimed he owed somewhere around $1000 or more. This amount included merchandise, and past due rental fees.

He was told by collection agency, if he returned merchandise, this would be deducted from amount (until that point, the original creditor had refused the merchandise), and he should fax in the receipt for returning it. He also made further arrangements for them to electronically withdraw 2 payments from his bank account that would pay the remaining balance in full (all this, negotiated in May 2008).

He returned the merchandise, faxed in the receipt for it; they electronically withdrew his funds for the money. We did not hear from creditor for a few months. All was settled.

Well...
Apparently they never received the receipt/fax proving he turned in the merchandise, or they lost it. Unfortunately, my boyfriend did too. He has information/proof that the funds were removed, but not the returned merchandise receipt. And his credit report reflects a $989 balance (a couple of weeks ago it was $981).

He disputed this online a couple of weeks ago with Experian. Also, he called the collection agency went to the original creditor about a month ago.

He told the collection agent he paid the money and the collection agent said, well, he still needed to pay for the merchandise. My boyfriend said it had been returned and the receipt faxed. The collection agent had no record of this, and basically said it was his problem.

My boyfriend then went to the original creditor (who was moving to new location the next day--I am hoping this doesn't screw up their records that are our proof). The orignal creditor looked up the serial number and said yes, it was returned, it was in the refurbishing department (it is a musical instrument, trumpet, for my son's band class).

He said he would call and let someone higher up know this. He also said, they didn't even have any trumpets that expensive. (At this point I don't even know if this amount they are reporting is for the trumpet alone, or if it includes the fees we paid.)

My boyfriend disputed it (and a separate account) with Experian a couple of weeks ago and as of today, I went to check, and it said this debt had been verified and updated as of Feb 2009 (they did not send my boyfriend a notice about this). On impulse, I redisputed it claiming the merchandise was returned as verifiable by serial number and all money was paid as verifiable by bank statements and I would file a complaint if this wasn't resovled.

BUT, this wasn't the correct thing to do. So, I need to know if the steps I list next, would be the proper steps? (also, my boyfriend is going to go tomorrow to the original creditor and hopefully the information that verifies the merchandise is there, is still in the system--they are closed today)


First, (Buy a printer that is compatible with my dinosaur computer so I can type up a letter <--CRA cost: $0. My cost: $30 Peace of Mind if this settles well: priceless. lol

1. Gather information I have about account --bank statements proving money was withdrawn.

And, can I insist, when we physcially go to the original creditor (a music store) that the original creditor provide me with some sort of documentation that they DO have the merchandise, if their records still show that they do? They can't give us a receipt since we are not, at that moment, turning anything in?

2. Draft letters. To Who?

I think:

a. Collection Agency (debt validation and dispute letter)
b. Original Creditor (debt validation and dispute letter?)
c. Credit Reporting Agency (? <--this one, maybe not, since all they do is report the stuff? Still, I would sent them a dispute letter yes? Claiming they are reporting inaccurate and incomplete information?)

(Also, keep in mind this account has already been disputed once through the online process and is being disputed again through online process since I was impulsive)


3. What the letters to Original Creditor and Collection Agency should include:

a. my gathered information

b. a recount of all that has occurred (should I say, hey YOU guys lost my receipt fax in May? Hopefully at this point I will have proof, more documentation that the merchandise is in the original creditor's hands)

c. Do I threaten to file any complaints? Do I verbalize that they have thirty days to correct this? (It is very frustrating to have to jump through these hoops and prove our own case. Meanwhile, they have all this power over our (BF's) credit file, which all lenders see. I did not appreciate not being informed by Experian that this dispute was updated, because any potential creditor would see it right now, as valid debt, and it is not.)

d. Do I ask them, to give me itemized bill for the charges, even if I already know I am disputing them?

4. Send all copies of letters certified.

At this point, I wait 30 days? And at this point, the credit reporting agency should not be reporting this account in this way while it is being reinvestigated, correct?

Next, if all goes wrong, and they still try to claim this is a valid debt, what steps should I take? What options/rights do I have, when I know this is not a valid debt. If this should be reported at all, it should be a fairly new collection of $0. Who can I file a complaint for the Collection Agency with, The Federal Trade Commission?


Thanks In Advance for any help to make me understand, and sorry to make a mess of the process here

christine

[Trish]

Ok.......wow......that was a long post. My ADD was kickin in and it was hard for me to read it all. LOL

What you need to do it get proof in writing (or by receipt) that the merchandise was returned. Then you make sure and send the CA a copy.....send it CMRRR so that you have proof they rec'd it.

I have a feeling the CA is just trying to squeeze more money out of you.
Then they would have to report the acct as paid or you can start filing complaints.

The problem is.........is that a paid collection account is no better. You need to try and get it removed.
What I would do is keep a strong paper trail. Depending on how things go, the CA may just give you the leverage to get this deleted.

So, for now........just get the proof from the OC and send a copy to the CA. You can fax it again if you wish but then still send them a copy CMRRR. That's the only proof that would hold up in court.

Hope that helps.

[heartsflowers2002]

LOL!!! it took me a second to figure out ADD was an acronym crack for... ADD lmao. I was like, D... debt, A...ummm lolllll.


Anyway, Thank You Trish for all your help. I hope that you know how much it means to someone here, each time you take a moment from your time to read their post. And that, if you do write back, how all your help means soo very much to someone with nowhere else to turn.



So BIG THANKS to you (and everyone here who offers some of what they know).

[Trish]

Ha ha.......that's funny. (yeah, I didn't think chane would let me put Attention Deficit Disorder in the acronym thread - sorry bout that)
And you're welcome. I'm happy to be able to help.

[heartsflowers2002]

woohoo! Got a letter from this collection agency saying the account is closed and the credit bureaus have been instructed to remove the reporting. Feels good.

Thanks again.

[Trish]

Yay!! That's great news!