Collection Agency told me to dispute to remove account

[abny10020]

I have an account that was outstanding waiting for hospital approval to reduce the bill. It's however sent to collection. Once reviewed, I paid collection agency the amount approved but they won't remove the negative account it on their own. I called them twice and I spoke to this agency representative and the woman told me that I have contacted them before in Sept/2010 (payment made in Apr/2010) and I should dispute it to the agencies and the CA will send the collection agency a letter to verify it and THEN the collection agency will remove the negative account. She said they can't initiate it and I should start the process by disputing it myself. Is that correct?

I TAPED the conversation after knowing the agency is in Indiana and it is legal to do so! What is the right step? Shall I believe her and send a dispute letter to three credit bureau agencies? Your advice will be much appreciated. Thanks

[Lian]

They are feeding you a line of poop.

Deletion or non-deletion of accurate information from your CR is not, in and of itself, a disputable matter. They are asking you to dispute the accuracy of their reporting when accuracy is not even the issue.

The CRAs have a clear policy, as stated over and over in their credit reporting manual, that reporters of information are NOT to delete prior, accurate reporting of that information based on subsequent payment of the associated debt. So the debt collector is asking you to "dispute" accurate reporting, and apparently to raise the issue with the CRA of deletion of accurate information. That is tantamount to asking the CRA to intervene on a matter that violates their own reporting guidelines. Kinda silly, in my opinion.

If you choose to dispute, I would NOT dispute through a CRA. Keep it just between you and the debt collector, and send them a direct dispute under FCRA 623(a)(8). The CRA is not involved in that process, and it would satisfy the silly "dispute" requirement they have stipulated by forcing its resolution directly upon them, not the CRA. They can then, if it makes them feel better, just delete due to their "inability" to provide verification.

No one said that debt collector practices make sense! Play their game on your terms...