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So I just found out some ******* lawyer whom I paid thousands of dollars to claims I owe him more money(I don't). The case was sent to collections last summer, I immediately spoke to them, was told it would not be reported if I disputed. I sent a letter, never heard back.
Then...this past week I see that it is on my credit report!
I called the collections agency, they said they did not report it, and that their records show the account is in dispute and that it should not show up on my credit record, and if it does it should then state it is disputed.
My question is what happens in these situations when a business claims a person owes money, sends it to collections, but the person disputes it with the collections agency. Questions:
1) Does this show on your credit report? Is it supposed to?
2) If it does appear on the record, if it says dispute for account status would that impact my rating?
3) Lastly, the collections agency said they have sent this to management to get them to update the account status with the credit bureaus as disputed and it can take 30 days.
-Is this common? What do I need to do, if anything, to get this straightened out or does it sound under control?
1) Does this show on your credit report? Is it supposed to?
Collection agencies are regulated by the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. I don't recall anything in them that says that an unpaid debt can't be on your credit report while it's in dispute. What I do recall is that the collection agency is limited in the action it can take.
2) If it does appear on the record, if it says dispute for account status would that impact my rating?
Your rating was already impacted when the negative item appeared on your credit report. You should be able to determine the difference between what your credit score was before and since. Whatever the score was after the item appeared isn't going to change just because you say you don't owe it or you dispute it. You can check your score and your credit report now and compare it to what it becomes after the dispute is noted.
Quote:
3) Lastly, the collections agency said they have sent this to management to get them to update the account status with the credit bureaus as disputed and it can take 30 days.
-Is this common? What do I need to do, if anything, to get this straightened out or does it sound under control?
What you need to do is get back with the lawyer who says you owe him money and get it settled one way or another. Relying on any other method isn't going to fix your credit rating.
Don't mean to hijack the point of this post, but wouldn't the lawyer (in this case) need the client's Social Security Number in order for the "debt" (disputed or not) to be reported to the credit agencies?
Don't mean to hijack the point of this post, but wouldn't the lawyer (in this case) need the client's Social Security Number in order for the "debt" (disputed or not) to be reported to the credit agencies?
Probably.
But I imagine that the lawyer got all the necessary information when the OP hired him.
When I had my rentals I made sure I got DOB, SSN, Driver License number, employer information for potential wage garnishment, and kept copies of rent checks so I had the bank's information for potential bank levy.
Some of my family laugh at me for keeping so many bills and financial records.
I insist on a $0 final statement from service providers (roofers, electricians, plumbers, landscapers) to my house after the bill has been paid. I keep these, with a copy of the payment made (check or credit card statement). This proves I paid in full and there is no residual balance. I do not want a mechanics lien to suddenly appear on my title.
If the service provider will not give me a $0 balance due statement on their letterhead, I send them a letter saying that I do not owe them any money for services provided and if they do not agree, they should notify me in writing within thirty days.
This isn't bullet proof but provides a safety net for most of the problems.
So I spoke with the lawyer, the office is going to contact the collection agency to remove any credit report and collection effort.
Does this mean I should be in the clear very soon with no record?
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