Screwed by renting company / collection agency.

[Maxim S]

I thought I'd ask about this here, since being a Porsche forum it'd stand to reason we've got some people around who know law!

Anyway... my girlfriend and I moved out of our old apartment complex in July. We paid all our bills when we moved out. About two or three months ago, we got a "final warning" letter from a collection agency saying that a bill hadn't been paid and that they'd report us if we didn't take care of it. We contacted the old rental company, spent several days corresponding with them while figuring out exactly what they wanted and what it was for, and, even though the charge was somewhat dubious, we paid them the couple hundred bucks they wanted just to get them to leave us alone and not damage our credit. We have ample proof that we paid this charge, and emails from their rep saying they contacted the collection agency and dropped the charge.

Well, today each of us got a certified letter saying that we hadn't paid them and that we've been reported to all the credit agencies. Both of us have very solid credit and this could be catastrophic to it.

I'm kind of at a loss for how to deal with this. I know procedure is to contact the company, get a letter admitting error, and then send it to all the credit agencies with a request to reverse the charge. I also know that it's totally possible that that won't work, and that it can take ages to get anything reversed. I also hear that your credit is never completely clear again. We're moving this month, and will be looking for an apartment soon, and this could make it impossible for us to rent anywhere that isn't meth lab-adjacent.

Any advice?

[ben parrish]

Could be an honest mistake; lack of good communication between departments. Who did you pay the money to?
Compile all correspondence between you and the rental company...call and speak to a supervisor..submit all copies and ask them to take care of this matter ASAP and provide you with a copy of the transcript between them and the credit reporting agencies.
Give them a week...check in on it...if not resolved, a quick call to an attorney may be in order.

[Gogar]

Have you looked at your credit reports recently to see if they actually have 'reported' it? Maybe it's BS all the way around.

[Neilk]

You can view the credit reports from all 3 agencies at no charge by going to annualcreditreport.com. It's 100% legitimate, just don't fall for the their upsells to view your credit score.

[Steve Carlton]

As Neilk said, pull your three bureaus at annualcreditreport.com first. Even if it's not there, I'd be proactive in preventing from getting there. You should call the collection agency and speak with a manager and have him send you a letter stating that the collection is cancelled. If the collection does show, you need a deletion letter to provide to the bureaus. This will correct the problem and your credit will be completely clear again of this item.

[Maxim S]

I was actually going to wait a few days before checking my credit since I wasn't sure if it would've hit yet. We're already on top of getting in touch with the company and agency and all of that, but I don't know if we'll actually be able to get anywhere with them considering how many times they've already jerked us around on things.

[Rich76_911s]

I'm no expert on this, but I think the problem is you paid the original owner and not the collections agency.

The way I understand it collection agency's pay cents on the dollar for the debt that is owed, then the collection agency tries to collect whatever they can get.

So in other words if you owed $200, the collection agency might have paid your old landlord $40 to take that debt. Now it is the collections agency's problem, NOT your landlords. Had you paid the collections agency, you would have no problems.

I don't know how you solve this problem, but at least I think that should help explain what the problem is for you.

[Steve Carlton]

I agree on that, except the original creditor (landlord) is responsible to call off the collection agency. On top of that, the original creditor can damage the credit report as well if they want to, being that they weren't paid if you paid the collection agency instead.

You might want to pull your three bureaus now, in case some or all of them are still clean. If you're looking to rent again, it's very possible your next landlord will accept a bureau provided by you.

[RWebb]

contact the Attorney General's Office of Consumer Protection in your state & provide them with copies of all those letters you referenced + the cancelled check

wait a month or two before getting the credit reports to make sure they have been updated

Debt collection is a necessary function but most of them are real low-lifes - do everything in writing - never by telephone (unless you record the call, which is legal in some states)

[John Rogers]

There have been a couple of these "fraudulent recovery" cases in the San Diego area and our man "Turko" on KUSI went after one company and it was eventually charged and prosecuted and put out of business. Sounds to me like the "handicap access" lawsuit threat or the "renters scam" where renters are in a foreclosed home and others. I agree to go after them for recovery.

[RANDY P]

If the landlord has accepted your payment in full the collection agency has no right to collect your debt. It's settled.

That's not to say they aren't going to try hoping you don't realize that or have lost proof of payment. I'd ask for proof of the debt they say you owe (even tho you know what it is)

once you receive that send back proof it's paid in full. They'd be foolish to try to go further. If they persist, report the landlord to the local housing authority claiming renter abuse.

Or, a letter from an attorney should fix that if you want to spend a few dollars.

rjp

[RANDY P]

PS keep ALL your correspondence in writing or hopefully email. No agreements over the phone.

rjp