Kim M asked in Business & FinanceCredit · 1 decade ago

Can collection agency report you to credit bureau AFTER payment made?

I received notice from NCO on Columbia gas bill for 588.00. Didn't realize we had one last bill after disconnecting service. Called them right away to take care of. Was not reported on my credit report (I checked), NCO confirmed they had not reported it. I was very relieved as we are in the process of getting a mortgage. Paid the bill on August 8th, was informed by bank the my score took a huge nosedive, more than 80 points because on August 19th, NCO reported this account. More than two weeks after payment made. HELP! My mortgage is on the line.

PS. I called NCO, what a waste of time. Got call center in Carribean.

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  • 1 decade ago
    Favorite Answer

    You won't get anywhere with NCO.

    Copy all of your information and dispute the account. Fax all of the information to the credit bureaus as proof they reported the collection AFTER it was paid.

    They can't do that and it's a violation of their contract with the credit bureaus.

    What NCO did is a new tactic that credit bureaus are not going to "play". They get an account in collection and don't report it to the bureaus...that way they can use that as leverage to collect from the customer. Then as soon as it's paid, they turn around and report it to the bureaus for the first time as a paid collection.

    See the problem? That is why it's a violation of the contract. The credit bureaus require ALL account information to be reported to the bureaus. That means that as soon as NCO got the collection, it was supposed to have been reported as an unpaid collection, and then they were supposed to update it when they got payment. They can't have it both ways.

    If that doesn't work, file a complaint with the consumer protection department of your state..they actually regulate the credit bureaus and have direct authority over them, as they license them.

    PS: An underwriter should be able to accept documentation that the collection has been paid.

  • Anonymous
    1 decade ago

    Not quite sure what Mary is talking about....haven't heard this trick yet.

    But I do know there is NO REQUIREMENT that a collection agent report anything.....so maybe she can elaborate a bit.

    Anyway....what you can do depends on how this was reported to your credit report.

    Did the report it as "paid" with no balance? Or did it show unpaid, and have a balance on it?

    When you talked to NCO to make your payment arrangements, did you get it in writing? Folks.....I can't say this enough! NEVER BELIEVE A COLLECTION AGENT! Always get your agreement in writing.

    Do you have proof you paid this on the 8th? Canceled check or something? A statement from NCO?

    Here's my thinking....if you had this debt paid PRIOR to the 19th, but they reported it as unpaid.....then you have a lawsuit against them. And if that inaccurate information costs you by losing your mortgage, or in higher interest payments, you also have grounds to sue for damages.

    If the report they files does say it's paid with no balance.....then you are not going to have much luck getting it removed. It's an accurate item.

    Lesson to learn #2...NEVER pay a debt unless you have an agreement IN WRITING that they will delete negative information from your credit report.

    If your mortgage loan goes sour, consult a lawyer who specializes in FDCA lawsuits. There are a growing number who accept these on a contingency basis, and I think you would have a good case.

  • Anonymous
    5 years ago

    In the future, don't give a collection agency direct access to your bank account. It seldom comes out well. Send the collection agency a letter requesting they remove the item from your credit file as they failed to take the payment. Be nice. You are asking them for a favor. Techinically the collection agency can report the item as soon as they get it. There is no grace period. It really makes no sense that the hospital refused your cash payment over a pending payment.

  • 1 decade ago

    You need to notify the credit bureau (via mail, enclose proof of payment), and let them know that you have paid this past due bill. This will show that you paid the bill, but your credit report will still reflect a late payment. This will be better than NO payment at all and should help raise your score. I wish you the best of luck with you mortgage!

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  • 1 decade ago

    Yes, they certainly can report it. If it was an unpaid bill or went to collections that is their right.

    However, since you have applied for credit (your mortgage) you are entitled to getting copies of your credit reports from Equifax, Experian and TransUnion. You can then write to them and let them know this was paid and you would like it to be corrected on the report. They will contact NCO and usually it gets corrected. They will each send you copies of the corrected credit report.

    If you have a written notice stating it would not effect your credit you should send a copy along, which would help.

    Good Luck!!

  • JB
    Lv 6
    1 decade ago

    Dispute the charge with each of the reporting agencies.

    Call NCO five times a day until you get someone who can actually help you. Move up the line from the call center to the supervisor to the the president of the company. Threaten to sue their butts unless they take care of it immediately.

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