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I had an agreement with a collection agency to remove a debt that wasn't mine. I paid the debt regardless because we were going to buy a house. The debt was $200. I have a letter from the collection agency showing the debt was paid in full, and that they would delete the file immediately. A month later I called back because it was still on my credit report. They put me on the phone with the owner, and he said he would delete it. Another month passed. I called, and he said he was deleting it WHILE we were on the phone. I felt confident that he was being truthful, after all I had a signed letter from him, a receipt of payment, and his verbal guarantee. We went ahead and got the home loan. We applied for 3 credit cards and an auto loan. All this time we thought we had perfect credit. Now, one year later, I pull my credit report and see that the case is STILL on file with TransUnion. This could have greatly affected my interest rates. Especially the mortgage. Can I sue them?
State/Country relating to Question: Washington Already Tried: I have called this company repeatedly. They ignore my calls. They ignore the fact that I have a signed contract with them. This is my first attempt at legal recourse.
Yes, you can sue the collection agency for unfair and deceptive acts or practices. However, without suffering any actual damages, you may not be able to recover any monetary damages from them since you were able to get your home loan and your three applications for credit cards and auto loan were approved.
Another thing you need to do is to dispute the information with TransUnion. TransUnion is obligated by Fair Credit Reporting Act ("FCRA") to investigate the information by sending it to the collection agency for verification. If the collection agency does not respond to the investigation, then TransUnion is required by FCRA to delete this information from your credit file or report it as paid in full. This investigation may last up to 45 days.
But wait. How do you figure I didn't suffer any financial losses? Perhaps the higher credit score shaved a percentage point off my home loan. Or decreased the APR on my credit card from 21% to 14%. Interest rates are greatly affected by credit scores. One % point on a 30 year mortgage can be very significant. We are talking tens of thousands of dollars over the life of the loan and approximately $200 every month. As someone on unemployment right now after losing my job, it could mean keeping or losing our home.
I disputed this debt twice with TransUnion since I received the signed letter from the collection agency, which means they have not only neglected to remove it, they have verified it twice. If I were to sue them, which type of attorney would I want to hire to represent myself? I think a good attorney could make a case for significant losses as several loans/revolving accounts (and one denial) have been affected by their negligence.
Then you have just made a very strong argument for damages, which you must prove in any lawsuit in order to be awarded monetary damages. I was merely pointing out the worst case scenario and you have rebutted it quite nicely.
You need to get a consumer attorney to sue both the Collector and TransUnion. Click here to find consumer Attorney:
http://www.naca.net/
http://www.lawyers.com/
http://www.attorneypages.com/
Attorney-at-Law
Licensed in Massachusetts and New York
Awww, telling me what I want to hear so I'll accept and move on.. I acknowledge it, and I'm just enough of a sucker to do it. Of course, you knew that because I already put the $18 bucks into escrow ;) Thank you for your time and your advice.