Page 33 - Book8E

Often, a single collection action will result in multiple negative entries on your credit report. For example, a delinquent account may be reported under the name of the original creditor and again under the section of the credit report for “collections.” If the matter resulted in a court judgment, it may again appear on your credit report under the public records section.
If you find the same account is reported in multiple areas of your credit report, the Federal Trade Commission recommends that you dispute this with the credit bureaus and file a complaint with the FTC. Dual reporting of a single account can unfairly lower your credit score.
When you send the collector proof that the debt is not yours or has been satisfied, ask for written confirmation that the collector is not holding you accountable for the debt. Some accounts, even though properly disputed with one collector, may be sold to another. This can happen years after you have successfully disputed an account.
This makes it all the more important to create a record of your experi- ence with the prior collector. Keep your file indefinitely, especially if it contains correspondence that states you are not responsible. State law may keep a collector from suing you after a given period of time. However, there is no statute of limitations on collection efforts. What you thought was a closed file may come back to haunt you later.
How long does the collection agency have to conduct its investiga- tion? There is no set time, but, again, the collection agency cannot resume collection action unless it confirms the debt.
May a debt collector report negative information on my credit report? Yes. However, collection agencies are not consistent when it comes to reporting. Some collectors report only larger collection
Fair Debt Collection Practices Act 23