Hi,
I terminated a lease back in 2004 because I lost my job. However, I needed to take another in a different city. I notified my apartment complex of this and they told me everything was in order. I had also asked them to contact me in case of any problems. The office even had my phone number and a forwarding address.
Earlier this year I pulled my credit report and noticed a collection for $967.00 and the original creditor was the apartment complex. I called the manager and she dug through their records to find that when I signed the lease they had offered a free month rent that was pro-rated over the term of my lease. I was supposed to pay this after I moved out.
Since I was never notified I was shocked to find out I had this collection. However, I paid the amount in full the same week directly to the apartment complex and have been messing with the collection agency for the past 3 months trying to get them to report it correctly on my credit report. What can I do?
Is the original creditor required to notify me of a debt before turning it over to a collection agency?
Hi Robb,
Is the original creditor required to notify me of a debt before turning it over to a collection agency?
No, the original creditor is not required to notify you before handling away the collection powers to a collection agency. However, they could have noticed you while you moved out of the apartment.
As for the reporting the collection agency won't update the account as "Paid" because you have made the payments to the original creditor.
Thanks,
Aaron
Aaron, you are always so knowledgable on these matters. I was wondering if the original creditor acccepted the money the why can they not call the collection off from the collection agency? Also if the original creditor shows the money has been paid does this help the person out any? Only two people can show on your credit report, the original creditor and one collection agency, so if the OC shows paid does this not look better for the person?
debt
Hi fireyone,
Yes, in some way this does look better because it will atleast show that you have paid off the debt. However, unfortunately the collections cannot be removed. The collection can perhaps be called off if collection agency is just a part of the creditor.
Thanks,
Aaron