Question

Last summer I made an arrangement with a debt collector over the phone. This arrangement was for a XXXX-XXXXX account that was in charge off status for the past year or so. The debt collector said that if I paid $867, the account status would be changed on my credit report from ‘charge off’ to ‘paid in full’. Instead after I paid him, my credit report was updated to ‘paid charge off, $1400 written off’. My credit score only went up 4 points. I think you could understand how horrible this felt because I thought I was doing the right thing and I got screwed. My question is, now that I read some of your blog, is there anything I can do?

Response

Unfortunately this happens a lot and there is very little you can do. The problem is that the deal was made over the phone -you can’t prove the scumbag collector made that offer. Trying to communicate with the collection agency now will be useless because they have already been paid. In this case, you can try to dispute the record with the credit reporting agencies and see what comes from it -you never know. Read my post regarding disputing an entry on your credit report. Nonetheless, I recommend that you ‘write it off’ as well and begin rebuilding your credit. Start out by getting a credit card. Check out my recommendations.