By Melissa Douros
9 September 2009

Dear Melissa,

While applying for a refinance loan for my house our credit report showed owing a bill for $107.00 that we were not aware of. So I contacted the collection agency to verify what was owed with the intention of paying it if I had overlooked it.  The collection agency said they did not have the account. I gave them my social security number and exactly what the credit report showed still nothing. The advised me to contact the company that states I owed them the money. I contacted them same thing. I realize at this point I must start the dispute process with the credit bureau however I need this cleared up to close on my house. The mortgage lender wants a letter stating that this account is not in collections. Will a collection agency do that?

Tina R.

Dear Tina,

If the collection agency is reporting an account owed on your credit report, yet they are not showing that you have an account in collections, then yes, they must both send you a letter stating that you do not have an account in collections and remove the account immediately. 

I would both call the agency and send them a letter telling them that they are in violation of the Fair Credit Reporting Act, and that you expect the item to be removed immediately.  State that if they do not, you will hire an attorney in response to this violation.

Once you have the letter, not only should this be sufficient for your mortgage company, but do not wait for the collection agency to remove the item from your credit report.  Send copies of the letter to all three credit bureaus as well.

Do YOU have a question for Melissa? Email her at melissa@dovcocs.

Melissa Douros Dovco Collection Solutions, Inc.

As the owner of Dovco Collection Solutions, Inc., Melissa Douros uses her eight years of being a collections specialists to offer advice and answer questions pertaining to debt collection. With running her own successful collection agency, she seeks to keep debt collectors accountable for their actions and in line with the law.