Collections, but Comcast didn't let me pay.

[FixTheProblems]

Hello good folks,

 

Background: last October, Comcast locked my account because *a stranger* (mistakenly) paid for it with a credit card, and later disputed the charge with their credit card company and did a chargeback. Comcast made it so I couldn't use any type of credit/debit cards to pay. It took some give months to even expose this issue, as agents didn't know why my account was locked. I cancelled my account but they still wouldn't let me pay. Eventually, they sent it to collections, which very promptly hit my credit history with a "Collections" derogratory record.

 

Unfortunate timing, because I'm in the market right now for a mortgage. Without this note, my credit history is close to perfect, with FICO8 of 835+, and VantageScore3 of 810+.  With this, the scores drop to about 710 and 760 respectively. Meaning, either mortgage denial or higher interest rate, leading to huge sums wasted.

 

My questions are:

1) What is the best way to get this rectified and get this record off my history?  
            - Is it possible to do a "pay for delete"?  
            - Should I be talking to Comcast or to the collections agency?  
            - Is there something I need to to in the interim, like disputing the record?  
            - What would be the fastest way to deal with this? Ideally, I want to apply for a mortgage in the next week if possible. If not possible, in the next 3-8 weeks.  

 

2) Are there particular mortgage lenders that use a more favorable scoring so this one single negative record doesn't hurt my mortgage rate?  
            - My understanding is, FICO8 has this 120+ point drop for the first negative record, while other scores (like VantageScore3) doesn't drop so dramatically. Is this correct?

 

Thank you very much in advance.

Edited April 23, 2023 by FixTheProblems
details

[MarvBear]

Welcome to CreditBoards. 

[shifter]

I recommend to follow my sticky thread and pay Comcast directly and then send the letter to the CA to get them to remove the account. This assumes that it is a CA and hasn't been sold, but it seems fairly young. Who is the company reporting? 

 

Mortgages use FICO 2/3/5, not FICO 8 or Vantage.

[hdporter]

10 hours ago, FixTheProblems said:

Background: last October, Comcast locked my account because *a stranger* (mistakenly) paid for it with a credit card, and later disputed the charge with their credit card company and did a chargeback. Comcast made it so I couldn't use any type of credit/debit cards to pay.

 

I largely concur with @shifter.  Call and get an appropriate address to send a check as payment to Comcast and mail it asap.  Upon clearance of the check, I then suggest contacting Comcast, explain the circumstances and request that they retract the account from collections, and that they advise the CA to remove any credit agency reporting.  If Comcast has reported adverse information as well, request removal.

 

A cursory google search for an individual who might be an appropriate contact by which to escalate this for corrective attention:

 

https://corporate.comcast.com/news-information/leadership-overview/tom-karinshak

 

https://support.xfinity.com/svp-contact-form

 

 

[FixTheProblems]

Thanks for the welcome, MarvBear. And thanks a ton for the responses, shifter and hdporter, most appreciated!

 

I will do as you suggested right away, first thing Monday. I found I can take a money order to a regional facility and have them credit it instantly.

 

The CA is Sequium Asset Solutions. Is there a chance they will refuse to remove adverse information? Is it like a late fee where once the adverse information is there, it will stay there? This page seems to say:

 

Quote

For now, most collections accounts can linger on your credit reports for up to seven years from the time the debt originally became delinquent, or more than 30 days past due. If you pay off an account in collections, it will still appear on your credit reports as a paid collection.

 

Also, if they do remove it, any idea how long this will take? I'm trying to find out if I can apply for a mortgage later this week.

 

Thanks again :).

Edited April 24, 2023 by FixTheProblems

[FixTheProblems]

One other question. Some articles seem to say that the collection entry itself might remain even after being paid off:

 

Quote

They may agree to label the collection as paid (if you did in fact pay it), but they won't delete the collection entry itself.

 

 

The suggestion seems to be to try to do a pay-for-delete where the CA pre-agrees to delete the collection entry as well:

 

Quote

 

A collections agency may be willing to entertain a pay-for-delete, where you pay some or all of that debt in exchange for them deleting the item from your credit report.

Not all creditors are willing to do so, but it can be worth trying to negotiate. Just be sure that if the company does agree to a pay-for-delete, you get it in writing before making a payment. If you pay off the debt and they never delete it, you’ll have no recourse;  you’ll simply have a paid delinquent account instead of an unpaid one on your credit history.

 

 

Is this worth pursuing? Could the CA not take the stance that even though it was originally Comcast's fault, I could have paid the CA?

[shifter]

7 hours ago, FixTheProblems said:

Some articles seem to say that the collection entry itself might remain even after being paid off:

Yes that's why you don't pay the CA. By paying the OC (Comcast) they can't list it as a paid collection because the account was pulled from them. Some CAs may try to just update the account to paid, but that's why you send them the letter I mentioned in my sticky thread. And if they don't follow through then you sue them and collect some cash.

[shifter]

7 hours ago, FixTheProblems said:

Also, if they do remove it, any idea how long this will take? I'm trying to find out if I can apply for a mortgage later this week.

It's possible it could be quick, but it is unlikely to be this week. I would plan on at least 2-3 weeks in my head. Pay them today and then fire off the letter to the CA today CMRRR. Of course if they end up being a pain and you have to sue them, that will take more time.

Edited April 24, 2023 by shifter

[FixTheProblems]

That makes sense, got it :). For anyone reading along, the thread @shifter is referring to is this one.

 

There's even a couple of folks who dealt with Comcast, with seeming to have succeeded though one seems to have had trouble getting CA to delete (no updates on that one either way).

 

I paid Comcast today. They still showed the balance on the account and accepted payment for it. Now to send CA a letter CMRR.

[FixTheProblems]

@shifter would you advise against calling CA? I was thinking of calling in addition to sending a letter CMRR to help things move faster?

[shifter]

3 minutes ago, FixTheProblems said:

@shifter would you advise against calling CA? I was thinking of calling in addition to sending a letter CMRR to help things move faster?

The problem with calling is you're unlikely to get ahold of anyone who knows anything. They just get paid to collect money. Not to mention they don't have any proof you actually paid Comcast. You just have to send the letter and be patient.

 

If they are a reputable CA, they may automatically delete the TL when they get word from Comcast that the account has been pulled and it will happen quickly before they even receive the letter.

[FixTheProblems]

That makes sense, thanks a ton for your insights, @shifter, I much appreciate it!

 

Both letters are ready (to Comcast and to the CA), and I'll take them to the post office tomorrow. Here are some extracts, do let me know if something seems off:

 

Quote

 

[snip]

 

I spent months talking to different representatives who have finally confirmed that there is no balance on this account. Comcast also finally informed us that they might have undergone a mix up with billing from another customer unrelated to me, but that regardless, there is no outstanding balance due Comcast for the above reference account or any other current account I have with them.

 

[snip]

 

Specifically, the current collections entry reporting to credit bureaus must be deleted since it was based on this error. This report is potentially causing me hundreds of thousands of dollars in additional mortgage costs, and should these costs be realized, I will be forced to seek damages for them.

 

 

One poster in the other thread had their account set to PIF, and not deleted, which is my main worry. I will give Comcast (not the CA) a call tomorrow FWIW, since a different poster in that thread had some luck with that, though it's very unlikely to talk to anyone with any real knowledge or authority.

[hdporter]

Just want to note that fingers are crossed for an ultimate very satisfactory, positive outcome out of this!! 

[FixTheProblems]

5 hours ago, hdporter said:

Just want to note that fingers are crossed for an ultimate very satisfactory, positive outcome out of this!! 

Thank you for the good vibes, @hdporter! I really hope so too, and will report back on what happens 🙂.

[legaleagle2012]

If they don't remove it, Comcast has arbitration in their agreement. Name them as respondents and the CA as their agent. Let's see if they want to pony up $4,000 in non-recoverable arbitration fees over a Cable bill. 

[FixTheProblems]

On 4/27/2023 at 4:29 AM, legaleagle2012 said:

If they don't remove it, Comcast has arbitration in their agreement. Name them as respondents and the CA as their agent. Let's see if they want to pony up $4,000 in non-recoverable arbitration fees over a Cable bill. 

 

Thank you, that's very helpful to know, and might be the next step here if I don't hear back from Comcast. Arbitration seems like a good in-between step before considering a lawsuit. And hopefully as you said, the specter of arbitration will get them to resolve it amicably instead.

 

As advised in this thread, I made the payment, and then, I've mailed out CMRR letters to Comcast and the CA. I've called Comcast and filed an issue to a very receptive and intelligent agent (rare thing!). He advised me the would call back within the same day, but unsurprisingly, it's been several days, and no calls.

 

Meanwhile, I applied and didn't get a mortgage (again, not surprising), which itself makes me mad: we lost the house we were interested in.

 

The mortgage application had a disclosure from the lender, showing us my credit scores: 699, 688, 699 (Transunion, Equifax, Experian). For comparison, the scores from a similar application several months ago were: 796, 820, 796.

 

All three of them have only this single collections as derogatory info:

 

Key factors that adversely affected your credit score:

DEROGATORY PUBLIC RECORD OR COLLECTION FILED

LENGTH OF TIME SINCE DEROGATORY PUBLIC RECORD OR COLLECTION IS TOO SHORT

[shifter]

2 hours ago, FixTheProblems said:

The mortgage application had a disclosure from the lender, showing us my credit scores: 699, 688, 699 (Transunion, Equifax, Experian).

How do you not get approved for a mortgage with those scores? People get mortgages with 550 scores. 

[FixTheProblems]

46 minutes ago, shifter said:

How do you not get approved for a mortgage with those scores? People get mortgages with 550 scores. 

I was told the reason was it's a jumbo. I spoke with three lenders. All said the same: they wouldn't say it outright, but implied that their cutoffs are 700. From what I could tell, one of them had a cutoff of 720. They all did mention that the cutoffs for conventional mortgages were lower, in line what what you mentioned. My understanding is, jumbo loans are seen to be riskier and need a higher score.

 

If there's a reputable lender that approves jumbo mortgages for my scores, please do let me know. Or perhaps there's a jumbo lender that uses a different scoring system than FICO? Would love to know if there are. "VantageScore 3.0" gives me 762 despite the collection account.

Edited April 30, 2023 by FixTheProblems

[legaleagle2012]

Save the letter; it's good evidence.

[FixTheProblems]

On 4/30/2023 at 4:57 AM, legaleagle2012 said:

Save the letter; it's good evidence.

Unfortunately, the lender told me over the phone that he couldn't submit the application because of the low credit score, and that he didn't have anything to give in writing. I plan to pursue this more to see if I can get it in writing.

 

Meanwhile, my credit report got updated, and unfortunately not in the way I was hoping. The collections record now says "Paid in full." This makes no difference to FICO2, 4, 5 scores. I know my CMRR letter got delivered last week. So the CA must've seen it, but must've heard from Comcast that the collections debt was still valid at one point, but now PIF, so they updated to PIF.

 

So that didn't work. I guess I have no options now but to continue pursuing things on the Comcast end.

[shifter]

12 hours ago, FixTheProblems said:

I know my CMRR letter got delivered last week. So the CA must've seen it, but must've heard from Comcast that the collections debt was still valid at one point, but now PIF, so they updated to PIF.

It doesn't matter what Comcast said. The CA wasn't paid so they can't mark it as PIF. Unfortunately for you, you are dealing with a scummy CA and now you have to go to stage 2 and it's going to take a minute to get this fixed.

 

I would probably send another letter CMRRR, pointing out that they didn't follow the instructions in the original letter, reminding them that they weren't paid and cannot report the TL inaccurately as paid and with very strong language threatening to sue if they don't delete the TL. 

 

At the same time, I would also file a CFPB complaint against the CA stating that they were not paid and cannot report the TL as paid. 

[hdporter]

On 4/29/2023 at 11:01 PM, FixTheProblems said:

They all did mention that the cutoffs for conventional mortgages were lower, in line what what you mentioned. My understanding is, jumbo loans are seen to be riskier and need a higher score.

just to clarify this point, there’s a dollar limit on individual mortgages that are purchased and packaged into securities so as not to overweight a mortgage portfolio with too few mortgages, reducing the dispersion of risk.  Investors purchasing these securities hold pieces of individual mortgages, thus face less risk than when investing in just a handful of mortgages.

 

Mortgages whose value exceeds the stated threshold amount for inclusion in such securities are called “jumbo” mortgages.  Issuing banks can’t resell these 

via the securities market, thus typically hold them in their own asset portfolio.  Because of the resultant concentration of risk vs securitized mortgage securities, mortgage issuers are necessarily more selective in the jumbo mortgages that they will underwrite, setting a higher FICO threshold.

[hdporter]

13 hours ago, FixTheProblems said:

So that didn't work. I guess I have no options now but to continue pursuing things on the Comcast end.

You may wish to refer to my post re Comcast contact.

[FixTheProblems]

@hdporter I forgot to mention: your webpage contact info indeed has proven valuable in getting Comcast to actually start responding, thank you a ton! I sent a copy of the letter in sent via USPS/CMRR via the page you mentioned, and I got a call back from Comcast. They said they're going to route it to the right department. This is just a start, but it's good because this is the first time Comcast has actually responded to the issue. I wish I'd looked this up last year when all the billing agents I spoke to were clueless as to what was happening and were unwilling to help. It might've helped escalate the issue.

 

Anyway, keeping my fingers crossed they'll actually route it to someone who is able to see what is happening and has the authority to fix it.

 

Thanks again!

[shifter]

1 hour ago, FixTheProblems said:

Anyway, keeping my fingers crossed they'll actually route it to someone who is able to see what is happening and has the authority to fix it.

Your problem is that even if you get a sympathetic individual at Comcast, they have no control over what the CA does, nor are they likely to understand anything about credit reporting. I'm afraid you're going to have to fight the CA directly on this. They are the only ones who have the power to fix the issue. It's time to play hardball with them.