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How do I resolve an incorrect collections account?
I had an ambulance service in December 2010 that I found out had been sent to collections in 2014. They were demanding the full amount be paid because it was overdue, even though it was the first notice I received. I had insurance at the time that would have covered the expense (I verified this with the insurance after the fact, and I had met my deductible). After contacting the collection agency several times, it was discovered that the ambulance company recorded the wrong information including my name and social security number. It is possible they had the wrong mailing address as well. My insurance company put in a lot of effort to investigate the matter as well, and even offered to pay the amount so long after the fact, if they decided to file a claim; it would be rejected at first, but with some paperwork and legwork, they would approve the claim. I contacted the collection agency and, of course, I volunteer to handle all of the work. They have refused to cooperate with me.

Most recently, they recognized that my social and name were incorrect, but instead of removing the debt, reissuing the debt to go through insurance or have the opportunity to pay out of pocket, or anything of the sort, they have informed me that they will restart the collections by issuing it to new collectors to report on my credit report. This has already begun. I have multiple derogatory marks for the same bill from different agencies. They have also informed me that they are restarting the date of service so the collection will not fall off my report in 2 years; it will restart from 7 starting in August 2015.

I have contacted the most recent reporting agency. I am now being told, if I can obtain a letter from the company admitting their mistake, I can be offered a discount on my payment to remove the collection from my credit report. It is several hundred dollars.

Is there any alternative to this situation? The original issuing agency will not deal with me, the credit bureaus will only file disputes, and the collection agencies only want money for a mistake someone else made. Any advice would be greatly appreciated!

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Call a consumer law attorney that handles FDCPA cases in your state right away. First, they are not allowed to restart the 7 year clock. Secondly, it is illegal for multiple collections accounts to be placed on your reports at the same time. This company is not only being completely rude to you, but they are violating your rights as well as the law. Under the FDCPA (fair debt collection practices act) you will be able to file a lawsuit against this company which will most likely result in entire account deletion as well as them paying you damages and paying your attorney's fees. Many FDCPA attorneys will work on contingency, meaning that you will not have to pay any money up front. I suggest the law firm of Kimmel & Silverman if they practice in your state. If they do not practice in your state, some searching on Google should help you find a law firm that handles FDCPA cases in your state. You should also do some reading on the FDCPA so you can better understand your rights. I wish you the best of luck with all of this and I urge you to act now and put a stop to this.

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