Can someone please confirm if a creditor has a right to report an account that has already been paid??
We had medical bills that were unpaid. They bounced around to a few different creditors but were never reported to the credit bureau. Finally we received a lawsuit from a company that was able to provide proof that they owned the debt. The amount wasn’t right but the company refused to budge and accept anything less than the full amount they were asking (including all of the legal fees). Long story short, we paid the full amount even though it was incorrect because we didn’t want a judgment to mar our credit and we didn’t want the negative credit reporting.
The amount was paid in full in July and the company dropped the suit and sent us a receipt. I’ve seen my credit report since then and the account hadn’t been reported. I checked my report today after a coversation with an Equifax representative who kept trying to verify me by asking about “a collection on my account”. Reviewing the report that I pulled today showed that the company posted 6 different collections for the medical bills in August. Granted they are all showing as “paid” but I didn’t think that they were allowed to report them at all since they’ve been paid and they never reported them before.
Am I wrong on this??? I know that the paid collection is still better than not having paid the accounts, but I don’t want ANY collections at all to show on our reports. Any assistance would be appreciated!