Lawsuit Filed Against Collector, Experian and Hospital Over Credit Reporting

by Mike Bevel, CollectionIndustry.com

A debt collector, a credit reporting agency, and a hospital are all on the wrong side of New York real estate attorney Jacquelynn Vance-Pauls good graces. All three are named in a suit filed by Vance-Paul that claims they violated her rights under federal law.

In her lawsuit, Vance-Pauls claims that her good credit rating was damaged by ?an unscrupulous? Monticello debt collecting law firm, Michael Zager, P.C., and ?the negligence? of the Experian credit reporting service. Arden Hill Hospital was thrown in for good measure, since the alleged debt arose from treatment she received at the Orange Regional Medical Center. She is being represented by civil rights attorney Michael Sussman of Goshen.

Zager reported a $62 unpaid debt, allegedly owed by Vance-Pauls, to Experian in May of 2006. Vance-Pauls claimed that the bill had already been paid ? five years earlier by her insurance company. When she tried to clear the mistake up, things only got worse for Vance-Pauls. According to her complaint, rather than fix the error, Zager?s office pressured her to sign a release of claims and pay money she did not owe. When Vance-Pauls refused, Zager again falsely reported to Experian that Vance-Pauls owed the Arden Hill bill. As a result, her credit was further damaged. Because Vance-Pauls owns her law practice, Zager?s negative report also affected her business credit.

According to Sussman, both Zager and Experian violated federal laws protecting consumers. ?Zager?s firm appears to have acted with utter contempt for the law. Under federal law, debt collectors are prohibited from this type of abuse of power. Consumers need to know they are not powerless in the face of deceptive practices and misconduct. Experian also dropped the ball. When Ms. Vance-Pauls protested her report, it failed to do any due diligence and ignored her proof that Zager?s report of a debt was in error. Unfortunately, this type of experience is not an isolated one. Consumers must know that if they find mistaken items on their credit reports and those mistakes are not corrected, they have rights under the law.?