Consumer complaint: I have a debt with XXXX XXXX XXXX ( XXXX ) I have been paying on my debt monthly via online payment and have not defaulted. I received a debt collection letter from ARC management group ( XXXX ) stating I 'd defaulted and {$330.00} had been sent to collections. I called XXXX XXXX last week I believe XXXX or XXXX to inquire why they 're submitted a debt to collections. I spoke with XXXX at extention # XXXX. I waited on hold for some time while she investigated the issue. She stated that it was found to be an system error. I have XXXX account number with XXXX different dates of service, each date as an amount due, when I submit my payment online which is an option they provide as a way to make a payment. When doing so their system has not been distributing my payment to all XXXX dates of service. So XXXX of the amounts has been sent to collections by mistake. She told me that it should n't have gone to a collection agency because Ive been making a regular payment, she says the issue has been sent to a supervisor or manager to be investigated. I express my concern that this may damage my credit and ask how long till it resolved, she tells me to call back on Monday and that I may call the collection agency to let them know the issue and dispute the collection. I call ARC and speak to a woman named XXXX XXXX, I try to explain the reason, I 'm calling, she is very dismissive and states that she does n't know why XXXX would even suggest I call them. That this is a issue they need to address. I ask her if I can disputed the debt, She states she does n't know, " I do n't know if you can dispute it '' I state I dont want it to go on my credit, she says it may go on your credit today..tomorrow ... anytime. She was incredibly rude and could care less about my concerns. I hung up with her to calll XXXX XXXX back I spoke with another woman who stated the same thing as XXXX and said I should call back and I 've continued to call back, I 've spoke to various people all not offering any solutions at XXXX XXXX. XXXX woman I believe her name was XXXX stated she spoke or left a message with the account manager ( XXXX ext : XXXX ) and transferred me to her voicemail, I left a message, explaining my call with my phone number and have heard nothing back. XXXX informed me that it was policy that once a debt was sent to collection they could not call the collection agency and cancel it even if it was invalid. So in the meantime while they investigate their mistake this debt may post to my credit and there is nothing they could do, even though the error is theirs and not mine. I called ARC again, and spoke with a man. I explained my problem, he seemed to be a little more helpful. I asked to dispute the debt. He stated he could give me a discount instead and that would be the better solution because it 's not going to " go away '' and he could discount by debt from {$330.00} to {$280.00} I explained that due to my last communication with XXXX XXXX, that I questioned their conduct/ethics and before I could continue I was disconnected. My complaint is with both companies, XXXX XXXX XXXX, for submitting a debt to collections even though I 've been making my payments and admitting it was their mistake and taking no action to correct the problem in a timely manner nor informing me with a notice prior to submitting the debt to collections. And ARC Management group for their unprofessionalism, failure to allow me to dispute the debt or provide me with the steps to do so, using scare tactics when I expressed my concern of the debt posting to my credit and XXXX XXXX stating it could post today or tomorrow, also offering a " discount '' to coerce me into just paying the debt as oppose to disputing it, and the sudden disconnection during my conversation with ARC staff. 

Company response: Company believes the complaint is the result of a misunderstanding