Consumer complaint received 10-01-2015 about Debt collection (Medical) with Merchants' Credit Guide Company (IL).
Issue: Cont'd attempts collect debt not owed
Sub-issue: Debt was paid

Complaint: Merchants Credit is conducting unfair and perhaps illegal business practices to the detriment of my financial security. For the last few months, I have been working directly and consistently with XXXX XXXX to resolve medical billing issue and Merchants Credit was made aware of this direct relationship. Background : XXXX quoted me just over {$100.00} for a XXXX then billed me nearly {$1500.00} when the procedure was over. After finalizing the bill, I set up a payment arrangement with XXXX for {$50.00} per month for the balance. During these negotiations, I received a letter from Merchants Credit notifying me that they were attempting to collect payment on this debt. On XXXX XXXX, 2015, I called and spoke with their agent XXXX and informed him that I was and had always been working directly with XXXX. I followed up on XXXX XXXX, 2015 and spoke to supervisor XXXX XXXX. Again, I informed XXXX that I already had a payment plan in place with XXXX, to please contact XXXX regarding the matter, and that I wished not to be contacted regarding the issue because Merchants Credit continued to try and collect this debt that I was already paying. 

Instead of following up with their client, Merchants Credit and XXXX XXXX continued to attempt to collect this debt - one that does n't not belong with their agency and that has always been in good financial standing, never having been a day late - unbeknownst to me. Merchants Credit will not take my word what I am working directly with XXXX XXXX nor will they allow me to provide any evidence verifying the payment plan and the financial status of the account. Furthermore, Merchants Credit has continuously refused to communicate with their client to confirm that this account indeed does not belong with them. 

When I received my credit report XX/XX/XXXX, I noticed these account reporting for the first time ( Merchants Credit is reporting XXXX different accounts that actually fall under XXXX bill and XXXX payment plan ), meaning Merchants Credit had several months to reconcile their records with their client - a simple phone call - but instead chose to report this debt to the three major credit unions - XXXX, XXXX, and XXXX. This is again, a debt that I do not owe them - I am already paying it directly to XXXX XXXX and they have been aware of that since XX/XX/XXXX. When I spoke to XXXX XXXX on XX/XX/XXXX, I tried to mediate the issue by offering to call XXXX on a XXXX way call to quickly confirm the payment arrangement - he refused, saying " he wo n't be on a three way call with anyone '' and " he does n't do business with them like that. '' XXXX XXXX also threatened that when XXXX XXXX confirms everything I have said is true, Merchants Credit will not take the account off of my credit report, but rather report the balance as being paid in full. This is NOT a satisfactory resolution of the issue because " paid in full '' reads as though the balance was rightfully in collections, it was n't, and that I paid it off and it will still remain on my credit for the next seven years ( this gives a consumer with an account rightfully in collections no real incentive to pay off the debt because the derogatory account will remain and the " paid in full '' designation does n't add any major gains to the credit score ). Rather, I would like Merchants Credit to confer with their client ( as they should have and should not be forced to have to do ) OR to allow me to provide proof that the relationship exists and that the money has been consistently paid.

Company response to consumer: Closed with explanation