Did you find a Collection Bureau of Hudson Valley (CBHV) charge on your credit report and you’re not sure where it came from? If so, you’re not alone.
Thousands of consumers pull their credit reports every year and find a charge from CBHV that they don’t recognize. Keep reading to learn more about this company and what to do when you find a charge from them on your report.
Collection Bureau of Hudson Valley Example
Marcus found the collection account on a Tuesday morning. He pulled his credit report to ensure that everything was accurate before applying for a new car loan.
On his TransUnion report, he found a $740 collection charge from a company called CBHV. Marcus had no idea what the charge was for and had never heard of the company before. His first thought was to call the number on the report and demand some answers. His second thought was to just pay the charge off so he can get his car loan. Fortunately, he didn’t act on either of those impulses.
Marcus’ story is the same as thousands of other people’s each year. He found a charge from CBHV on his credit report that he didn’t recognize and he’s trying to figure out what to do about it. Keep reading to learn what you should do if you find a mysterious charge from this company on your report.
Who Is CBHV?
CBHV stands for Collection Bureau of Hudson Valley, Inc. The company is a debt collection agency with their headquarters in Newburgh, NY. The company has been collecting debts since 1974 and collects for clients across the country in all fifty states. The majority of the debts they collect are for medical services, utilities, and financial accounts.
What is CBHV?
CBHV is a third-party debt collection agency. This means they collect on accounts on behalf of an original creditor. Original creditors range from hospitals and medical providers to utility companies and credit card issuers. In some instances, CBHV may have purchased your debt. The original creditor would sell your account to a debt collector like CBHV for pennies on the dollar.
Has CBHV Been Around for a While?
Yes. CBHV has been in business for more than 50 years. Despite their longevity, though, the company has a history of federal litigation and consumer complaints. According to the Consumer Financial Protection Bureau, between 2013 and 2019, over 169 complaints were filed against CBHV.
In 2020 alone, 48 complaints were filed against the company, making it number 365 on the list of companies with the most consumer complaints that year.
Better Business Bureau Complaints
CBHV is accredited with the Better Business Bureau and has an A-plus rating. Consumers, however, have given the company an average rating of just 1 out of 5 stars.
This is an important distinction. While it is important to respond to complaints, it is not the same as resolving them. It’s possible for a company to respond to all consumer complaints without actually resolving the issue at hand. This can be seen in the disconnect between the Better Business Bureau rating and the consumer rating.
Federal Litigation
In addition to complaints filed with the CFPB and the Better Business Bureau, there have been at least four class action lawsuits filed against CBHV since 2015. Claims include deceptive collection letters, attempting to collect debts from minors and, as one 2022 lawsuit claimed, the “regular practice” of perpetuating Medicaid fraud by attempting to collect on services already paid for by insurance.
One man’s complaint filed with the Better Business Bureau is typical of many. The 87-year-old man received several collection notices from CBHV for a debt he did not owe. He’d signed up for a service and returned the equipment within days, having a receipt showing he canceled the service and owed no balance. Still, though, CBHV sent him notices.
What to Do If CBHV is on Your Credit Report
Marcus pulled his credit reports when he saw the CBHV account on one of them. It appeared on two of the three credit reports he pulled, though the amounts were slightly different. He didn’t recognize the debt and couldn’t figure out which medical provider or utility company he might owe money to.
This is how many people find collections on their credit reports. The accounts appear without warning, often years after the debt was supposedly incurred, and typically do not provide much information about the debt itself. In the United States, credit reporting laws do not require collectors to prove a debt prior to placing it on a credit report. Instead, the burden of proof falls on consumers, who are essentially assumed to owe the money until they prove otherwise.
In fact, according to a study done by U.S. Public Interest Research Groups, about 79 percent of credit reports contain errors or serious errors. This can include accounts that do not belong to the consumer, accounts that have already been paid and debts that are past the statute of limitations. If a collection account appears on your credit report, there is no guarantee that the information is accurate.
Why People Panic
When they see a collection account on their credit report, many consumers panic. In Marcus’ case, he saw the $740 balance and immediately thought about how he needed to get the debt off of his credit report before he applied for the loan. This is exactly what collection agencies want. They know how credit works and understand the importance of good credit scores for loan and credit applications.
Phone calls and letters ensue. The letters are often printed on official-looking letterhead and contain vague threats about what will happen if the debt isn’t paid immediately. Consumers feel pressure and think that the fastest way to resolve the issue is to pay the debt. What they don’t realize, however, is that the debt collector may know less about the debt than they do.
When debts are bought and sold, documentation is often lost or becomes incomplete. The original creditor sells the debt to one collection agency, which then sells it to another and then maybe another. With each sale, the risk increases that the documentation will become corrupted, incomplete or even fabricated. The account that appears on your credit report may bear little resemblance to a debt you actually owed.
The Danger of Paying an Old Collection Account
As tempting as it might be to pay off a collection account, doing so can be incredibly costly. For one thing, paying a collection account does not mean that it will be removed from your credit report. Instead, the status of the account will change from “unpaid collection” to “paid collection.” The account will still remain on your credit report for seven years from the original delinquency date.
In addition, a paid collection can still negatively affect your credit score. Some lenders still view paid collections as a negative mark when determining whether to approve consumers for credit or loans.
If that weren’t enough, paying an old collection account can actually restart the clock on the statute of limitations in some states. The statute of limitations is the amount of time that a debt collector has to sue you over a debt. In some states, if you pay even $1 on an old debt, it restarts the clock, giving the debt collector years more time to sue you if they want.
Plus, when you pay on an old debt, you’re admitting that the debt is valid. This means that in the future, you will not be able to dispute the debt.
The Status Game
Collection agencies want you to pay an account as soon as possible because it benefits them the most. Once you’ve paid the account, they have the money they want and you’re left with a paid collection that will still negatively affect your credit report for years.
As a consumer, you are at an informational disadvantage when it comes to debt collection. The debt collector may have paid pennies on the dollar for your debt. They may not have complete or accurate documentation. They may be attempting to collect on a debt that was paid or discharged or one that doesn’t even belong to you. But they will never tell you that.
Your silence is the best strategy you have. As a consumer, every single piece of information you give to a debt collector gives them more ammunition to use against you. Every phone call you answer provides them the opportunity to coerce, lie to or manipulate you into providing them with information that makes their job easier. When you ignore their calls and retain a credit repair professional, you’re taking away their power.
How Disputing a Collection Account Works
Informational Gaps
Many debt collectors purchase debts without much documentation. When this happens, collectors are left with very little information about the original debt. Federal law requires that debt collectors be able to verify a debt if a consumer disputes it. Both the Fair Debt Collection Practices Act and the Fair Credit Reporting Act provide a framework for verification and accuracy.
When you dispute a collection account, the collector must verify the debt or the credit bureau must delete the account. This is why purchased debts can be so vulnerable. The original creditor is long gone and records may be archived, lost or destroyed. The debt collector may not be able to provide the original contract, statements or chain of ownership to prove they have the legal right to collect the debt.
Without verification, the account should not be on your credit report.
The Business of Debt Collection
Debt collectors collect debts based on volume. They buy thousands of debt accounts and attempt to collect as many as possible using the least amount of effort. Any debt that requires extra time, documentation or legal energy becomes a money-losing proposition for debt collectors.
When you dispute a debt, the debt collector must decide whether to spend the time and money necessary to verify the debt or simply write the debt off. Debt collectors will not spend more money than a debt is worth to collect it. A $740 debt that is going to require hours of employee time, document retrieval and possible legal exposure is not worth collecting. A smart consumer can use this to their advantage.
Credit Repair Professionals
What to Expect from a Credit Repair Company
When Marcus decided not to call CBHV, he made the right decision. Instead, he called a credit repair company that specializes in removing collection accounts from credit reports. The outcome for consumers who handle collection accounts on their own versus those who work with professionals is vastly different.
Credit repair professionals understand the technicalities of disputing collection accounts. They know what laws apply in a situation, what documentation debt collectors are required to provide and how to escalate a situation when debt collectors are noncompliant. They also serve as an intermediary between consumers and debt collectors, which eliminates the possibility of pressure tactics and manipulation that many individual consumers fall prey to.
When consumers ignore debt collectors and allow professionals to handle communication and disputes, the emotion is removed from the situation. Debt collectors are trained to evoke a reaction and create a sense of urgency to get consumers to provide information or payment as quickly as possible. When consumers retain professional representation, these tactics are completely neutralized.
The Verification Process
When you dispute a collection account, you challenge it on a variety of levels. Is the information accurate? Can the debt collector verify the original debt? Does the debt collector have documentation to prove the amount of money owed? Can the debt collector establish a chain of ownership if the debt was purchased? Is the debt within the statute of limitations?
Credit bureaus have 30 days to investigate a dispute. If the debt collector is unable to verify the information during that time, the account must be removed. Given the informational gaps that are so common in the debt collection industry, many accounts cannot be verified to the letter of the law.
Marcus’ Outcome
For Marcus, the outcome was exactly what he hoped. He found that the debt associated with the CBHV account was for a medical bill he incurred three years prior. He had visited a medical provider, who billed his insurance company incorrectly. When the claim was denied, the provider sent the bill to collections.
The credit repair company Marcus worked with disputed the account, arguing that the original billing was incorrect and that CBHV was unable to provide documentation proving the debt was valid. Within 45 days, the account was removed from all three of Marcus’ credit reports.
Conclusion
What Marcus Learned
CBHV has been collecting debts for more than 50 years. In that time, the company has racked up hundreds of consumer complaints and been the subject of multiple federal lawsuits. The company has a 1-star consumer rating. Just because CBHV has been around for a long time does not mean its practices are valid.
If you have a collection account from CBHV on your credit report, you have options.
For one thing, the debt may not be valid. The documentation associated with the debt may be incomplete or missing altogether. The debt collector may not have everything they need to prove they have the legal right to collect the debt from you. If they do, they would rather not spend the time or money necessary to prove it. Instead, they would rather move on to the next consumer on their list.
Don’t call CBHV. Don’t pay the account in the hopes that it will be removed from your credit report. Don’t assume you owe the money just because it appears on your credit report. In the United States, collection accounts can be placed on credit reports without debt collectors providing proof. It’s up to consumers to challenge them, and it’s often a daunting task. But it doesn’t have to be.
Get Help from a Credit Repair Company
If you have an account from CBHV or any other collection agency that is affecting your credit report, you can get help from a credit repair company. At FightCollections.com, we specialize in disputing collection accounts that are inaccurate, invalid or unverifiable. We understand the laws that protect consumers and the strategies that get results.
Contact us today for a free consultation. We’ll review your credit reports, identify collection accounts that you can dispute and help you come up with a strategy to improve your overall credit picture. You don’t have to face collection agencies alone and you shouldn’t pay debts that may not be valid in the first place.
Your credit report should contain only accurate information. When it doesn’t, you have the right to dispute. We can help you do that.
