Thats pretty typical, they know where the debt is being collected you just need to escalate it to a manager that cares. Low lever people that answer phones are lazy. Its not uncommon to use their Ombudsman if they are dragging their feet.

Alternatively if you want. Challenge Equifax... all items need to be accurate and verifiable on your credit report so if Citi insists the debt is a $0 balance then get a letter from them saying so then forward it to Equifax to update your credit rating.

Either way you get it sorted out.

Thanks for the advice, I have contacted my sister and she is willing to pay a settlement figure, however when I contact CityFinance they say the account is closed and a 0 balance - I asked if there was a debt collection agency appointed and they said no. They couldnt give me any further information. So where do I go now?

My suggestion is to arrange to pay it off then, unless you don't need credit and the lower score doesn't bother you.

Let your sister know she let you down, she should be pitching in to fix this after all.

FYI you can also settle that for less then you owe in a lump sum settlement - do some digging around on this site for some DIY info, there is tons out there.

the last payment was made January 09

Yes they can. re: fixing the credit. How long ago did the last payment get made?

Three years ago I acted as a guarnator for a store card for my sister. She moved overseas and defaulted on the loan. I have never had any calls from either the store or the collection agency however recently I have received a copy of my once perfect credit score that is now in tatters. Can a collection agency do this to your credit score WITHOUT any notification? What can I do to repair my credit score?