Every square inch of the North Shore of Staten Island is being developed for new town houses, which range in price from $300,000 and $475,000. That’s about the price of a studio apartment at Manhattan, and many young buyers are eagerly signing up for first-time buyer programs that provide assistance in financing. The process may also be the first time that these potential homeowners learn about the value of good credit, and about how a negative credit report can harm their chances of becoming a homeowner.

One close relative of mine, who thought he had a perfect record, found to his dismay that his mortgage request was being held up because a collection agency had listed a charge-off on his credit report for an old cell-phone account with a major provider that was closed two years ago.

He contacted the provider and was told the charge was for early account termination – and the company conceded it had never sent him a bill. His account was sold to the collection agency, based in Westchester County. The agent at that company informed the young man that he had better pay the $288 to clear his record and ended the conversation by saying: “Don’t say we didn’t warn you.”

It turns out that my relative’s was not an isolated case. The young man was about to pay the bill to clear his credit but decided to check up on the collection agency. He did a Google search linking the cell company and the collection agency and, lo and behold, he found complaints from consumers all over the country involving the same parties and the same threatening language. Several of those consumers said they never even had a cell phone but the collection agency refused to adjust the negative report unless it received payment of the disputed bill.

I’m not revealing the name of the cell-phone provider and the collection agency because many of the complaints posted online are anecdotal and warrant more investigation. I did speak with a press officer at the cell-phone provider, who confirmed the company had sold accounts to that collection agency. Such agencies, she said, were required to follow all the guidelines of the Federal Fair Debt Collection Law.

I also spoke with a representative of the New York attorney general’s office, Maritere Arce, who said the office had received 21 complaints against the collection agency in 2004. The nature of those complaints, however, is still to be forwarded to me. She also referred me to the New York City Department of Consumer Affairs, which handles the licensing of collection agencies dealing with city residents. I spoke there to the agency spokeswoman, Dina Importa, who was very helpful and suggested that the young man file a complaint with the agency. She directed me to the agency’s Web site, which contains a consumer complaint form.

For prospective home-buyers here at Staten Island, time is of the essence. Prices are climbing rapidly for houses at the North Shore, especially the areas of St. George, Stapleton, and Tompkinsville, which are all within walking distance of the ferry and an easy commute to Lower Manhattan.

The executive director of the Downtown Staten Island Council, Roberta Jacobowitz, said: “This is the area of Staten Island that is edgy, funky.” Central Perk-type coffeehouses, art galleries, antique shops, open-mike bars, ethnic restaurants, and beauty salons all dot Stapleton, my home for the past 26 years. Suddenly, my neighborhood is trendy and may soon be way too pricey for anyone of modest means.

Some real-estate companies deal only with those who have preapproved mortgages. Negative reports can take a while to be cleared. Thanks to a new federal law, everyone can take a free look at his credit report once every 12 months, at www.annualcreditreport.com, or by phone, at 877-322-8228. You may also send a request by mail to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. Everyone should take advantage of that offer, whether you’re in the market for housing or new employment.

Ms. Importa, of the city consumer agency, recommends checking the report carefully and reporting any disputed entries directly to the credit bureau. Any consumer who suspects that a collection agency is using unfair or unscrupulous tactics is encouraged to file a complaint with the Department of Consumer Affairs.

With identity theft on the rise, don’t wait until you’re denied credit to discover what’s on your credit report – especially if you’ve ever had a cell phone.