Help with Credit Issues!! Newbie here

Discussion in 'Credit Talk' started by jmc912, Apr 3, 2013.

  1. jmc912

    jmc912 Well-Known Member

    Hi everyone,

    I have been reading posts here for a week or so and am trying to soak in as much information as possible. I am currently working on my husbands credit. We are anticipating purchasing a home in the next year or so. I have nearly perfect credit (I have one payment on a CC that was 30 days late back in 2008), but other than that have a clean slate with all of my accounts in good standing including a car loan that was paid off.

    Here is a little background information on my husband: his credit is currently "poor". He went through a pretty nasty divorce a few years back that really did him in financially. His ex wife had been taking his kids to the hospital and putting him as the responsible payer but using her name and address. Well, she never told him about the bills so he never knew about them. He travels for work 50 weeks out of the year and at the time had no access to his mail. Because of this, he has several accounts on his credit report that are now in collections. However, until we recently checked his credit report he had no knowledge of these accounts. He was still married at the time these were opened so I don't think disputing that it was fraudulent would work. I am hoping for some advice and help with a plan in cleaning up his credit. I have already added him as an authorized user to 3 of my credit cards and added him as a joint user for 1, hoping to boost his credit a little.

    Some of the items on his report are within a few months of "falling off". Those I think we are going to be leaving alone and just letting them fall off. I would like to work on the others that are not due to fall off for several years, but I am unsure on how to approach this matter. We have enough disposable income to completely pay off all of these things if needed. However, I am treading lightly here and would like a plan other than just calling the collection agencies and paying off the balance. I know that calling the collection agencies and paying the bill often is not the right thing to do. Ideally, these would just disappear after paying them (in a perfect world, where is the credit fairy when you need her!?)

    Here are the items in question:

    AR Resources Inc. (Medical Bill)
    Placed for collection 6/3/2010
    Amount: $58
    (Transunion says this will be removed 12/2016)

    AR Resources Inc. (Medical Bill)
    Placed for collection 6/3/2010
    Amount: $108
    (Transunion says this will be removed 12/2016)

    Credit Financial Svc Inc. (Medical Bill)
    Placed for collection 11/12/2007
    Amount: $60
    (Transunion says this will be removed 12/2013 (Will probably let this one fall off)

    Merchants Assoc Coll Div (Medical Bill)
    Placed for collection 12/14/2009
    Amount: $78
    (Transunion says this will be removed 4/2016)

    National Recovery Agency (Dental Bill)
    Placed for collection 5/30/2012
    Amount: $104
    (Transunion says this will be removed 2/2017)

    Service Credit Union
    Account closed 5/16/2011
    Amount: $83
    Overdrawn account (this one is his fault!)
    (Transunion says this will be removed 4/2018)


    So, the accounts aren't for large amounts. I just need some direction on where to go from here. I am walking on eggshells because I know it's easy to shoot yourself in the foot with one wrong move. I am not sure that just calling and paying these items off is the correct move to make.

    I hope I have provided enough information and thank everyone in advance for their help. I have already learned so much from reading this forum.
     
  2. Heather L

    Heather L Well-Known Member

    That was a smart move to add your husband as an authorized user to your credit cards. Just make sure none of your credit cards have high balances on them. That could hurt his score instead help his score if the utilization on the credit cards are too high. If you added him to the credit card that has a 30 day late on it I would remove him. Unless this credit card has a super high limit and long payment history. Thanks! Heather with BoostMyScore.NET
     
  3. mindcrime

    mindcrime Well-Known Member

    Welcome to the forum!

    While I am not versed on whether a person can create a situation where their spouse becomes liable (solely?), perhaps another member here can shed light on that.

    In the event they cannot do this, there are several avenues of relief he can begin taking, he could start with not mine disputes on every one that she signed his name to. Wait one round and see if it comes back verified. If it does, move on to DV letters to each CA. Subscribe to a monitoring service and monitor he reports to see if the CA violates the FCRA.

    If being married does allow for that, he may want to try a PFD option. Maybe mix up a little GW adjustment (though not normally used in this case) in it as well alluding to the fact that he did not directly incur these charges (if the CA actually validates they'd likely see that).

    Oh and I wouldn't bother calling any of the CA's...it likely will get you no where.
     
  4. Logan Abbott

    Logan Abbott Well-Known Member

    Mindcrime and Heather - Really good advice as always.

    jmc912 - In my opinion, these look ideal for Pay-for-Delete Letters. Simply paying these debts won't make them disappear from your credit report (as if it could be that simple, right?). PFD Letters put in writing that you're willing to settle for some or all of these debts on the grounds that the CA stops reporting these debts to the credit bureaus. Since these are relatively small debts, I think the chances of working out a PFD on some or all of these debts is very do-able. Here's a link to a sample PFD letter.

    That said, as mindcrime mentions above it may be worthwhile to dispute these as not mine. The process can be arduous but it could ultimately save you some $$ if even just one of these debts cannot be validated. Plus, it looks like you have some time to sort this out before you begin the loan approval process - way to think ahead!

    And finally, follow mindcrime's advice and stay off the phone with these CA's. Keep everything documented and organized and it'll make the process easier.
     
  5. jam237

    jam237 Well-Known Member

    The main thing may be what it says in the divorce decree. If he is responsible for the children's medical expenses, then that may be correct, HOWEVER if it is silent, and the mother is getting support, my personal argument with the CA would be that HE is not the responsible party, HIS EX-WIFE is.

    Then I would make the same dispute to the CRA; it would essentially be the reverse of the Johnson v. MBNA dispute. If the CA verifies the information to that SPECIFIC dispute, I would personally file a suit against the CA for violating the FDCPA for reporting false credit information, and the FCRA for improperly investigating HIS EX-WIFE'S responsibility for the debt. (Hint: I would file for $1,000 for the FDCPA violation, and $1,000 for the FCRA violation (the statutory minimum is $100-$1,000 - but you don't get what you don't ask for). So for each account you're talking going from a small debt, to a $2,000 asset. :) A really strong motivator for the CA to just let it go. :)
     
  6. jmc912

    jmc912 Well-Known Member

    Thanks everyone for being so helpful and welcoming!

    Heather, I pay of all of my credit cards every month, so they usually have a $0 balance. I did not add him to the card that has the late payment on it. So I think I've dodged the bullet there! The cards I have added him to are with various creditors (Chase, Navy Federal Credit Union, and a US Air card).

    Mindcrime, the issue is that they were still legally married (not even separated) when she incurred the charges. Since he was never home, he never saw the bills or even knew that she took the kids to the hospital. I think it would be difficult to claim that they aren't his. Also, how would signing up for a credit monitoring service show if the CA is violating the FCRA? Sorry, I'm not too familiar with credit monitoring services.

    Jason, I was thinking of doing a PFD letter and actually came across that sample yesterday! Now, if I am going to send out DV letters, and they all come back as "validated", then I can move on to a PFD letter, correct? I have not made any phone calls yet to the CAs! I feel like I'm in a minefield so have been very careful and haven't called or disputed anything so far. I'm waiting until I have a solid game plan!

    Jam, unfortunately, they were still married when she incurred these charges without his knowledge. In their divorce decree, it does say he is responsible for half of their medical care, but I'm assuming it was from that point forward. Anything before he was solely responsible for. Therefore, I'm assuming your latter advice about filing suit would be null and void, correct? Since at the time he was legally financially responsible for their medical expenses.

    So I have a few questions at this point. I can send a DV letter to the CA's, but I don't need to send one to the one that hasn't gone to collection yet, correct? (Specifically the one with Service Credit Union... We know that's legitimately his mistake). Also, typically how long is the process after you send a DV letter? Are they pretty timely about getting back to you? I'm wondering if I should just skip the DV step and go straight for the PFD? I don't know if asking for DV then sending a PFD seems fishy to them, I don't want to lessen my chances of a PFD!

    Thanks again everyone, I really appreciate it! I'm trying to do as much research as I can on my own, but it's super helpful to have advice that's specific to our situation.
     
  7. jmc912

    jmc912 Well-Known Member

    Sorry, another question just came to mind:

    My husband has 2 items in collection with AR Resources. When sending them either DV/PFD, can I combine them into one letter? Or write a letter for each item? They both come from the same children's hospital and were placed for collection with AR Resources on the same day.

    Thanks!
     
  8. jam237

    jam237 Well-Known Member

    Drats, that is the fly in the ointment.

    It's fine including both in the same letter. or sending one letter for each, its mainly a matter of preferences.
     
  9. mindcrime

    mindcrime Well-Known Member

    Signing up for a monitoring service will enable him to check to see if the CA's follow procedure of 15 U.S.C. § 1681s-2 (a)(3) Duty to provide notice of dispute. This is why its important to send all documentation through certified mail.

    Yes, but don't jump ahead just yet. Send your DVL CRRR and subscribe to monitoring service. I use EQ's...it's $13 a month for their CW Gold w/ 3in1 monitoring. It's okay, I like it even though they pissed me off one time, LOL. The idea is to let them screw up on their own accord and that way regardless of any validating, if they violate the FCRA, you have THEM on a violation which as jam pointed out could get you $100-$1000, none of which any of these are close to in balances.

    Do you mind me asking why he was solely responsible before they were divorced?


    The one that's not reporting, try to settle with the OC direct. IF you can get them to pull the account back from the CA you stand a better chance than simply paying off the CA 'quickly' in hopes they'll never report. In your DV letter, give them 30 days. There's no real timeframe to go by but that is a fair time in the eyes of the courts. Ex: You can't DVL them, signed for it on 4/1, print your CR reports 4/3, and sue them on 4/4.

    Good luck!
     
  10. jmc912

    jmc912 Well-Known Member

    Thanks Jam and Mindcrime!

    Thanks for the info on the monitoring service, I'll be sure to sign him up for that. So the monitoring service will automatically notify you if the CAs are not following procedure?

    He was solely responsible for the families income when they were still married... He was gone 50 weeks out of the year, and she was home with the children (not working), therefore, he was the one paying all of the bills. At this point it's irritating but we are just trying to move forward and get this fixed. He doesn't have a problem paying the bills, he is still responsible for 1/2 of the kids medical care, but it's just annoying that he was never notified of these bills (or he was and she was just throwing them away... not caring because it wouldn't affect her credit at all.. therefore more money for her to spend)

    Okay so let me just clear up what you are saying:

    -Send DV to every account that is a negative/in collections in his credit report
    -Wait for them to respond (30 days)
    -If they validate, send them a PFD letter (and hope it works!)
    -If they can't validate, he is off the hook (does it then automatically come off your report or do you have to dispute?)


    I was under the impression that you wanted to DV/PFD with whoever is reporting on your credit. Is that correct? Service Credit Union still has that account... so it wouldn't need to be "pulled back" to anyone... Sorry you kind of have me confused with the first few sentences of that last paragraph! Are you advising that I should contact the OC for ALL of the accounts that went to CAs and try to get them to pull back the accounts?

    I think I recall reading somewhere on this forum that you should NOT sign any letters you send the CA... They just need the account info and your return address, right? Do they need a social?

    Also, I just noticed that his two accounts with AR Resources have the same account number (with different amounts due)... Is this a red flag or common?

    Thanks again!
     
  11. mindcrime

    mindcrime Well-Known Member

    Unfortunately, no. (wouldn't that be nice). The idea of subscribing is so you can pull a fresh copy of his report each day to verify whether notice of dispute was provided.

    DV letters are only for collection agencies/third-parties, not OC's. Debt validation has to do with the FDCPA. This law does not apply to original creditors. Therefore, the Service Credit Union account would not be subject to this and sending a letter to them won't do anything for you. SCU would probably fall more under a PFD....don't just send the LTR to customer service. Find someone high up, like the CEO Gordon A. Simmons...or maybe a little lower if you want to try to work your way up the chain.

    With your first round, go gently with the DVL's if you plan on using a PFD option later. The site has sample letters for you to use and modify to your liking. There's no automatic coming off of your reports, unless the 7YR mark passed. If they can't/don't validate, dispute the account. They can't verify the account as valid to the CRA while failing to respond to your request for validation. Also (CR monitoring comes into play here) they need provide notice of dispute to the CRA. With such small balances that he has, violating just one provision can be a big problem for them.


    Sorry, one option is to try to work with the OC, meaning contacting them (get to a higher up) explaining your circumstances (away 50weeks p/year) and seeing if they'll pull account back. It's simply another route you can take. I personally have had success with this. This way however, yields no chance of FCRA/FDCPA violations and unless you can settle for xx%? AND get OC to recall account back, you're basically paying whatever is owed. By choosing the other method of DVL's there's a greater chance the CA's will just delete and go away. If these medical/dental practices are small and he has some sort of relationship with them, he may have greater success in asking OC to pull account back method.


    Correct, don't sign anything. You don't want that signature transposed on another document he never actually signed. No SS#. Just name, address and account # listed on report.

    Could be two separate invoices that is owed to the same doctor and they're just using his patient account number.
     
  12. jmc912

    jmc912 Well-Known Member

    Mindcrime, thank you so so so much!! You really cleared everything up for me. Now I have to get to work and see how far I can get! I think I have a good grasp on things now. Before I just wanted to be sure that I had a plan and knew what to expect before just firing off and paying the accounts without a PFD or DV, etc.

    This forum has been so helpful! Even reading older posts has paid off tremendously for me and I appreciate everyone's help on our specific situation.
     
  13. Logan Abbott

    Logan Abbott Well-Known Member

    Best of luck and please keep us updated on the outcome!
     
  14. jam237

    jam237 Well-Known Member

    Its a good idea to send the ca the dv letter and the dispute to the car a few days later. That way there is a chance to remove it at the same time as the ca dispute.
     
  15. jmc912

    jmc912 Well-Known Member

    Thanks Jason and Jam!

    I will report back... Sending out the first DV letters tomorrow and one PFD!
     
  16. Logan Abbott

    Logan Abbott Well-Known Member

    Good luck!
     
  17. jmc912

    jmc912 Well-Known Member

    Okay some good news so far... Called Service Credit Union and they were super easy to win over and said it would be no problem at all to completely delete from my husbands report. They did advise that after they got payment it may take up to 4 weeks to fall off. Yay!!

    Now just waiting on DV to come back from the other 3... Did I read somewhere on here that about 5 days after you get your green card back from the DV you should dispute with the CRA?

    So excited... 1 down, 3 to go! Also signed up for a credit monitoring service so I can track how his scores are improving with each deletion
     
  18. jam237

    jam237 Well-Known Member

    Did you get the deletion information in writing from Service Credit Union, if it's not in writing, it may not happen.
     
  19. jmc912

    jmc912 Well-Known Member

    Unfortunately the woman said that they don't do that and can't sign anything like that... But she verbally promised a few times that they would totally delete it... I tried for it in writing so I guess I'm just going to hope that everything will work out like it's supposed to! I'm having faith... I trust them more than I would a CA that's for sure
     
  20. mindcrime

    mindcrime Well-Known Member

    Yes, I would give the CA 5 days to provide their notice of dispute to the CRA's. Check your report every day and print/screen print the account NOT listed as 'disputed'. On the 5th day go ahead and dispute it through the CRA.
     

Share This Page