Stuck baddie, 1 year from being SOL and 4 years from falling off. Every single loan I go for mentioned this TL. They won't budge, they won't change the info, they wont respond. Since it is still in SOL, would you tackle it in any way or just leave it alone? It's an OC who has never sent it to a CA for some reason and who updates every single month.
I would pay or settle the account; without knowing all of the details, it sounds like this account is hurting your (financial) life, by causing rejctions for credit applications. Often, there are the "stuck" ones, and you just have to live with them. But, the good news is that there is no "CA" account on this. You may want to pay/settle, and request a "Pay For Deletion". If they do not agree, then after paying/settling, you may try disputing to see if they do not "verify". In short, pay it and move on.......I'll bet you'll feel better with it behind you.
I think PFD is a great option. If you decide to do this, get it in writing before coughing up a penny. Good luck.
Thanks guys, they will not work with me on it. I tried, they told me they do not accept PFD and will only note the account as paid or settled. Then that re dates the DOLA so they can report it for 7 more years instead of 3 more years. I have disputed it about a year ago, it can came verified and they just updated the file and sent me new bills with allot of new fees. Wonder why they havent sent to a CA, because if they do, dont they have to mark the balance to 0. I have fought of CA's and did well with them, but OC's seem to never budge.
Sometimes OCs figure that they have to report it and report it accurately. While, the OC is bound by law to report accurately, they aren't bound to report anything if they don't want to. The trick (from what I've read, is to try and frame the PFD as a removal of inaccurate information (and get them off the "hook"). You might need to go up the supervisory chain a link or to to get any traction on this. Whether you should appeal to their humanity or their fear of a lawsuit is hard to tell from here, but there are several approaches you can take. Because you are negotiating from a relatively weak position, you need to be much more creative in finding the hook to get them to turn around on this. Good luck.
Paying or settling does not effect the reporting period (7 1/2 years from Date of First Major Deliquency, or perhaps DOLA). Paying off the debt will not extend the reporting time for your credit reports. For this very reason, they probably do a lot of their own collections, and figure it is worth their while financially.
Thank you both for your great info. Biz, I always thought that a payment re ages the account to the new date of payment. That is why I see so many not wanting to pay or settle. Guess we were wrong. Appreciate your help as always.
A (partial) payment on an old debt does extend the SOL for legal collection, but it does not change the SOL for reporting.
Hey Biz. Called this OC and asked them if they would accept PFD and they said no, asked them if they would settle for 50%, she said yes, when I said that is great, when I told her that I would need it in writing and that you would update the report she right away said, yes, we will update as a paid settlement and it will only report for 7 years. WHAT.. I told her you cannot report it for 7 more years, the date to come off in 2010 and that will be 7 years from DOLA, she said that doesnt matter as you are making a payment... No.... not a payment, an agreed settlement that does not change the DOLA. She said it does because you did not pay it in full. I told her that according the the laws you cannot do this, she said according to our terms and agreement that you signed we can. I told her I would think about it and will call her back. She then told me that it has been placed for collections and you probably will be hearing from them soon. Yes, it is killing my score, 1500 limit and with all the fees and etc they have aded it is now 2400 range. Any suggestions.
Agree to the settlement but insert the following language: "Each party agrees that this matter is confidential and that no part of this matter, or even that this matter existed, shall be disclosed, confirmed, verified or divulged to any third party whatsoever at any time for any reason." They will probably accept this. If they do, they just agreed not to verify the TL to a CRA. Once the deal is done - agreement signed and money paid, you dispute the TL with the CRA. If they verify the TL they just breached the Settlement Contract and you sue - not for a FCRA or a FDCPA violation, but for Breach of Contract.
While flying has stated the best way to handle the situation I would like to amplify on his post Those are large size business style check and give room for printing on the back of the check. Take the check home and cut several sheets of plain paper to the exact size of the check to use for practice. Make up the agreement so that it can be printed on the back of the check at the top. Use 6 point bold type and use the wording provided by IFR or on my website at http://www.creditwrench.com/westcap.html and practice with the blank strips of paper until you can get the wording and spacing correct then print it on the check itself. You would also be well advised to include the same wording on a cover letter.
While Creditwren gives another possible solution (and it is called a CONDITIONAL ENDORSEMENT), I feel mine is better for the following reasons: 1. You have the right to amend a contract while it is in the negotiation stage, and by inserting that paragraph you are exercising that right. 2. A Conditional Endorsement has certain requirements as to notice that vary from state to state. You should check with your State's Uniform Commercial Code to see what those requirements are in your State. for example, Arizona requires teh statement "Conditional Endorsement" to be placed above the restricting statement. Failure to do that makes the conditions null and void. 3. By inserting the verbiage in the settlement agreement you create a binding contract that is much easier to sue over.
I'm not getting into any verbal fisticuffs with IFR or anybody else over this one. I will hold my position on using a bank certified cashier's check and a cover letter with the same wording that is on the back of the check on it and sending it certified mail return receipt requested. Also get "in register" photocopies of the check before you send it off. Just tell the copy shop person you want an "in register" copy of the check. Maybe get two or three copies just for safety sake. In register means that if you hold the copy up to a light it will look just like the original front and back exactly as the original check would look if you hold it up to a strong light. The copy shop operator will know exactly how to do it.
Also, be careful about understanding the differences in terms used. When the rep you spoke with said the "DOLA" would be updated, she was correct. A payment will change the DOLA. The reporting time for your credit reports will not change. Often these reps do not understand the reporting laws, or know them completely. If you have doubts, call the CRAs, and ask how they would report the situation. If the CA is not reporting a Date of First Major Deliquency, then that is another issue you have with them. Good Luck..
