Hi everyone, thanks for looking. I just checked on the bank and my Home Equity Line of Credit was frozen. I usually donâ??t keep money in my checking account because I owe money in HELOC, so I put all my money to pay for my debt. If I need money then I pull from HELOC. Now my HELOC frozen, that means I donâ??t have money to pay for my bill. I called the bank they said I have a drop on my Credit Report score. I checked my 3 credit report and found out a Collection Agency reported for nonpayment and 2 Closed HELOC for 1 of each over 30 days late payment. I believe the 2 Closed HELOC will not affect me that much, but the Collection Agency as followed: XXXX Collections Agency Address: Address Date Reported: 07/08 Date Assigned: 03/08 Creditor Classification: Medical/Health Care Creditor Name: XXX Dental Insurance Account Number: ###### Account Owner: Individual Account Original Account Owned: $$$ Date of 1st Delinquency: 01/08 Balance Date: 07/08 Balance Owned: $$$ Last Payment Date: N/A Status Date: 07/08 Status: D â?? Unpaid Comments Medical Can the bank just drop my HELOC because of just ONE Collection Agency record? Is there any way I can remove the Collection Agency record? What should I do first? Thank You!
Unfortunately they can - just like credit cards can drop credit limits from one day to another if they notice anything funky in your credit report. How much do you owe the collection agency? Try to dispute that debt with the CRAs as "not mine". While they "investigate" that entry should fall off your report. If it comes back as "verified" see if you can settle that debt - with the understanding that once you settle they completely remove it from any/all CRAs.
Its a valid account owed $600 from my Dental insurance. (I saw a dentist on 03/2007 and insurance company mailed me the check, I gave the dentist another insurance and got paid. So the dentist billed 2 of my Dental Insurance for the same service and got 1 paid, but I believe I received 1 check from 1 insurance). I heard that I can negotiate with the Collection agency from reading the post or I can just pay the CA and the record will be remove?
First try to negotiate the debt downward and get them to agree that they will remove anything/everything related to this account. If they refuse and insist on you paying the full amount just say that you will IF they completely remove the account from the CRAs. Play hardball with them.
Wait... Ah... That means that you double dipped the insurance? Did each insurance company pay $600, for a total $1200 benefit paid on a $600 covered service, or did the dentist double dip the insurance? Your description is confusing. If the double dip occurred, someone owes an insurance company $600...
This is a common problem. You should always have at least six month's worth of expenses in the bank in ready cash--CDs, etc. You shouldn't use your house like an ATM. Even if you get the collection account removed, there's no guarantee that the bank will reinstate your HELOC--especially if the value of your home has decreased and the LOC is more than the value of your house. Expect to see more HELOCs reduced or even cancelled.
Greg, how do I negotiate with them? What should I start with? Just got back from Credit Union. TU completely removed, but Experian and Equifax still have it with consumer comments trying to dispute, which is no use... From Collector above, showing a cleared check under my name. I have record of deposit it... HELP!!!
