Yes, getting added as an AU (as long as it gets reported on your credit reports) is enough to give your FICO scores a boost. You don't necessarily need to be added as a Joint-account holder. This post I wrote is a bit old, but the same principles still apply: Piggybacking: What's the Deal
Thanks for the replies guys, I appreciate the help. Things aren't going as smoothly as I had hoped, but hopefully I can work out the kinks. I have a few questions. I spoke with Northland Group on the phone. From what the guy made it sound like, things are pretty set in stone. If I pay the full amount, I get in paid in full - any amount less is settled in full. He gave me some spiel about how they don't report to the credit agencies yadada and it's frustrating because I keep getting conflicting information. Some companies are telling me they can't do anything about deleting it, others are obliging right away. Could anyone clear up how exactly this process or reporting and deletion works between collector and bureau? Where is the discrepency between companies like NCO who deny by PFD's, and others who accept them right away? Should I be using this dispute process through the bureau more liberally? From what others on this board have said, it sounds like they're getting good results with it. What situations can I use this in? A few examples: say I reach an agreement with Northland Group for 1/4 of full amount. After they receive payment, can I dispute the remark as innacurate and get it removed? Also, I have a remark on my report that I paid in full prior to me starting any of this negotiating. Is this something I can dispute to get removed? I just registered for my MyFico.com's 10 day trial. Is this something I should keep at $15 a month to keep track of how I'm progressing? Or is it better to go through a different site that will give me a breakdown of my report to show what negative items are still on there? My Equifax score is 588. What number would be optimal before I apply for a real credit card?
There isn't any law that requires information furnishers to report data to the CRAs. What I mean by that is a creditor can simply choose to report nothing. What they can't do is report false information. Some companies will take a firm stance and say they don't do PFDs because it's against the law. Others may agree to simply not report something. Also, you always have the right to dispute missing or inaccurate information through the CRAs. This often works for people because once a CA gets their money, they may not respond to a CRA request for information, which could lead to the CRA deleting the account from your credit reports. What does your free trial with myFICO.com give you? Are they providing credit reports too, or just your FICO scores? While it's a good idea to track your FICO scores throughout the process, you're going to need frequent access to all 3 credit reports in order to stay on top of things. Finally, I would suggest at least getting your FICO scores into the 600 range before applying for an unsecured credit card. Of course, you could always go the secured credit card route to start building positive payment history earlier.
Just to expand on what Joshua said... A CA is not required to report anything to a CRA...which is why it's a good idea to try and clear things up with the CA before they report. What "clear things up" means, depends on the situation. When a CA (or any other data provider) reports information to a CRA, it must report it 100% accurately....So if you find an inaccuracy, you should report that to the CRA because they'll want to correct it (not that they'll always believe you, of course). If it's not your account, they'll want to delete it. If the data such as the amount or DOLA is incorrect, they'll most likely correct it and leave it on your report, so think about how you want to proceed, first, if you go down this route. Once a CA has reported an account to a CRA, their contracts with the CRAs prevent them from removing data simply because a CA account was paid. So they aren't blowing smoke when they say they can't delete the account from your report just because you've paid it. But, all is not lost. There's nothing (that I'm aware of) that says a CA must respond to every e-mail they get from a CRA; however, there is a law that says if they don't respond to a request for verification of data from a CRA within 30 days, the CRA must delete the entry (because after 30 days, the CRA can no longer be sure that it's accurate). So, here's how you can make that work for you... Instead of asking them to do something they can't do (PFD), ask them to do something they can (ignore the CRA). Offer to pay (as little as possible to get the deal) if they agree to a non-disclosure clause, wherein they won't tell anyone about this debt or your settlement terms after they receive payment. I hope it's obvious, but it bears reiterating, just in case... GET THIS SIGNED IN WRITING BEFORE YOU SEND ANY MONEY!!! CA's have terrible memories for things they may (or may not) have said over the phone while they were trying to copy down your debit card info. This might not work on a small debt, but if they want your money bad enough, they'll deal eventually. Then after the deal is done, you dispute the tradeline for that account with the CRA. This will cause the CRA to ask the CA about the account. The CA has to ignore that request because to answer it would violate their agreement with you. After 30 days, if the CRA doesn't hear anything from the CA, they'll automatically delete the entry from your report. Don't expect it to be gone on the 31st day, but it should be gone in less than 60 days after you initiate the dispute. It's a little tedious and won't work in every circumstance, but if you're going to make a deal with the CA, it helps to know what they can and can't do.
Hi guys, I found this thread to be very interesting and helpful in my situation. Now I have a scenario that i want you guys to give me feedback on.... I just created a DV letter to send to all the CA's on my report. I stated in the letter that they have the (standard 30 days) to verify that the account is indeed mine and during that time they must cease all contact with all third parties, and also must not continue to contact me unless its via mail, blah blah blah.... So my question is, and it seems a little on the wrong side, but while the CA is verifying my account status, can i dispute with the CRA. Because according to the DV letter they cant come in contact with anyone else besides myself. Which means that the CRA would have to delete, if not verified with them, right?. Please let me know if Im making any sense with this. My mind has been wondering all day on how to repair my credit. Please let me know what you think.
You need to know which debts are original creditors and which debts have been sold by original creditors to junk debt buyers. Who are the debt collectors working for, the OC or a JDB? Original creditors are excluded from the FDCPA's debt validation process. Junk debt buyers must stop all collection activity if instructed to do so in a DV letter. All collection activity INCLUDES negative credit report listings.
I am dealing with a bottomfeeder CA (attorneys) that filed suit one day after they received my dispute validation letter. Am I reading the statues and Wollman letter correctly in that the CA has to suspend / stop all collection activities during the validation period? They sent me some BS information about three weeks after they filed suit. I filed a couple of motions to dismiss for this and other reasons and they were all denied. I would have thought that this suit was not "ripe for litigation" since they had to validate first. ?? I'm in Colorado if that matters.
It sounds like you're going to have to go on the offensive. Remember that your alleged debt and their alleged FDCPA violations are two separate actions. They can sue you for a debt, however, their timing may or may not be suspect. If you believe they violated the FDCPA you can sue or countersue for that. But even if they violate the FDCPA, they can still sue you and collect on a debt. I don't know what the debt amount is or what proof they have that you owe it, but you'll have to get very aggressive in demanding that they prove you owe this money and that they have the right to collect it. Sure, you might owe someone something from the past, but until they prove this, you can't be sure this is a debt you incurred and that they are the ones who can be collecting it, which is why you asked for validation in the first place. 9 times out of 10, their paper trail is skimpy in these situations, but it's hard to tell from where I'm sitting. You could be the 1 in 10 case where they have an iron-clad case. I don't know. But whether or not you owe someone some money, you still have rights under the FDCPA. If they've not followed the law, you'll want to put them on the defensive by suing them for FDCPA violation(s). They're probably suing you in small claims or district court, but if you really want to get their attention, sue them in Federal court for FDCPA violations. It could be that the cost of your law suit would negate anything they might win from theirs. Good luck, you have some work ahead of you.
Thanks for the reply ccbob. Yeah, it's hard to get all the infor into a post but basically, I have entered a counterclaim for FDCPA and Colorado FDCPA violations. I put in a motion to dismiss regarding the early filing by them (and some other issues regarding standing and stating a claim, etc) but it was denied and I'm confused as to why. They also sent some bogus bills of sale to prove their right to sue but one in particular has a notary seal by a person that wasn't even commissioned until almost three months after the document was dated. They also presented a "customer agreement" which is just a generic agreement from the original CC issuer, problem is, it's not even the real agreement (I got lucky and found the actual agreement) and some terms are different. These are just examples of some of the inconsistancies. I was just taking one issue at a time. Thoughts??
Sounds like their paper trail is quite thin at best. I agree with ccbob- you're going to have to really go on the offensive here. What's the status of your countersuit?
The motion to dismiss being denied seems reasonable because that they violated the FDCPA by filing early doesn't affect their claim, it just says they violated another law. If you have evidence they've falsified documents, you should file a motion to exclude the evidence on the basis that it's fraudulent and include whatever evidence you have to that effect. Be careful presenting your version of the contract because that could end up being put into evidence. If you use it, make sure it doesn't work against you. It could also be that the contract they present represent an updated version of your agreement. Often, contracts include a clause to the effect that you agree to updates made to the agreement. Just be careful how you present this.
Thanks a lot for the input, thought this was a great idea. Went ahead and sent out three PFND's (pay-for-nondiscloure) that were worded like this: "If you accept these terms, I will send you a money order or certified cashiers check for the settlement amount of $xxx.xx in exchange for your agreement not to disclose any information regarding this account, including details of the debt or settlement to any third party, including any credit report agency that may inquire about the account. In addition, upon receipt of my payment, you will update this account "Paid in Full." This agreement is binding and will be void should you not hold up to your end of the agreement. " Any feedback? Also, an update regarding my Verizon Wireless acount, which I am anxious to get settled so I can start a new line of service. I called Pinnacle Credit Services to inquire about my account and see if they had received my settlement letter from a few months back. Turns out it's been turned over to another company called "something" and stevens. I'm not sure how to proceed now for a number of reasons. I haven't received anything in the mail from them, so can I still DV them? Even if I can, I'm not sure I want to because it might delay the process and I'm in a hurry to get this account settled. Should I just proceed and send them a PFND or am I risking paying a company that doesn't legally own my debt?
Another update: Just got a reply back from Portfolio Recovery Associates, who I've been in back and forth contact with for a while now. (see previous posts for correspondence) This most recent letter arrived over two months after my last offer. They had previously offered to settle for half and report my account as settled in full. I countered with the same amount but asked for deletion. This most recent letter gives me several repayment options, all of them at a higher amount than their last offer. The best offer is for more than 2/3 of what I owe. If I settled at that, I would still only get a "settled in full" remark. This is a HUGE step backward. Not sure how to proceed. Thinking of waiting a month and then sending an offer for the 1/2 amount using my new pay-for-non-disclosure terminology. 1/2 is really just about as high as I'm willing to go, but of course I am aiming to get this removed from my report. Any advce would be appreciated.
For what it's worth, I would never offer money to a CA without validating the debt first. The DV is just too powerful of a tool to pass up when dealing with any debt collector. Regarding Portfolio Recovery Associates, have they responded directly to any of your communication? Are you sending your letters CMRRR so you're positive they were received? I've seen examples of consumers negotiating PFDs with Portfolio in the past, so I know it can be done. For some reason it just doesn't sound like you've found the right channel of communication yet.
Ok, sent a DV letter to Stephens and Michaels who now owns my Verizon Wireless debt. Also resent a PFD to Portfolio, this time Certified. I will let you know any updates. Thanks
Got a letter back from Northland Group with a duplicate offer I've now received about three times. I've sent PFD's at this price before with no acknowledgment. Almost seems like a stalemate. Should I continue to send out the same PFD or is time to switch tactics? Also, I know getting added as an AU on a credit card was mentioned as a way to improve credit. I don't think this is an option for me and my score still isn't high enough to get an unsecured card. Should I consider getting another secured card to improve my credit? Thanks
So, is Northland receiving your communication and just ignoring it? Maybe it's time for a call just to verify that they have record of the offers you sent and to let them know you're very interested in negotiating a final agreement. Have you been sending your letters CMRRR to them as well? Secured credit cards are defintiely a safe way to get back into credit rebuilding mode. Just make sure that whatever card you choose reports payment history to all 3 credit bureaus. The Capital One Secured card is one of the best options out there. The annual fee is only $29 and they do report to the credit bureaus.
Hey guys, still grinding away trying to settle these accounts. So far not much progress to report other than a small account. Was hoping to get some input: My plan for a while has been to buy a car near the end of the year using a bank loan. I thought I could kind of kill two birds with one stone doing this. Well, I've found a car, and I got approved by a local credit union for a loan. However, it's only for $1000 of the $5500 value of the car. The lady at the bank claims it's not the amount financed that matters, but rather that payments have been made consistently over the course of at least a year. I'm fine with putting up the $4500 myself, but don't know whether or not what she is telling me is true, as my main concern in all of this is building credit. Thoughts? Also, when making payments on a secured credit card, is it best to pay the minimum or full amount, or does it even matter? Thanks guys
The lady at the bank is right- what matters is the payment history you'll generate over the course of the auto loan. Put up the $4,500 and then pay off the $1,000 loan over the next year or so. Regarding the secured credit card, always pay off the balance in full each month. Don't play the minimum payments game. Pay in full and on time each month and your FICO scores will continue to improve.
Payment history is really important to build up , its around 35% of your FICO score. Revolving credit utilization is also important, my rule of thumb is it HAS to be be less than 30%, and ideally between 1%-10% . I have a system of charging one thing each month to each card and then paying it them off in full as soon as I get the statement. It does take time to build up. If you are doing credit repair, you'll see your score spike up as items are removed from your report. I wish you good luck in getting your car.
