I have been reading this board, searching the archives, reading other websites and have some questions about so called credit repair, if I dare call it that. In some of the websites I read, the only way to correct my credit report is thru payment of terms and good payment history and that these items stay on my report for 7 years, unless it is bankrupcty. To my understanding, this tells me that if I have any negative accounts, that have been charged off, I will have to deal with the collection agency that is now handling that and hope that they agree to some settlement for less, or pay them in full. I also need to get them to agree to deletion of any negative items on my credit report. OK, easy to write, but perhaps even harder to do. I know the errors appear in credit reports and have seen where a collection agency has appeared on my own credit report as of last year as a new acount, for some older account charged off, close to the SOL in my state. I guess this restarts the 7 year clock, or a violation, due to the same account appearing twice on my credit report? But what I am reading and think that I understand, and please correct me if I am wrong, but please do not flame me for this, is that I know I have a debt with say ABC company and it is close to the 7 year mark and that seems to be the magic number that these agencies start a hard pursuit, I am to challenge this and get out of the debt due to a techincality? Not that I am not willing to look at these options and willing to use what I can to get out a debt. But my question is, if I send out a validation letter, they send back copies of contract with my signature, am I not sunk at that point? For example, I have a $1500.00 debt with ABC company, that I allowed to be charged off 5 years ago. In the contract that I signed with ABC comany, of course in small print, I agree to all collection fees, interest and other charges. So now $1500.00 debt, 5 years later has doubled. For whatever reason, I have not recived notices about this debt, until I get some letter stating I have 15 days, or legal proceedings will start. So instead of trying to negoiate a bad $1500.0 debt, I now must negotiate a $3000.00 plus debt. Does this not mean that these companies get their money no matter what? I know that this makes no sense, because I cannot make any sense of this credit thing either. To make a long, confusing story short for my case, I came into difficulity a few years ago, due to some exhorbiant medical costs. My priorities at that time, where paying for the medical costs, having a roof over my head and paying for utilties, which were cut off at one point. Phone service was maintained for access to 911, no long distance calls allowed. At that time, creditors were calling and demanding payment. I told them the story, to which they did not belive, cause they have heard them all. I asked for some time, longer than 6 months as I anticipated a change, but could take a year and to work with me. Their goal is to get their money and they don;t care if you die in the process, money was the issue. I did the right thing on the front end and they were unwilling to help, except for one creditor. The other creditors all charged off the acounts and now they are approaching the 7 year mark and they are wanting to sue. My attitude is, of had you been willing to work with me in the first place, I would not be here and the courts attitude, is things have changed as I told them they would, so pay up. Yes, I did move in this time and gave change of address to all creditors. But did not receive notices until this past year for intent to sue. So I now have several accounts charged off, that I know last payment made many years ago, but colection agency showing up as new accoint and due to fall off in another 5 years. I know that these accounts have not been paid since 1996 with the orginal creditor. This is all confusing to me and if someone could help me to understand, I would apprecaite it. I have a small amount that I can agree to make settlements with, but is not enough to satisfy all the creditors. You get over a major medical castrophe and now survive, when not expected and things are finally looking up and perphaps can get on with life and now this!
The 7 years you are referring to is the time limit that negative info can be reported on your credit reports. Collectors/creditors can try to collect and/or sue you many years after the fact, but your defense is the statute of limitations which gives creditors a certain amount of time to collect on a bad debt. The length of the statutes vary from state to state. What you need to do is get copies of all your reports and find out exactly what the situation is. Then you can report back here with your info and many people here will be more than glad to help you. As far as the collection acct. being reaged to show as to be deleted in another 5 years, that is illegal. If the charge off was in 96, it should come off in 2003 no matter what the collector says. It goes by the last date of activity, which is approximately when you made your last payment. So, I suggest you get your reports, read the posts here, do a search here for disputing credit reports. Also, check the letter section on this site for some good letters you may be able to use. Any questions just ask.
Welcome to the board. You understand a lot, but some of what you think is being influenced by information that is designed to make you think there is nothing you can do. First, what state are you in? It is important to know the statute of limitations for different types of debt in your state. The "statute of limitations" begins with the last payment you made on the account, and it is the length of time creditors have to collect their money. After the statute of limitations is up, they can still sue you, but if you show up in court and defend yourself by saying the SOL is up, they cannot win. This SOL is different than the 7 year reporting time limit. The 7 yr reporting time is the length of time a negative account can be reported on your credit report. This time begins on the date you actually default (last payment before you became continuously delinquent), plus 180 days. This date never changes, even if a different collection agency has taken over the account. The system does not work very well. If it did, people like you would be able to dig out and get back on their feet, by telling the truth and having creditors work with you. However, there are laws to protect you and give you a chance. It is imperative that you understand these laws, and how to use them to take care of yourself. Otherwise you will never recover financially. Your creditors do not care, the collection agencies do not care. The law protects you, but you are on your own when it comes to understanding and using it. And then there is Creditnet. We care. We understand the laws. Most of us have been there. We know what you are going through. Many of us have found the way back. It isn't easy. It takes patience and time, but it can be done. The best thing to do is get down to specifics, and start dealing with each debt and each derogatory item on your report. Can you spell it out for us? You can do it two ways, all at once, or one by one. 1) If you want to tackle them all at once and get an overview of how to proceed: How many accounts defaulted on? What kinds of accounts are they? How much money involved? How long ago did you default? Have you made any payments? If so, when and which accounts? Have you been served or are they just threatening to sue you? Or 2) Just pick out the worst one, give us the info listed above, and we will help you with it. Then you will get the feel of things by doing it. Your choice. Throw your guilt and fear and embarrassment out the door, you won't need them here, and they are the weapons the collection agencies and credit bureaus use against you. This is not just a website, this is a community. We will be your "credit family" while you get through this.
Thank you for some clarification on this. As for credit rports, they only show the last 2 years of credit history. On one of these accounts, I am 99% positive that I have not paid since 1996, but it show current until about 1999, with a chargeoff, with a collection agency showing as new accoount last year. The orginla account as chargeooff. If i KNOW that I have not paid within the last two years on this acount, (yes I could be wrong, but doubt it, had not extra money to pay crdit accounts) how does it show current, then chargeoff and new acount with collection agency? This sounds like some fancy footwork on the collection agancy to keep the account on my credit report, but without some solid proof, how do I go about this? I mean, if you have not paid a ulity bill, what makes one think I paid a credit card bill before my uliites? SOL in my state is 6 years to file lawsuit. I understand this as they can file on year 5, day 364 and get lawsuit? I guess taken that this date is not a weekend or holiday? I went online today and got online credit reports. I was 624 with experian, I think, meaning middle high risk. I have several accounts that are paid in full, balance of zero and no late pays and unsused prior to 1996. These I also cancelled myself, so I would not use them. They show as positives, if i understood my credit report. Do I leave them on my creidt report? If so, would a lending company question why I have not used them and they are open credit? If i can post some specifics to the board, I will, of course leaving off personla info. Trying to make the best of a bad situtaion. "Just when you think life gets easy, there is a roadblock."
It sounds like the CA has "re-aged" the account. Are you sure you don't have some paperwork stashed away somewhere that would help you prove this? An old late notice, or statement, something saying your account has been charged off? An old credit report? Who is the original creditor? Which collection agency is it? Are they calling you? Have they sent you a letter? You are right about them filing a lawsuit yr 5 day 364. That wouldn't be hard to beat though. You can stall them, as a rule, unless it is some huge amount of money. Keep in mind that they think you don't know the law. Don't talk to these CA's and don't do anything until the picture becomes a little clearer.
Welcome to the board. You understand a lot, but some of what you think is being influenced by information that is designed to make you think there is nothing you can do. Thank you for the welcome. I like to think that I understand, that is why I am asking questions. Thank you for the response. First, what state are you in? It is important to know the statute of limitations for different types of debt in your state. The "statute of limitations" begins with the last payment you made on the account, and it is the length of time creditors have to collect their money. After the statute of limitations is up, they can still sue you, but if you show up in court and defend yourself by saying the SOL is up, they cannot win. I live in TN. SOL is 6 years. This I found on two different websites. This SOL is different than the 7 year reporting time limit. The 7 yr reporting time is the length of time a negative account can be reported on your credit report. This time begins on the date you actually default (last payment before you became continuously delinquent), plus 180 days. This date never changes, even if a different collection agency has taken over the account. I undestand your point on this, TN has 6 years to sue me, if they don't do that, after 7 years ir has to fall off my credit report, if not, I have laws that proctect me for this. From the credit report I pulled, it only shows the last two years of payment. For some reason two accounts show current, then a chargeoff within the last two years. I am alsmost 100% positive that I did not pay them during this time. Yes, I can look thru old bank statements, etc, but that is alot of paperwork to look thru.. No am not suggesting that this was to be easy. Hindsight is always 20/20. The system does not work very well. If it did, people like you would be able to dig out and get back on their feet, by telling the truth and having creditors work with you. However, there are laws to protect you and give you a chance. It is imperative that you understand these laws, and how to use them to take care of yourself. Otherwise you will never recover financially. Your creditors do not care, the collection agencies do not care. The law protects you, but you are on your own when it comes to understanding and using it. I know that the creditors do not care, there only care is money in their pocket and how they get it, does not matter. And then there is Creditnet. We care. We understand the laws. Most of us have been there. We know what you are going through. Many of us have found the way back. It isn't easy. It takes patience and time, but it can be done. Thank you for creditnet. I think my best piece of advice is and excuse how corney this sounds, but when we are young, we have this mentality that it can't happen to me. We see news stories about some really bad thing. We look at that, think thank God, that is not me and go on with our life. We may feel some pang of empathy, but never think it can happen to us. Then it does and suddenly your life as you knew it, changes forever. You are given a second chance at life and you do your best, till you encounter the collection agency and it's attorneys. You try to be honest and work out a solution to benifit all you, but coollection agency wants all the money and interest and fees and God knows whatever else. The best thing to do is get down to specifics, and start dealing with each debt and each derogatory item on your report. Can you spell it out for us? You can do it two ways, all at once, or one by one. Yes i can give specifics. Can I post the collection agency name, orginal creditor name and amount? 1) If you want to tackle them all at once and get an overview of how to proceed: How many accounts defaulted on? What kinds of accounts are they? How much money involved? How long ago did you default? Have you made any payments? If so, when and which accounts? Have you been served or are they just threatening to sue you? Or 2) Just pick out the worst one, give us the info listed above, and we will help you with it. Then you will get the feel of things by doing it. Thank you so much. You are a wealth of knowldge and the board has access to letters, etc. I appreciate that I can ask a question, prior to proceeding blindly. "Just when life gets going, there is a roadblock."
Yes, it doesn't hurt to post CA name, etc. many times other users can give you insights into dealing with that CA or creditor. Just not anything that makes you identifiable - keep in mind that these CA's and CRA's read this board. With the thousands of accounts floating around, I doubt they coud identify you from posting names and amounts. Sometime people will use their first name in one post, last name in another post, then they have posted their state of residence somewhere else, and later on post a copy of a letter they wrote - bingo, I think someone who was trying could put 2 and 2 together. Probably not, but we have one case where that actually was done, and the individual got a letter from a CRA about posting on this board. If nothing else, change minor details to keep it from being identifiable.
I have a few, that I will wait to post on, Need to look some more at them. #1 Have a repo of a car, also redeemed 6/2000. I am pretty sure paper work easliy found on this one. Including recipt to Western Union, etc. Credit rport says under account history: Repo 7/2000, 6/2000 Two dates, is this not a conflict? 60 days as of 5/2000 30 days as of 4/2000, 11/1999 under status: it lists repo, past due 60 days. status details: this account to continue on record until 4/2007. My facts on this one: Car repopoed about 6/2000. FULL payment made in full, by western union, Car redeemed about 10 days later. NO, did not make deal with creditor to delete negatives, needed car back to go to work! In the process, found that title was to be sent to me. Nvere was, contacted state title board, now have to send money to have title sent to me. Not that this matters! I am pretty sure car repo looks bad on credit report. How to make this one look better? Please help. willing to beg on this one to orginal creditor...Primus.
Okay, step one, dispute the account with CRA as "incorrect status." Then get your documentation together. All you really need is that darn title and you canprobably zap it, depending on which finance company it is. Some of them are mean and keep records forever.
