I just received my hubby's credit report, he has a collection account for 246.00, and the date of activity is 12/95. So does that fall off as of 12/02? And if I go ahead and pay this off, which we want too, would it then be marked paid and still fall off 12/02?? I know some have advised me to try to make a agreement that if I pay off balance to orginal creditor, that they take it off completely. So since it was already sent to collection , can I still try to make an agreement with original creditor? And if so, what is the best route to take? Thank you for your advice!!
The key is who has the item on your credit report. You want to make a deal with them, and get it in writing! Before you do that, you could also try disputing the record with whichever bureauit appears on a couple of times, and see what happens. Keep in mind that any payment on the account renews the "Fall-off" rule. Be smart when you pay it off. I once had a $41 collection account that was almost 6 years old on my credit report. The agency couldn't tell me exactly what it was for. Instead of a protracted battle, I made a deal with them to pay them $20 if they removed it from my report. They faxed me the offer in writing, and the items was gone within 45 days.
Well i don't want to clock to start over again!! But I am a little confused, some have said offer to pay the orginal creditor, while others have said pay the collection?? Not sure which is correct, I mean it seems to be that the collection agency nows has the debt? Just want to best way to get out of this mess!!
If the original creditor is not on your credit report, you don't care about them. The only person that can remove the bad credit item is the one that put it there (unless your dispute works). Unless you need this resolved quickly (less than 90 days), I would try a couple disputes with the CRA. If they fail, call and make a deal with the agency. Tell them that you want proof of the debt, like copies of bills. They likely will not have that. Then tell them that you don't understand why you should pay a bill that they cannot substantiate. This is when the bargaining will begin. If the statute of limitations has expired (varies by location), you can sweeten the pot by pointing out that they don't have a judgement. DO NOT SAY THIS UNLESS YOU ARE SURE IT HAS EXPIRED! They really have very little they can do to you over a $250 debt beyond your credit report. So use this leverage. Good luck!
Oh yea...make sure they agree in writing to have it deleted. They might try to bait-and-switch by making it "PAID" which is still negative.
Ok I checked the statue of limitations for the state the debt was orginally in. It states that it is 4 years. So the date of the last activity was 12/95 which would make the limitations run out 12/99. So now what exactly do I do?? Should I just try to dispute it? I mean the statue means how long they have to collect payment, correct??
TO get a court judgement, their only way of collecting it, short of intimidation (i.e. your credit report). LIke I said before, I would try disputing it a couple times, and if it doesn't work, call them and see where they are. If you call as an educated consumer and know about the SOL, they will probably be ready to work any deal they can on money they can't collect anyway.
Eric, I am in a rush to clean my credit report. On one account, the collection agency said they would delete it from my report (I paid them.), but I did not get it in writing. In the event they do not delete it, will I have any recourse? On another - which has also been turned over to a collection agency - the original creditor shows up on my credit report. How- ever, this original creditor will not accept payment from me. What to do? My present financial situation is such that I can take care of these obligations - just that I do not know how to proceed. Many thanks, Marvin
If you don't have it in writing, it's your word against theirs. Even though most collection agencies are at the bottom of the gene pool, quite a few will pull their end of the deal. Removing the bad credit item is a standard tool they use to get money, so it's safe to assume that they have a standard procedure for removing it if it's part of the deal. You might call them back and ask if they wouldn't mind putting it in writing. Sometimes it can take a while for them to get it deleted (through no fault of theirs). Since a collector is like a salesman, if he's a decent guy, he should send you the documentation. If it doesn't go away in 30-45 days, give them a friendly call to check on it. On the original account, I'd dispute it on all bureaus that list it, and keep disputing it till it comes off. Just call the number on the report. It's quicker that way, and I've never had a problem. Remember, every time you dispute, you get 1-2 free copies of your report. Realistically, I wouldn't expect any results for at least 30-60 days, if you are lucky.
While it's technically illegal to dispute a legitimate item, the CRAs feel no guilt for adding unsubstantiated crap to your reports. Save yourself some money, and try disputing it first. Collection agencies are notorious for keeping poor records--especially for accounts that have gone beyond the statute of limitations. It's very likely it will not be verified, and it will be deleted from your husband's credit report. Just in case it does verify, or you feel too guilty to dispute the item, be very careful as to how you go about settling. You do have the upper hand in this matter, so decide on a range that you'd be willing to pay before you contact them. To begin with, offer them about 10% but don't agree to pay anything over half the original amount. From there, follow Eric's instructions carefully. They are quite practical and sound. Just to reinforce that, check out Carreon and Associates's website. If you don't feel confident enough to take care of it yourself, you might contact Carreon and Associates for help. Whatever you do, just follow the golden rule of debt settlement--GET IT IN WRITING! I've helped my daughter settle quite a few collection accounts. The ones that have gone beyond the statute of limitations are my favorite. We just settled a $350 electric bill with a collection agency for $40. The debt was 5 years old, and it was removed from her credit reports. Not only did I insist that they fax me the terms in writing, I attached the terms to the money order. By endorsing the money order, they agreed to the terms set forth.
>> By endorsing the money order, they agreed to the terms set forth. That's worth absolutely nothing. Many previous rulings have substantiated this. What if you wrote on the money order "If you endorse and cash this, you owe me your first born child" ?? Attaching and/or writing on a check or money order will NOT hold up. It it would, then people would run out, get a brand new $45k loan for a nice BMW, then write "PAID IN FULL IF ENDORSED AND CASHED" on their first check to the bank and walk away. Your agreement IN WRITING with authorized signatures on their letterhead are golden. But the check/money order endorsement issue is worthless.
>> Keep in mind that any payment on the account renews the "Fall-off" rule. Be smart when you pay it off. If you agree to a "payment PLAN" on an exisiting debt, it will modify the original delinquency date (also referred to as the date of last activity). But if you pay off a debt in full, or reach an agreement and settle it for less than the original amount, then you will NOT change the ODD/DLA. The simple act of paying it off or settling it does NOT mean that the ODD changed - it's STILL way back when. But if you make payments, you've essentially re-aged the account, brought it back to a current status and, hence, modified (as you refer to it) the "fall off date".
Once a debt goes to charge off or collection it can never go back to current by making a payment. The rule is that it is to be reported from first delinquency or charged offto profit and loss date. If you make a payment on a charge off it will not restart the reporting date but it can renew the statute.
Can you or someone else provide a sample letter that has been proved to be effective in settlement AND complte deltetion of the tradeline? Also, which has been found to be the preferable way to deal with agencies in regards to these issues, by telephone or strictly via mail?
http://www.carreonandassociates.com/offercomp.htm Jim wrote: ------------------------------- Can you or someone else provide a sample letter that has been proved to be effective in settlement AND complte deltetion of the tradeline? Also, which has been found to be the preferable way to deal with agencies in regards to these issues, by telephone or strictly via mail?
I got the information from the Carreon and Associates site. While the endorsement agreement might not hold up for much, it simply provided me more documentation than what I was faxed. When it comes right down to it, I don't think a collection agency really and truly has to honor any such agreement, whether it be on a money order or on their own letterhead. Fortunately, my daughter's legitimate debtors have come through. Perhaps most success comes from whom you talk to and how you talk to him/her. Just be nice, and don't show them the attitude that they owe you something. It's actually the other way around. Also, don't try to lay on any sob stories. You're dealing with people who have heard it all, and no one likes a whiner or manipulator, so they do little to help such people.
See the post below from Carreon and Associates. Personally, I've found that a phone call can work wonders.
