I just got my 3 in 1 credit report from TrueCredit and it seems that almost all of my issues are regarding "colletions accounts". Aside from one bad account my revolving and installment items are current. However, I have 4 collection accounts (3 hospital and 1 cable ) that have been written off. The good news is, none of them are paid so apparantly I have some negotiating power. What is the best way to proceed to pay these accounts in full and then have the negative remarks removed? Is this possible? D-
No you must negiotiate in writing (by the collection agency) to have removal before paying a cent. once you pay, they won't play.
Do I dispute / negotiate with the collection agency or the CRA? Is Lexington effective handling collection issues... negotiating a settlement and removing the item?
If you pay them off, you lose all protections under FDCPA and you are unlikely to get them taken off your credit reports. Happens sometimes, but very rarely. I'd fight them all the way to the bitter end and make them eat the debt and take it off your credit report as well. That's what I do and I've never yet failed to get an adverse listing off credit reports. Start off with a validation letter and take it from there.
dispute-negotiate-settle That is the technique to use. If you dispute the collection account, meaning force the collection agency to validate the debt, there may be a chance to get it removed. Most collection companies won't/or can't validate the debt. Therefore; by law they must remove it. If they validate the debt, negotiate payment for removal. Don't call, send everything certified return receipt. You need to create an audit trail. Hope this helps. It worked for me.
Sample negotiation letter: Dear Sleazebag Collection Agency: Please prove I owe you any money. And if you can't prove I owe you money, plan on the fact that I will sue you at the earliest possible time. I refuse to pay any money because I know that if I do you will not remove it from my credit report and I will have to live with it for the next 7 years after I make the last payment to you. What do you think I am, stupid or something???? I don't owe you any money and you are not able to prove that I do, so get off my back. --------------------------------- And if anybody thinks I'm being "funny", yes I am. But you might as well send them something like the above because if you do pay them, they will repay you by keeping it on the credit bureu files against you for the next 7 years. Better to demand validation and then when they fail to properly validate sue them and make them pay the bill and take it off your credit bureau files to boot. That always works because they never learn what it takes to properly deliver a validation letter. I don't think collection agencies even know what one is, let alone do it.
ugh... I dont want to sue them, I just want to pay them 1/2 of what I owe & get them to remove it from my report.. is that so hard?
Doodyhead All I can tell you is try it and find out the hard way. I've heard some people say they have been able to negotiate and get the negative removed. Maybe 1 in a thousand or so if that. Who said you actually have to sue them? I've never had to yet. Just the thought theat you might sue them has always been enough to scare the pants out of them because they know that if you have the right goods on them the damages could run into the thousands of dollars real easily plus the attorney fees to defend themselves. All you have to do is to know enough of the law to be able to recognize when they have broken the law and how. Then you write your validation letter in such a way that they will almost automatically break the law anyway and the fight is on and they lose every time. They are not going to fight much when they know they have been caught with their pants down and you aren't about to even give them any vasoline. It's not hard. All you have to do is go at it the right way.
