Greetings! Thanks to all who have contributed to the forum -- it's been very educational. Bear with me -- I'm a newbie. Here's my story: I started delinquency while in college around 1995, I didn't start doing something about my credit until 1999, and now I'm married w/ kid and trying to buy a house, with 2 charge-offs still being reported. Can't get that dream home, or anything even close to it. Ouch. Having learned from my financial mistakes, I haven't missed a payment for about 3 years now. I'm 27 -- a changed man since my teen years. But the frickin FICO system doesn't seem to care. I paid off about 3 large debts in the last 2 years, and now all that's left are SEARS charge card $2400 (bought by RMA) and CITIBANK visa (bought by CCS LLC) $1400. Citibank is willing to settle for 1400 (after their interest, it's really about 4000 now.) I did not yet attempt validation, procedural proof, a statement of account, etc. This account has been quietly sitting there (no phone calls or mail), is definitely past the SOL, and might even be close to falling off the report with date of last activity sometime in 97 I think. Is 1400 a good offer, or should I not settle for anything less than deletion as part of the clause? I tried over the phone, and after speaking to 1 rep and 2 managers, they said no. I'd feel morally better to pay, but I also need to look out for ME, after all the trouble I've had with credit these past years. RMA (former Sears account) is more of the same, but their "customer service" is the worst. I've had it out with them via phone twice, as they are a bunch of pricks. They (accurately, I think) claim they bought my 2400 debt and it is now 3000. I requested detailed info on the account (mainly so I can learn the DOLA/DLA and how much interest and penalty was tacked on by these #$%^s), and they say they sent me my requested info. Twice. (Yeah right -- you mean that brief letter stating how much I owe them? C'mon!) Anyway, seems like I need to send them a request for validation, CRRR. Also worthy of note, I think they RE-AGED the listing on my CR, possibly twice. And of course, they report to the CRAs that "customer cannot be found", but that's a joke because they always start the phone conversation by verifying my current information with me, (right after they spout off their legal mumbo-jumbo "all information we gather will be used for the sole purposes of collecting a debt, this is an attempt to collect a debt, blah blah." BTW, I wonder how many recorded conversations they maintain in their records for each account?) Anyway, they refuse to settle for a deletion. I'd like to get them on multiple reaging, but I don't know how strong that violation holds in SCC? I'm wondering how close my Sears account is to the 7 yrs. It's also past SOL. It went to collection in 99, but isn't the date that <I>actually</I> matters (against the 7 yrs) the first non-payment that led up to the delinquent status, plus 180 days? I'd like to tell them to shove it up their %^& because the debt is uncollectable and soon to be gone from my CR. But if I should proceed with a validation request anyway, I guess that's what I'll do. Also, when I get my GC back, should I send the dispute to the CRAs? How will that affect my mortgage applications? How do you advise on the re-age? I think I can dig up some old credit reports to compare. Both Sears and RMA are listed on my CR, which makes it look even worse, because it's really just the same debt appearing twice. Should I attack Sears 1st so RMA drops too, or just go after RMA and have it cascade to Sears? Or should I have the 3 CRAs validate instead? I've also considered a free 30-minute lawyer consultation (to see if the re-age goes anywhere), and I'm expecting to meet with a realty mortgage guy for additional advice (it appears that I won't get ANY mortgage with pending collection activity :-( But these forums seem to be packed with truth in practice and not just in theory, so here I am. Any advice is appreciated. I could really use to save my $ for a downpayment, instead of forking it over and not helping my credit while doing so. Sorry for being long-winded. Trust me, the experience was even longer. Thanks in advance! -Ernie
Firstly, I'm fairly new myself but I'll give you my take on things. I could be wrong on this so be sure to get some advice from several sources. Firstly, double check to make sure the debt has passed the SOL. This helps because they can't sue you for the money. This gives you some bargaining leverage if you intend to settle. Secondly, settling for $1400 from a $4000 debt sounds good to me, however, be sure to get it in writing (search the boards here for more info on this) and also make sure they accept nothing less than removal of the derog from your credit reports as a condition (a listing such as just "paid" also works...but again, do some searches for more cases like this). I'm sure there are some sample settlement letters out there that you could modify and send to them. Yup, validate and don't waste time talking to the CA on the phone. You can always fire off some validation letters to the OC's and see what happens. They may or may not have to validate depending on what state you live in. From my understanding, even if Sears did remove the derog, the CA mark will probably not move. You'll most likely have to go after them both independently. I'd start with validation letters the CA's and CRA's. If that doesn't work, perhaps offering settlements to the OC's that include complete removal of the derogs from you report might work. As a last resort, you may want to consider a restrictive endorsement if your state allows them (again, do some searches about that topic here on the boards). The bad thing about this is even if they cash the endorsement, you most likely will have to take them to court to enforce it. That's my take on this, but again, I'm fairly new myself and could be wrong. Hope this helps.
Thanks a ton, BlakMajix! I appreciate you taking the time to reply. This is just too much stress. I guess we all feel the same. Anyway, I live in Pennsylvania, where SOL is 4 years. At least I'm well beyond that mark But I wish the 7 yrs would come around sooner. Will validation (with detailed listing of last activity) help me figure out when I can expect these listings to fall off the report? IS there a danger of the listing coming back if another CA buys it? I'll have to learn more about restrictive endorsements (I think that's when you include a clause in the "memo" area mentioning your stipulations on the back.) I have to use all the leverage I have!!! BUT, I also need to buy a house for my wife and kid in the next 3 or 4 months. (It's not fair for them -- we're all living with my parents for now. All thanks to bad credit.) I have a "Validation 1" ready to be notarized and then sent to CA 1 (RMA). I suppose I should send the same to the CRAs too. And it's a shame about the fact that I just might have to fight Sears and RMA independent of each other!!! Wow, that's bad news to me. Oh well... my perspective: you might not like your shoes, and you might wish you were in someone else's -- but there's always someone who'd swap with yours in a heartbeat ;-) Good luck, all. I'll keep you updated on mine. -EC
Whoa. Don't send anything to anybody yet. You aren't ready as you need to do some reading first. Don't send the same letter to the cra's that you would send to the ca's or oc's. There is a difference between a ca validating a debt and a cra verifying an entry on your report. You need to read the FCRA and FDCPA as well as the the first 3 or 4 threads stuck to the top of the list. Links to the FTC rules are in those threads. Also, do a search or 2 here for "validation" and "verification". Any more questions, ask away. Oh also, settling for paid from a ca on your report will not help your score a single point. The only acceptable listing from a ca is one that is deleted.
Also, do a search or 2 here for"validation" and "verification". =========================== And click on this link ~~~ """""""""""""""""""""""""""""""""""""""""""""""""" What Is Validation? http://consumers.creditnet.com/stra...ht= validation
Ok... got it. Well, I'm down to one derogatory account now But, that's still a problem, because it is being reported by the OC and the CA, so it appears twice as reinforcement that I have a bad debt. Sears reports 0 balance "sold/transfered collection", and RMA reports 2400 or so and.... get ready to laugh... "unable to locate customer." Here's my plan of approach: I'm aiming straight at the 3 CRAs with a dispute where they appear, in the format that they appear. This is my first dispute in over 2 years (long before I bumped into this wonderful site), so I'm banking on bypassing their "he's working with a credit repair company" radar. I intend to notarize/CRRR 3 dispute letters tailored from the samples to each burearu. I will send them out Thurs or Fri, depending on my last minute decisions. (I really need to play this move carefully... stalemate is not in my best interest.) I plan to dispute as NOT MINE. I'm wondering if it will help to mention that the TLs in question were likely mixed up with my father's credit report (he and I share same name.) Or should I use that in my next attempt if they validate? Or is that not a good idea at all because maybe they get my dad's CR involved? I'm thinking the benefit is this makes my letter that much more personalized from a boiler plate letter. Also, if derog TLs get taken off my report, can I expect they will never re-appear? (I've read that OC/CAs can keep reporting it, but I can follow up with a letter to have it removed by CRA, and this process can continue until 7 yrs are up from DOLA.) Your answers are appreciated in advance. ps: I consulted with a lawyer today regarding my best credit options moving forward -- his 60-minute advice was useless. Except he told a good story or two. But this was not my purpose for my visit. Granted he wasn't a consumer lawyer, but you're better off on your own. Cheaper and you're in control of your own journey. As long as you have access to useful resources, for example some good online forums.
I like her ideas. I am going to go out on a limb and try this with Discover and WFNNB/Express. I only pray that I can get rid of discover without a knock down drag out.
PS Read this thread and check out the links. Click here: CREDITNET | Straight Talk | | Validation Must Reads!!! http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=337677#post337677
1*Here's my plan of approach: I'm aiming straight at the 3 CRAs with a dispute where they appear, in the format that they appear I intend to notarize/CRRR 3 dispute letters tailored from the samples to each bureau. I will send them out Thurs or Fri, depending on my last minute decisions. (I really need to play this move carefully... 2*I'm wondering if it will help to mention that the TLs in question were likely mixed up with my father's credit report (he and I share same name.) Or should I use that in my next attempt if they validate? Or is that not a good idea at all because maybe they get my dad's CR involved? 3*I'm thinking the benefit is this makes my letter that much more personalized from a boiler plate letter. ernie_j_c ========== 1*Wrong approach: This is the cart. Where's the horse? 2*Why screw your dads reports fixing yours? 3*Don't worry about boiler plate letters. Let them worry about that while you nail their hide to the wall with the law. THE END ** *** ** LB 59
You folks are the best. I've decided to hold off for a little to thoroughly soak in this new information. There is much to know, and sequence/timing are crucial -- so I'm willing to take as much preparatory time necessary to hit this mark accurately. After all, Sears+RMA is my last delinquent account, and if I can get this purged, there's no telling where my EQ 617 will take off to! (My 2nd delinquent account I was able to negotiate deletion may take a month to reflect in my CR. More on that later, after I've confirmed the results.) Thanks again friends. I will be back with an update.
Ok, here's an update to my journey, along with a couple of new questions. First, Citibank (C/O #1 of 2 total) is hopefully behind me for now -- they were paid, and I hope for them to fall off my CR in about 30 days. (I took a leap of faith on a verbal agreement from the CA, which is normally not advised, but I felt good on this one. It was a significant $ deal, plus I weighed the consequences of their possible lie, and it was still a good deal to me. My gut instinct to actually trust this CA was largely due to the professionalism of our discussions throughout the entire process -- their approach to me as the customer was much different than most other CAs I've dealt with, so I will give them a chance to keep their word. They promised to not respond to my dispute with the CRA, and by default the account would have to be removed. I will let you know how this goes.) Now, on the other critical C/O: Sears/RMA. Two weeks ago, I sent RMA (the CA for Sears) their first Validation. GC came back 3 or 4 days ago. Heard nothing from them yet. Now, I'm licking the envelope for the corresponding Dispute to all 3 major CRAs. Hopefully, RMA won't be able to validate, and Sears will fall asleep as well. If they surpass 30 days, I guess I'm a lucky man Unlikely though... gotta expect the worst. Question: Is it a mistake to dispute both the CA and the OC TLs in the same CRA dispute letter? Should I only mention the CA, and then deal with the OC later? Remember, I'm dealing with Sears, who seems to have an electronic auto-validate process with their buddy CRAs. The sooner I get this final TL combo resolved, the better -- I need to buy a house within the next 3 months. My family can't really afford to wait any longer; our current living arrangement is a bad situation. Question: Once these last derogs enter "dispute" status on my CR, is that the ideal time to apply for a mortgage? How much estimated time do I have to work with here? TIA folks... CN is the best!
