Credit Repair: Please Read My Story

I just discovered this board and I feel like I've found the perfect home. I would like to take this opportunity to share my story of how I managed to take on the CRAs, creditors, and collection
agencies and win and offer any free advice to anyone who might need it.

It all started in 4/99. There were three credit cards in my name (Discover, Citibank, and Associates) that I may or may not have opened along with a student loan with First Union. The credit limit had been maxed out on all the cards and I just lost my job. With no income, I just said to hell with it and forgot about paying any of them for about eight months. Not a smart
thing to do but nonetheless, it has made me a smarter consumer.

I finally decided to wise up and take control of my finances around 12/99. I got a hold of my 3 credit reports for free (after about 15 reports altogether, I have yet to pay for a single report). The damage was done. The 3 cards were charged off and the student loan was about to go into default. At first, I thought of going to a credit repair firm. I even checked into Lexington Law Firm which I still get junk mail from. At one time I even considered going to AmeriDebt or CCCS (never do this unless you absolutely have to). I also looked for credit repair guides online. Ironically, all these companies offer you services or information for credit repair yet they ask for payment with credit cards. Then I thought I could do a little research, trial and error, and try it on my own. This was the best decision I have made to date. I searched the web, looked at books, and tried to find all the free information I could on anything involving credit, credit repair, disputes, CRAs, banks, collections, and consumer laws namely the Fair Credit Reporting Act, Fair Debt Collection Practices Act, and Fair Credit Billing Act.

I went to work and disputed what I could with the credit bureaus in 2/00. I first settled with Associates. Their account was sent to a collector, Viking Collections, who quickly took my settlement offer of 50% of the balance of $1100 which probably best represented the original balance of $500 before eight months of late fees, finance charges, and over-the-limit fees (this is how the banks really rob you). After getting written confirmation, I paid. Apparently, my first dispute with both Equifax and Experian removed this account shortly before I even paid. After that, It was removed by Trans Union without even disputing it all in a month's time.

Around the same time, I tried disputing all the 90+, 120+ past due statuses of my student loan with First Union. Initially, Experian and Equifax refused to remove it. I then went to my lender and filed a forbearance due to economic hardship for a period of 12 months beginning the date before my payments were initially late. I got a letter confirming this and sent it to Equifax and Experian who removed the entire account within days. Again, Trans Union removed this account without a dispute from me. All this was done by 3/00.

Around 3/00, I also got a secured card from Direct Merchants Bank with a small deposit of $100 and a credit limit of $500. Since then they have changed me to gold status, raise my limit to $1000, and return my deposit.

By 4/00, I took on Citibank. My account was referred to OSI Collections (one pretty pathetic company). They wouldn't take my initial settlement of 50% and to get this taken care of quickly, I accepted a 60% settlement. Here's the great part. I got a confirmation letter with this offer to be paid by a certain date in 5/00. I waited for a day before that date and called OSI up before I sent payment to confirm everything. Apparently according to their computers the offer had expired several days before and now they wanted 70%, an extra $150 on my part. Due to a clerical error by one of their ignorant clerks, they had posted the wrong due date on my confirmation letter. I had to talk to a supervisor who still tried to get me to pay the extra
$150 but he had to accept the settlement of 60% because I had it all in writing. He told me OSI would have to pay for the extra lost because they had reported a settlement of 70% to Citibank. I was overjoyed to know that this greedy collection agency ended up losing money without gaining anything on my account. This is why it is always important to get all settlement agreements in writing. Shortly after that, I disputed my Citibank account with all three CRAs and got it removed by 6/00. In 3/01, Citibank reinserted the account in my Equifax file. I disputed it directly with them as a fraudulent account and asked them for a signed contract (which most likely never existed). They have since removed it and have given me a letter confirming the fraudulent claim.

This brings me to my biggest headache, Discover. I managed to successfully dispute this account as a fraudulent account with Trans Union and Experian whom have both removed it. Most of the charges on this account weren't even made by me. Equifax kept verifying it and wouldn't remove it. I have tried about 7 times in the past 18 months with no success. In 6/00, Discover sold it to First Select (a collection company owned by Providian). I sent a dispute letter to them in 6/00 asking for written verification (mainly anything with my signature on it). All they sent me were billing statements. They gave up collecting after that. I sent three dispute letters to Discover whom was the only one reporting this account to Equifax. I finally called them this month and they told me they couldn't change anything on the account even if it was fraudulent and that I had to contact First Select in order to delete this account even though they were the one reporting it . I called First Select who finally confirmed my fraudulent claim and dispute letter a year and 2 months after I sent it and they told me it would be corrected. I also sent another dispute letter to them asking them for any real verification. Hopefully, this will be resolved within a month. If
not, its off to court against Discover and Equifax whom both can't and will not provide any real verification.

I also had a Chase Bank card account with a $7500 debt that first appeared in my Trans Union file and has since popped up again as a collection account with North American Capital Services. Apparently, to no knowledge of myself, this account was opened with my SSN when I was only 16 years old. That's good grounds to invalidate any debt. Looking for a good challenge, I contacted NACS and got transferred again and again before finally getting transferred to antother collection
agency who bought the debt. I called them and got hugged up 3 times after continuously being transferred. I really got peaved when I finally talked to a guy who wouldn't even listen to a word I had to say. All he told me was that I needed to talk to an attorney and then he promptly hung up on me without giving me a chance to respond. I was so mad, I called back, got an address, drafted a damn good letter laying it on pretty thick, and sent it certified/return receipt that night.

I now I finally come to the one bureau everyone loves to hate, Chexsytems. Apparently, there was an account in my name opened in 9/98 that was overdrafted about $2500 with Nationsbank (now Bank of America). I was reported to Chexsystems in 1/99. I disputed with Chexsystems about 3 times with no success. I knew for sure Bank of America had no notary signature card on file for this account. I finally went to Bank of America who only sent me statements after 90 days and a phone call (which why it is always good to dispute by letter). I then sent a notarized letter claiming fraud and they quickly removed it from Chexsystems.

I now have a clean report with Experian, Trans Union, and Chexsystems. I am almost there with Equifax. I also have a good bank account with a credit union and two additional credit cards with Getsmart(Providian) and Capital One (who is real stingy about credit limits and reporting my credit limit).

Through my whole experience, I have managed to become very well informed on everything about this subject. I repaired all of my mom's 3 credit reports with just 1 dispute to each CRA, all in 30 days. She had about 6 really bad accounts on each of her files mainly due to another family member. After my help, she managed to get two different car loans at the same time as well as double some of her credit limits. I'm about to start on my dad's credit who has the worst credit known to man (he has about 10 charge offs in each of his reports). The best part is that all of this has cost me nothing but the money I have spent on certified mail/ return receipt.

I hope this has been helpful to some of you and if you have any questions please feel free to email me emaestr@hotmail.com. I would like everyone to get as well informed as I have and I will continue to post my progress as I continue the fight.

 

Re: Credit Repair: Please Read My S

Thanks for the reply roni.

Knowledge is power. Now if we can get everyone in America with credit problems to get informed and learn how to take on the CRAs, creditors, and collection agencies then the CRAs, creditors, and collection agencies will be defenseless against all the empowered consumers.

eman

 

Re: Credit Repair: Please Read My S

Well Bill, My basis with my fraud claims were that I never entered into a contract with or opened an account with some of those creditors. In most cases, I never signed any contract or agreement with some of those creditors. The burden of proof was on them. They have to produce my signature on a contract to validate the accounts and they could not do that. In truth, the accounts I may have had some responsibility for (which I never admitted to) were paid and deleted and the ones I knew for sure that I had nothing to do with were unpaid and disputed as fraud. The fact is that many creditors are sloppy record keepers and fail to keep a signed application or contract on file (especially when the account may have been opened over the phone or online).

 

Re: Credit Repair: Please Read My S

Sounds like you have some pretty tough judges out in the midwest

Thanks for the support Bill. From what you've posted on the boards, it means a lot.

 

Re: Credit Repair: Please Read My S

Well I live in Atlanta, GA, home of the infamous Equifax Company. They just built a flashy new HQ downtown (payed by the misery of others).

Georgia can be a bit conservative at times (Credit repair firms are illeagal here) but can also be consumer friendly (GA is the only state that grants consumers two free credit reports from each CRA every year). Now that's a right every American should have.