I have just found out about a collection acct my husband has outstanding from 1997. Its a phone bill from when he was in the Marines. It is for almost 900.00, unpaid. It only shows on Trans Union, and thats the one credit report we havent been pulling, so we didnt know it was there. Yesterday I called the collection agency, I want proof that the bill is his, they refuse to show an itemized stmt , the guy told me that we werent worth it because this debt has beeen unpaid for almost 5 years. He also said they refuse to take less. the most they can knock off is 19.00 interest that this bill has accrued. We wanted to try qualifying for our house in Feb, but I know that this unpaid collection will stop us from qualifying. How do I get them to accept less, or how do I try to get them to delete it if we pay? We have al;ready disputed it thru trans union, and it came back as verified. What next? Its not like we just have 900.00 to throw away like this. Going back in my husbands old records, I found one stmt that had calls on it from a date after he already moved from the barracks. his old roommate was making international calls to his girlfriend, and of course this guy is nowhere to be found. But the phone was in my husbands name, and he is now responsible. Help please.
You could try disputing it. Also, if you're applying for an FHA mortgage, they may not consider it since it is over their standard 24 month review. Whatever you do, DON'T mention to the collection company that you're looking to buy a house, because they'll view you as desparate, and won't negotiate. I think you should try and speak to another representative to see if you can negotiate. Good luck, and don't worry. If this is the only thing bad on your report, You'll get your house.
First, I would communicate w/ the collection agency only in writing, return receipt. Instruct them to do the same w/ you. Verbal agreements to anything are not as reliable as you need them to be, Second, have you sent them a validation letter for this? That is where I would start.
I have disputed it, and it came back as verified as correct. As far as a validiation letter, they wont send me anything, they said its not worth their time because of the age. I just didnt know how I can get them to work with me, Ive never had to deal with this before. The guy I spoke to was really rude. I havent mentioned anything about the house. I dont mind paying the whole thing if they'll delete it, but I gues that mauy be asking too much. We are going VA with the house. This is not a new debt, like in the past 24 mos. it originated from 97. When we pay it, does that renew the date of last activity? Jamee
Aren't they required by LAW to validate the debt? As far as the whole CRA / last activity date thing, I believe the law now says 180 days after the original late payment that started the collection effort. Although this date went into effect some time in 97, so you may be under that definition. However, (correct me if I'm wrong) I believe the CRAs more or less honor that even for accounts before 97. CJD
Hold on a second. Did you say VA loan? They have essentially the same guidelines as FHA. They want to see a clean history in the past 24 months. I doubt this would cause any problem at all. Check to be certain and then forget about it.
Uh, hold the phone. You're HOPING they won't send you anything, which will give you legal ground to go after them more actively. You need to search this board (using the search function at bottom) for "validation letter"... Read up, put one together, and send it. They are then REQUIRED BY LAW to document how it is that you owe this. If they don't do that, then other laws (search under the peculiar word "estoppel") REQUIRE them to stop collecting and to remove such claims from your credit bureau reports. To summarize, OF COURSE the guy is going to say "it's no use -- you're not worth validating" if you flat-out tell him that you are considering asking for validation. LOL! Your request for validation, followed up by your demand for estoppel, is the last thing they want to deal with. Good luck with this. I have a feeling that you will prevail. Doc
If they refuse to Validate the debt, then go to the next step. Send them an estoppel letter (start with one of the templates up front). When they don't respond to that, send copies of both letters and the Certified Return Receipts to TU and demand deletion. Again, templates for all this can be found up front.
Here is a good chance to learn from my mistakes. I recently went through something similar. The credit reporting agency will only call the collection agency who will verify the debt. After all, they have your husbands name. So the CRA is useless. The collection agency only wants their money. They are playing hardball. It is useless to deal with them on the phone. They always lie. What you must do is send the CA a validation letter. Don't just say prove he owes the debt - that will only get you a letter back saying we have his name - it must be him. You must ask for specifics - a signed contract, proof the calls were made, etc. Be very specific. I found out that frequently companies do not keep records over two years. I can almost bet they don't have anything on your huband from that far back. If they can't validate, they have to remove it. Only when I did this did they remove it from my reports. They could not prove the debt. Use the Lizardking validation letter. It works. Just be specific. The other advice above is real good - don't deal with them on the phone and don't let on you are buying a house.
