I have a ton of derogatory marks on my credit record. I haven't made a single payment since 1997 or so. There are numerous 30,60,90 day late payments and multiple chargeoffs listed as well. I am a resident in CA. The SOL is 4 years from my understanding? Now, what are my options? I read previously in Marie's post that at this point there is no point in doing a "validation". I believe that I should do a "not mine" with the CRA? Is this correct? So this means I don't need to contact the collection agencies at all? There is one collection agency that has been persuing the debts lately.. NCO has bought out 3 of my old credit card debts and now the total they are asking for is $17k. The original total before they bought was $14k. They said they are willing to settle for $6.5k. Is there any reason to talk to them at all? I told them to send some proof or breakdown of what I owe them in the mail.. I recently received a statement listing the 3 cards and the total of $17k. I also recall judgements being an issue when dealing with credit/collection, etc. Now, the only judgement that I am aware of happened with NCA, another collection agency. The original debt was around 800, plus interest came to 1300 or so is what I owed the creditor. The collection agency demanded I pay them $3200 after receiving judgement against me. Back then, in 1997 I didn't know what a summons meant or anything legalwise.. anyhow, I ended up settling with them for $2500 in a money order. I asked them how this will help my credit.. they told me to dispute this with the CRA and they wouldn't respond and it would fall off my record. Thus, that's the only judgement that I am aware of.. now, my question: how does the SOL affect me? Does this mean I don't deal with the collection agencies any longer? Also, can the address deal benefit me at all? I am now living back in my parents' house.. my permanent address for the past 20 years or so.. the credit problems happened when I was away in college. During my stay in college, this is how I lived during the years.. Year 1: School Housing (sept-aug) Year 2: Apt A (sept-aug) Year 3: Apt B (sept-aug) Year 4-5: Rented a House (sept-aug) Final Year: (sept-dec, then sublet) 3 months: new temp apt location Current: residence @ parents' house (same as before I went to college) Is there any way I can dispute regarding address/place of residence? Now, I wanted to also make clear that I am not trying to avoid the responsibility of paying debt.. I have no problem with settling the accounts, yet at the same time I do want to clean my credit as well. I am looking for the most quickest way and best way in having spotless credit again.. I want to have all negative marks removed and only the positive remaining. As for positives, I have the following going for me: 1) Mechanics Bank: never a late payment for car loan, all paid off 2) AmEx Corporate Card: never late payment (have had for 1 year) 3) Joint Account: never late payment (1 year) With all the following information given above.. what to do first? I am now in the process of obtaining all 3 credit reports so I can have something current to look at and know what I am facing.. thanks again for everything and I look forward to any advice or help you can provide Marie or anyone else!
did the other advice help Didn't we talk about some of this already? I'm confused as to what help you need right now. First, get the reports. The sol pertains to them being able to get a lawsuit on you. Looks like collection agencies ignore sol and try to collect... but I thought you were going to lay low until the sol definitely ran out. And I actually said you might want to do a validation... but it if the sol hasn't completely run out then you might prompt them to file a lawsuit before it does. You can always negotiate a settlement but really, if the sol is up, you're only paying for the derog credit removal. other than hurting your credit, and bugging you (which you could end w/a C&D), they have no real power b/c they can't sue if the sol is up. They can keep their line on your reports unless you force a removal, or unless the CRAs can't verify. I do agree that, if you find this too much to handle on your own, carreon and associates is very good at negotiating settlements for people. Sorry I didn't respond earlier, thought it was a mistake post since we'd addressed most of this before. Get your reports so you know what you're dealing with. You can always dispute directly w/the CRAs at any time. I think you really should read the Kielsky info on credit repair that I posted before. I read it 3 times before doing anything. It explained the basic process, why we do things, how to do things.. it was a lifesaver.
RE: did the other advice help So if I know the SOL has run out, the only reason I need to talk to the collection agencies is if they will remove the lines in the credit report? Thus, at this point I should only deal with the CRA and dispute and say "not mine" ? No reason to do a validation w/ the collection agencies because that won't solve anything.. is this the correct step? Thanks again..
yep You've got it. 1. Get your credit reports. See what they say. 2. Dispute w/CRAs. 3. It may come off. If it doesn't come off your reports: a validation can solve something: it can be used to prove that you don't owe the collection agency aa debt, and it can be used just to remove the credit info too. Here's the idea. To prevent just anybody from saying you owe them money, you have the right to a validation (proof) that you even owe any money. If Proof isn't given to you when you ask for it, or if they don't have proof, then you don't owe the money(legally). If you don't owe the money (legally speaking), then you can have the credit bureau info removed. A validation letter shifts the burden of proof onto them. It's a weapon against them. To start with, see how it goes directly w/the bureaus. It's always the easiest way to get stuff off. But you have to get your reports first... HOpe this helps. Have you read the info yet on credit repair? It will answer a LOT of questions you have. Like I said, I read it at least 3 times, I read EVERY post here and on the yahoo board. I spent a lot of time learning what rights I have. I wish I'd done that 3 years ago.. I paid a lot of stuff I didn't have to. By the way, I think we told you. There's a weird quirk in the system. If this stuff is showing up as an unpaid collection, it DOES NOT help you one bit to pay it and have them change the report to say "paid". A collection listing is a collection listing. And stupidly, you get the same penalty whether or not it's paid. I'd do this, and in this order: 1. try to get it off your reports via CRA diapute 2. Try to get if off your reports by making the collection agency validate... and if they can't remove it from your reports 3. Negotiate a settlement (and I mean a couple of hundred dollars) in exchange for a full removal of all entries to your reports (paying the blackmail). I'd only pay them as a VERY last resort and only if you have an agreement in writing before you pay them. After you pay them, they'll tell you to go to... well, you get the idea.
RE: yep Okay, thanks for the quick response Marie. Once I get the CR, I am debating whether I should do both steps 1 and 2. I am also dealing with NCO, and from checking with previous posts regarding NCO, I see there have been problems dealing with them in the past already. Once I am done with step 1, where I dispute with the CRA saying "not mine", only doing 1-2 items at a time for each CRA.. I'll move onto step 2, where I try and force the collection agencies to validate. When I receive no response (which is most likely what's going to happen), do I then send a letter to the CRA saying there was no response? I don't think they will take any "blackmail" money that low.. at least a few hundred when the debt is around $17k is what they claim (NCO). I have joined the Yahoo group recently and been studying that as well.. thanks again..
My two cents Just my two cents, but I think it's about time we all start reading up everything on this board as well as Yahoo and then asking for help. Remember no answer is 100% full proof and we got our selves into trouble without asking for help so...Sorry if this sounds a bit rude, but I just thought Marie might be tired of being the credit Queen. lol Remember if you look and read, most these answers are on the Yahoo board if not on this board...you just have to take the time to read and learn if you really want to take care of business.
You understand perfectly you've got it. Keep saving money in case there are any other debts that haven't gone stale that you want to negotiate a lump sum settlement. Right now just try directly with the bureaus. By the way, you didn't enter into a contract w/NCO so you can say the debt isn't yours. If you have to do step 2. validation and they don't respond then you have enough ammo to go to the FTC and the state's atty generals office... regardless of what anyone says, if you're going to be a fly in the ointment then NCO will likely cave. NO collection agency wants an investigation. period. This should get it all off your reports. With regards to a settlement... think about it this way. I know you did owe the money originally and out of the goodness of your heart you feel as though you should pay a "fair" amount if you settled. I understand, it's ethics. BUT, legally, all they can do is bug you now and stick stuff on your reports hoping you'll cave in or that you don't know your rights. If you tried everything for the next 5 or so months and you got nowhere... the info was still on your reports... you could really fight them (FTC, atty general, and even in court) because LEGALLY they would have a case. No valid debt=no debt=no entry on your report or their violating your rights. The validation really can save us. BUT, lets say for argument's sake that you did steps 1 and 2, they didn't back down, the stuff was still on your reports... You can basically say, I legally don't owe the debt but I'll pay a small amount to make you go away anyway. I KNOW you can't sue me and I can always send you a cease and desist which means you can't even call me. Why would you pay 40-50 %? They legally can't sue, you can fight at every turn, you aren't rolling over... Do you see. At this point they only can keep it on your reports. But you're right, they probably would be jerks and want a lot of money... which is why you never pay in these situations. A cease and desist will make them quit harassing you (USE only as a last resort)... They can't sue They can't scare you anymore So what can they do????? Put one measly little blip on your report that hurts you just as much paid or unpaid. big deal The ONLY reason you would pay them a dime would be to remove the credit entry entirely... and that would be very silly, really. I'd be as stubborn as you can be and do only steps 1 and 2. Honestly, I appreciate your wanting to pay some. I was in exactly the same place. But these guys are SLIME and likely if you did pay (as a last resort) they wouldn't even hold up their end to remove the trade line. At this point it's just blackmail by NCO. Before the SOL I would've said paying them could be a good tactic, now it's just a waste of money. Let's say worst case scenario is it all stays on your reports despite everything you do (and I doubt it seriously): Unless you want a mortgage, you won't pay six thousand extra in the next few years in interest if you choose creditors wisely. And if you ever applied for a mortgage, you have documentation that the debt isn't yours (via all the validation requests). Mortgage underwriters understand that sometimes incorrect info is still on our reports, despite our best efforts. They'll discount the collection entry b/c of your documentation. So stick to your rights, lets proceed through this with a strategy that's best for you. IT'll start making more sense to you as we progress. By the time you're done you'll be an old pro like we are!!! Then your friends will be asking you lots of questions like mine do! :_)
Hi Marie, I've taken the first step and ordered Equifax online. I also called the other 2 CRA and requested a report. Have you had any luck or know if anyone has had luck doing disputes online? I used the checkbox thing for Equifax that they provide to dispute a judgement in 1998. The collection agency that I settled with this year told me to clear this line this way and they said they would not respond and it would fall off my report. Now I understand what they were referring to. However, I am wondering if this method will be effective with the other items on my record. I disputed the judgement as "not mine" and the following items: 1) coldata, 120+ days past due 2) cavalry investments, LLC as not mine as well. I am wondering how effective this is online and if it is better to do disputes through regular mail. Which would be better or does it make a difference? I am awaiting the delivery of the other two reports and am contemplating whether I should order a physical copy of my Equifax report as well.. Thanks again for everything..
