Here is my situation.. I am looking for any advice and appreciate any that you guys can provide me with. I have had bad debt for about 5 years now. I have about 30-40k worth of debt. The ones I know of offhand include: AmEx Optima Card ($15k) 1 Collection Agency Consolidated 3 of my Cards for a Total of $17k A few Retail Dept Cards: $5k and a few other Credit Cards.. All these cards, I havcen't paid a single cent on since 1997. I am now in the situation where I have income and can make payments and would like to build my credit.. I spoke to the collection agency NCO who has 3 of my debts consolidated into one. They are willing to settle for $6,500. The told me the original debt when they bought it was $14k or so, but now it is at $17k. I am trying to negotiate it for $5k and have 3 payments.. the first month being 1k, the folllowing 2 months for $2k each. Now, my question is what should I do?? How are these credit repair firms such as Lexington? Will they help me? Also, how effective is it to have them.. and how much is the charge usually? AmEx Optima has never contacted me once.. so I am wondering how to settle this out? Does anyone have any sample letters I can write to get the derogatory things removed from my credit reports? My fear is that once I start trying to take care of these debts.. that they will state today's date and the 7 years will begin again.. how do I avoid this? Now, for positive credit marks.. I have the following: 1) Financial Aid Debt ($15k) 2) Car Payments 3) Corporate Credit Card 4) Cosigned Credit Card For the following 4 above, I have had zero late payments and perfect credit.. all my car payments are completed and the other 3 I am paying off and have never been late and havre excellent history.. Any advice is greatly appreciated.. I just need a place to start! thanks in advance and sorry for the long post!
RE: Lexington and other credit Dear Speaker for the Dead, I work with Lexington Law and, if I were in your situation, I would have them handle my settlements. They can typically settle them for 60% or less including their fee. (Many times, it's 50% or less with the fee.) The fee is a percentage of what they save you in the settlement, so you can't lose. I've done many settlements myself, and it's not too difficult. However, having a law firm handle it convinces the creditor that you're right on the edge of bankruptcy. That's the creditors biggest worry - and it's a powerful motivator for them to settle low. Also, the negotiator at Lex has a ton of experience with these creditors, so he'll know what's possible and he'll already have pre-arranged settlement terms with some. With regards to the renewal of the start date of the derogatory: that's no longer legal under the FCRA. They must begin the seven year clock from the date of the FIRST delinquency that initiated the derogatory issue. They shouldn't be able to renew it (other posters on the board will confirm that.) Call 800.341.8441 and ask for Steve Royal, if you decide to have Lex settle for you. Best of luck!
RE: Lexington and other credit Thanks for the response Jason.. One other question I have: While using Junum of Lexington, are there any risks involved? I've heard that if you use the CCC or those credit assistance companies, that these are noted on the account. If I use the help/assistance of junum/lexington, then is it similar as well or is it like hiring an attorney to represent you? Also, what other companies are out there besides junum and lexington? How can I go about comparing these services and which to choose? Thanks again everyone..
RE: Lexington and other credit You basicly have 2 alternatives: 1. Forget about the debt. It will fall off your report within a couple of years (assuming your bad debt is 5 years old). The tradeoff is that you can also forget getting an Amex card ever again. 2. Contact an Amex Centurion Bank account manager to find out your exact balance (no interest would be added), pay'em, get your delinquent Amex tradeline removed from your reports (through their CB unit), and be off their shitlist within a year or less. Tell the account manager you want their contact information so you can get back to them once you pay the debt. Choosing between the options largely depends of the applicable SOL. The common belief of a "4-year-SOL in all states for all purposes" is BS. If the SOL hasn't run out (or if you've done anything to reset it), you're risking a suit for the whole 15 grand plus interest, court costs and attorney fees. These can double/triple the debt easy, place a judgment in your credit files and force you to pay it. The SOL could be your best buddy or your worst enemy. Saar
RE: Lexington and other credit Ender, I have never seen credit repair become a problem. In other words, I'm not aware of any risks. CCCS creates problems, sometimes, because their system makes people late (and sometimes they even report that the person is in debt counseling.) Not a problem with Junum or Lexington. Lexington does nothing to tip the credit bureaus off to the fact that a third party is involved in the dispute. So, it's unlikely that the credit bureaus know that a Lexington client is receiving assistance. I can think of two other credit repair companies of any size: Bradley, Ross, Lanee, Joseph and Allen http://www.bradleyross.com Law Office of Jack Schrold http://www.creditlawyer.com Best of luck!
RE: Lexington and other credit OK. Silly me, Statute of Limitations. I didn't think you were telling him that "S$@#t Out of Luck" was his best buddy.
Saar, please respond I have a paid charge off from AMEX and I have called many times to the credit bureau unit and can not get them to delete it. I have disputed it with all three bureaus four times and no luck. Any sugguestions? Thanks in advance for any help. Jeremy
