First post, so be kind to me. I have attempted to read the FAQ's, and have a general understanding of the process of validation, etc. However, I am a bit confused as to everything might apply this our situation. Fiancee and I are getting married in July. Due to financial irresponsibility in her past, she has approximately $5K in past due debt/judgments. We don't want to neccesariliy avoid paying what's owed-just try (at the least) to reduce the amounts to what they might have been pre-interest/fees. There are four marks on her credit report: 1. $1057 owed to a Collection agency that obtained a judgment 5 years ago. Judgement is now final. From an original department store credit card, the original balance of less than $500 has grown with fees and 13% interest (Yikes!) to the current $1057. They have a garnish on her state tax refunds but not on her wages. Debt agency refuses to negotiate amount since they say "they will eventually get it anyways through garnishing of taxes". And why not-they can collect 13% interest until then. They also say, since she did not dispute the judgement within 30 days, and it's final, they don't have abide by requests like validation of the debt. Any advice here? Would it just be best to pay this one off completely? I've researched collection law in Michigan and because of the dates, the interest rate is valid and the judgement will not "fall off" or go away as it might it other states. 2. $1468 owed to Capital One Credit Card. Originally opened 1/2000. Recently (September) "charged off", I have a feeling a collection agency will come calling soon for it so we'd like to try and negotiate the amount owed down. on't know. What's is the best way to do this? We only have a P.O. Box, and a 16 digit account number with the last 4 digits X'd out, from her credit report. Do we just write the P.O. Box, saying we want to pay the amount down? What is a reasonable amount to offer? I don't see anything like that in the sample letter forum. Or maybe send a validation letter? 3. $122 owed to a collection agency from what she thinks was a victorias secret credit card. We have the liquid cash to just pay this off. What do I do to ensure it's removed from her credit report? 4. The biggie. $2648, owed to a Collection agency, from when she skipped out on an apartment lease. She has no memory or records of what the actual amount she skipped out on was (to see how much interest and fees have been tacked on). Similar to #2, What's the best way to start here? A validation letter? We are somewhat scared that since they havent' bothered us yet, if we ask for discount/ validation, they will come after us. I'm sorry if my questions are repetitive to others. I have done my best to search to try and find my answers, so keep the replies nice please!
Also, is the collection agency who owns my judgement have to adhere to the FDCP in responding to a validation letter to prove the debt, since there was a court judgement?
1) Pay the judgment. They can garnish her pay. 2) Keep paying on it. 3) DV the collection agency just to make sure it's what she thinks it is. 4) DV the collection agency. Make sure you know the state laws regarding security deposits, etc. and if all that was properly done. By being extra mean to a CA over this precise issue (I was NEVER given any notification of what was supposedly owed or any accounting of my security deposit), the CA went away. My amount supposedly owing was much smaller, though. So, here's the question I have for you. Why marry someone who has such recent fiscal irresponsibility? She doesn't even remember her financial commitments? Someone who's got their head that far in the sand, well, that's a bad sign about their readiness as a marriage partner. Don't get me wrong, it can work, it's just a warning sign.
1. Yeah, they can garnish her pay, but that's nothing. She's a waitress, and her check's are often $0, and if not, $20. They have already garnished her state taxes for 2005...but that wasn't much either. We have no problem paying, just want to figure out how to negotiate with the company, because the $500 original debt ballooned to over $1300 with their fees. 2. You say "keep paying on it". Well, she's not BEEN paying on it. We have not recieved contact from them either. 3.,4. OK, will do. Additionally, there is a judgement for the apartment complex too. She has changed her ways. I don't feel the need to explain how...but it's 7 years in her past. She was 18. She's a lot more mature now and wants to settle her past wrongs.
Then ask for an accounting of the fees. It's a form of DV. 13% interest -- I assume that's the legal amount of interest in your state. Ahhh. Well, it's better to call up Cap1 and try to make arrangements than wait for a CA (which would be a second negative tradeline to deal with). Fair enough, but it sounded like she hadn't given that #2 seemed like a recent chargeoff. That's all I meant. Obviously, you know her better.
I guess I should have clarified. She original account was past due nearly 7 years ago, Capital One just recently "charged-off" $600-odd of the $1400 balance.
Also, I'm being told from people on other forums that paying past due accounts (the ones that do not have judgements) will "re-age" the 7 year term that stuff can stay on her credit report. Is that true? "Then ask for an accounting of the fees. " I did. It seems legit, unfortunately. They just don't want to budge on the amount because they know they can keep adding court fees, garnish fees, 13% interest forever and renew the judgement when it comes round to expiring.
