I have missed all my obligations since last July. I have now obtained a job that will allow me to pay these back. I owe over 30k in credit cards. My questions are as follows. 1. If they went to collections, does this show on my report negatively twice as in once for original and once for collections? 2. If I workout a payment schedule, can I get it to show on my report as a decent stat and not "charge off"? 3. Can I work directly with these credit card companies and maybe get one card back by paying it? 4. What is the best plan of attack to get my report cleaned up? The companies are: Bank Of America Cap One MBNA CitiBank Thanks all!
The best thing I would suggest is to first order all three of your credit reports separately. www.equifax.com www.transunion.com www.experian.com You need to see who is reporting and how it is being reported, before you can really get an effective plan of action. You want to pay back your creditors, but you also want to minimize the damage to your credit report at the same time. While waiting for the reports, I would suggest reading the INTRO threads at the top of the board. Lots of good information there. Welcome to the board!
1. If they went to collections, does this show on my report negatively twice as in once for original and once for collections? 2. If I workout a payment schedule, can I get it to show on my report as a decent stat and not "charge off"? bigkahuna ------------------------------------ Yep. Depends on the creditors
If they have not yet gone to collections, most of the cc companies have "hardship" programs where they will reduce your interest rates to a reasonable amount, and sometimes waive your late fees, overlimit fees,etc. The ones I have dealt with closed my accounts while I was on the hardship program. I suspect that is what you will find until you prove you are reliable. That may take some time. The suggestion above is right. Get you credit reports and see what they say.
Is replying to my own post like talking to myself? A few more comments. Most of the creditors will tell you they do not have "hardship" programs. You have to call the right people. I have the numbers for the "right people" at MBNA, FirstUSA, and Citi, if you need them. If you do get to that point, they will make you a payment offer. Tell them it is too much. They keep coming down. It is like buying a car. Just say no. Eventually they will not go lower. But, they all come down substantially from their first offer. Except Merrick - you have to apply for their hardship program and they set the terms - no negotiations allowed. They were reasonable though. I posted at Creditboards on my experiences. It might be helpful for you to read those if you decide to follow this option. I sign in there under karentut.
Unfortunately they have gone to collections. This truly sucks, because my credit was very good .. no lates at all for years until my pay went down. Now I can easily afford my bills but they are in collections and I am afraid of what all will happen. Thanks for all the replies! I am working on getting my reports and will post them here when i do.
Unfortunately they have gone to collections. bigkahuna | ======================== Send this letter: Here is the Val Letter you want to send . Don't make any changes on it and don't hand sign it. Your Name Address City State Zip Company Address City State Zip Date RE: Account #_________/Original Creditorâ??s Name Dear Sir/Madame: Thank you for your recent inquiry. This is not a refusal to pay, but a notice that your claim is being disputed. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. Please complete and return the attached disclosure request form. Be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation;" that is, competent evidence that I have some contractual obligation to pay you. You should also be aware that sending unsubstantiated demands for payment through the United States Mail System might constitute mail fraud under federal and state law. You may wish to consult with a competent legal advisor before your next communication with me. Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees. Sincerely, Your Name don't sign - - - Include the following on a separate sheet of paper - - - CREDITOR DISCLOSURE STATEMENT Name and Address of Collector (assignee): _________________________ Name and Address of Debtor: ____________________________________ Account Number(s): ____________________________________________ What are the terms of assignment for this account? You may attach a facsimile of any records relating to such terms. Have any insurance claims been made by any creditor or assignee regarding this account? YES/NO Has the purported balanced of this account been used in any tax deduction claim? YES/NO Please list the particular products or services sold by the collector to the debtor and the dollar amount of each: Upon failure or refusal of collector to validate this collection action, collector agrees to waive all claims against the debtor named herein and pay debtor for all costs and attorney fees involved in defending this collection action. ________________________________ Authorized signature for Collector Date_______/_______/_______ Please return this completed form and attach all assignment or other transfer agreements that would establish your right to collect this debt. Your claim cannot be considered if any portion of this form is not completed and returned with the required documents. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. If you do not respond as required by this law, your claim will not be considered and you may be liable for damages for continued collection efforts. One seperate letter for each collection account. Also read the validation link in my Sig. THE END ** *** ** LB 59
