Hello folks, First time poster looking for a little help. Before I started reading this board, I decided to settle a GE Capital account. I thought the derogatory information would be removed from my credit file based on my discussion with the collection agency and based on the following letter. I'm wondering how all of you interpret this letter - does it mean that they will change to "paid in full" or delete completely? Dear... As an authorized representative of GECC AUTO FINANCIAL SERVICES, Automated Collection Technoloiges, Inc. will accept $XXX as full and final settlement on the above referenced account. No further funds will be due. This offer will be extended through 3/31/04 after which time the full balance will be due to avoid further action. In addition, all derogatory credit information regarding this account will be updated. Please allow (90) days for credit information to be updated. Sincerely, Collector I managed to get a settlement in monthly installments with the last payment on 3/31/04. Should I just wait it out and see what happens or is there something else I should do to make sure it is deleted from my file? Thanks in advance.
A collection account, even if it is updated to "Paid", or "Paid as agreed" or "settled" is still negative and a score killer. You MUST get rid of this tradeline altogether from your reports. If you are ready to pay, send a counter offer to those guys to promise deletion in writing. Otherwise don't pay. Make sure you refer to this debt in your letter as "alleged debt" everywhere in your letter, and never admit it to being yours. At the same time, ask for proof that this debt is yours, and ask them to explain how they arrived at the figure of alleged debt. This is called "Validation Letter". Look in the Sample Letters section on this board, as well as read the top 4 or 5 "sticky" posts about approaches to deal with a collection agency. Also, they are saying that they are the authorized representatives of GECC; ask them to provide you proof of that assertion, since you don't know that you'd be paying the 'alleged debt' to the correct person. What's to prevent them from selling the balance on the account ? Best of luck.
My fault Lakpr - I didn't make it clear in my earlier post but I've already started paying the debt three months ago since, at the time, I interpreted the letter to mean that they would "update the derogatory information" by removing the tradeline. Since I'm now two months away from settling the account, and have already paid close to $3,000 of a $5,000 settlement for a $19,000 collection, my question is whether I should go ahead and complete the settlement or do I take another approach? My concerns are the following: 1) If I try asking for validation or proceed via any of the other dispute routes, it may result in losing the settlement offer. I'll be out of the money already paid, and may have to pay the entire amount (if it ever comes to that in the future via a judgement). 2) If I complete the settlement and they do report it as "Paid in full" or "paid collection", what options do I have besides the estoppel/nutcase letters, which from what I've heard, are less effective than other methods? On the other hand, I do not have the threat of a potential judgement and can nag GE to my wits end without fear of any judgements. I suppose I could write a letter asking for clarification - and if they say they'll update to paid in full or paid collection - what do I do next? Sorry for being long-winded but I'm trying to give you the best insight into my situation and thought process. -MJ
Re: Re: Please review letter from GECC A collection account, even if it is updated to "Paid as agreed" is still negative and a score killer. -- lakpr ><- <>- ><- <> There is no such thing as a paid as agreed collection.
Re: Re: Please review letter from GECC This is what you wanted to happen They only promised you to "update derogatory information" That does not sound like they were going to delete it!
Manosh, Even if you paid, you never lose the right to demand validation from the collection agency. Says so right there in the FDCPA. So send the validation letter to the collection agency. And regards paying or continuing to pay, it depends upon if you have that agreement in WRITING. If you don't, stop payment; if you do, since you are only 2 more payments away, go ahead make them (if only to more effectively pursue the nutcase series) That'd force the CA to provide proper validation. And they cannot continue collection efforts without providing validation. Verification with a bureau that this debt is yours can be construed as continuation of collection efforts. So validate with the CA, and simultaneously, dispute the tradeline with the CRA. You are likely to get some violations from the CA; use those violations to sue them, and settle for deletion. Alternately, you can follow the nutcase series.
Re: Re: Please review letter from GECC So, let me get this straight - I should 1) Pay off the debt since I only have two more payments. 2) See how they are reporting the tradeline and if they report as paid in full or paid collection I should request validation from the CA via CMRR. 3) Wait to receive green card and send off a dispute to the CRAs 4) If no response from CA, and verified with CRA, then mail another letter to CRA saying "CA can't validate so how can you (CRA) verify?" (forgot the name of this letter) 5) Proceed to nutcase series if I have no success with the above. Is this right?
Re: Re: Re: Please review letter from GECC Excellent, that's exactly what I am suggesting. Except that, I'd not wait to send the validation letter until the payments are all made. Take this initial step now, but subsequent steps like estoppel and ITS are to be made after all payments are made. This'd prevent the CA from updating the tradeline at the bureau in anyway until they provided you full validation, and you also have a "breach of contract" (they did not update as positive, did they?) You are going to paint the CA in a corner where they are damned if they do, damned if they don't
