Hi everyone, Seven months ago I started a program Debt Free. Since that time, payments have been made every month on time and some good things have happened. The interest rates on my Direct Merchant Bank and Citibank credit cards were lowered substationally, and Citibank pulled my account from a collection agency after being contacted by Debt Free. I'm grateful for these positive changes, but now I'm thinking I need to work this on my own, and here is why. Out of five accounts with Debt Free, four of them are still showing "bad debt, chargeoff" status even though they've received regular payments for seven months now. Two of them have notated that the account is now being paid through a consumer credit agency, but other than that, my report still looks pretty gloomy. I talked to Citibank yesterday and was told that they could never change the status since the account went to a collection agency and was also charged off. My three little accounts (all under $500 balance each) have pretty much told me the same thing. So out of five accounts, I am very happy with the status of only one. The other four are simply taking my money and not updating to anything positive, so I'm thinking I need to play hard ball with them. When I contacted Debt Free to tell them I wanted to cancel, they warned me that I might screw things up if I go on my own ... especially with Direct Merchant's Bank, and I sure don't want to do that because DMB is really the only account that has been totally cooperative (re-aging, interest dropped very low, and they are now reporting a current status on my reports). Is Debt Free just jerking my chain? Why should DMB care where the money comes from just as long as they are paid? Should I pull out of Debt Free and start applying the $39 monthly fee towards bills? Should I start playing hardball with these four deadbeat accounts? If so, what is my first move? Is it even possible to get tough at this point since I've been paying regularly? Has anyone been successful with Citibank (two of the accounts are through them)? They seem so stubborn! I'm so confused .... Thanks so much for the input. It is much appreciated.
Hi Spiderella, Welcome to the board. At this late stage of the game I believe trying to back out now would be more to your disadvantage. Sounds like you're almost ready to pay it off and move on. Just because an OC "says" they can't change a TL, doesn't mean it's true. Once these accounts are paid off and closed we can attack the situation form a new angle. That of insisting they correct their incorrect reporting errors. Quite often, in fact, it's easier to deal with a PD. and closed account than it is one which still has a balance. .
I completely agree. At one point I looked into using a CCC link Debt free... I didn't but I wish I had because I would have had less trouble in the long run. Pay off your debts first then tackle the nitty gritty elements later. It's is not Debt Free's fault that the status has no changed. Even if you were paying them off yourself, they have no reason to change the status for 7 years in their eyes, which is as long as they can keep a bad mark on your report if they really want to (the good thing is a lot of them don't care to keep the records that long). They can do this even if you continue to pay and are in good standing after a sour point of late or no payments. In my case, I paid them all off and went after a couple of companies. However, in the long run, most of them just ended up falling off of my reports after a couple years (this was before I knew much about credit repair so it was luck). The two I pursued disappeared from all but one report where only one is still reported to this day... They are sticky and want to enforce the whole 7 years... In my luck it will be over in a couple months! Best of luck!
ahhh..finally some answers to questions I have had also....thank you spiderella! I am also in a debt free program althoguh they work differnetly. I paid them up front 6 % of my total debt and then I pay them nothing else and save money on my own,. When I am ready to settle a card, have 35% of hte balance I call them and they set up the settlement and I then pay it. I have two more to go. I am petrified of my credit scores(mid 500's) and didn't know how to handle after they are 0 balance/closed/charged off. I guess i am understanding that i should finsih the debt program(will be done mid march) and then go after the negative TL's. thank you, this is my first positive feeling about my debt experience since I discovered this site(last month) I thought I was doomed and did it all wrong. Now I know I did it wrong but at least there is hope. When I go after the tradelines do I contact the original CA, the credit reporting agency or the debt collection company? I hope not the collection company because I hate dealing wiht them and what kind of letters do I send? forceful, nice, etc. an y advice is so greatly appreeciated!
ahhh..finally some answers to questions I have had also....thank you spiderella! I am also in a debt free program althoguh they work differnetly. I paid them up front 6 % of my total debt and then I pay them nothing else and save money on my own,. When I am ready to settle a card, have 35% of hte balance I call them and they set up the settlement and I then pay it. I have two more to go. I am petrified of my credit scores(mid 500's) and didn't know how to handle after they are 0 balance/closed/charged off. I guess i am understanding that i should finsih the debt program(will be done mid march) and then go after the negative TL's. thank you, this is my first positive feeling about my debt experience since I discovered this site(last month) I thought I was doomed and did it all wrong. Now I know I did it wrong but at least there is hope. When I go after the tradelines do I contact the original CA, the credit reporting agency or the debt collection company? I hope not the collection company because I hate dealing wiht them and what kind of letters do I send? forceful, nice, etc. an y advice is so greatly appreeciated!
The most important thing you guys need to do is carefully examine your written agreements. You can hold them to the agreement but if it's not in there, it won't happen. Look for something like; "Once paid on time, we will adjust your TL to reflect "Blah" status". .
thank you butch, I have noticed your expertise when assisting others. Could you advise if anything/letters to send and who to send once I am out of debt program? I asked them if when negotiating they could suggest a higer percentage settle for a deletion of (-) tradeline. THey responded that isn't a tactic they used because they are strictly there to help consumers out of debt. they put me through credit restoration after and said that is what they are there for. Also, should I go through a credit restoration? EDR(debt company) when done with their program lets you choose a program and reimburses you $150.00 towards it. Are they helpful?? Please advise anything is helpful. I am reading these posts all the time and I feel like since I admitted it was my debt already(by entering program) I am out of luck. Will I be stuck with these (-) tradelines for seven more years?!!!aghhhh. erin
