My husband and I are going through our terrible credit reports and crying daily I am finally down to one open collection account. I initially denied this item, because I never had a $2000 credit card. After some investigating, it turns out to be a $400 Citibank card I had in college. (Only Experian lists the original creditor: apparently, it's been sold a couple times.) Anyway, I call the collection agency, and attempt to negotiate. I just can't fathom how if I couldn't pay $400, interest would just continue to accrue, and I could now be expected to pay $2000. BTW, it appears to go up $100 every month, but is scheduled to disappear next year. The collection agency refused to go below $1000, which is more than I can pay in a single sitting. I guess I feel divided. I want to pay, but $1000 is robbery. I also of course want a full deletion. Any advice on my next step? What can I realistically expect to pay to get this account to go away? CC
Some Questions For You CCMax: - In what state to you reside? - In what state is the collection agent located? - How much (dollar-wise) can you realistically afford to pay, in a lump sum? - What is your overall credit repair goal (house, car, etc.), and when? If you could answer these it will be that much easier to point you in the right direction. Keep The Faith, Anthony Villaseñor
RE: Some Questions For You Check the Statute of Limitations on collection of a debt in your state (this is different from the seven years thet the CRAs can repoort the debt). This information can be found at the following: http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml -Alwilda Smith
Stop worrying about 1 collection account! You didn't say when the account became delinquent or in what state you had this account, but if it's going to drop off next year, then you're probably safe. This is yet another example of why the 'C' in Citibank is pronounced as 'S.' Many credit card companies don't continue to pile on interest with charged off accounts, Citibank is one that does. What should you do? Absolutely nothing.
RE: Some Questions For You I live in MD. The collection agent is in OH. Of course it's a bit more complicated. I got the account when I lived in DC in 1992, moved to NY in 1992 where it became delinquent in 1994. Moved to MD in 1997, but I must say the odd thing about this is that this collection agency has NEVER contacted me to the best of my knowledge. I found out about it through my CRs. I called Citibank, they had sold it and wouldn't deal with me; and the collection agency they referred me to had no record of my account, and said it had been sold to this last one in OH. Our goal is to buy a house--yesterday. We talked to mtg brokers who gave us the directive to pay off everything. I want to pay the original amount; the interest seems like usury. But I suppose delinquency counts for something, so I figure between $600-$700 is a fair amount. But only if there is a deletion.Help! CC
RE: Some Questions For You Very well then, this debt is time-barred, the SOL is 3 in Merryland and DC, 4 in New York. You didn't mention a new mortgage in your first message, that would be a reason to pay something like this. I would rather burn the money than pay it to some collection agency for them to profit by it. They probably paid less than $10 for your $400 charge off. I would suggest offering half the original debt. Tell them if they don't accept your offer they will have nothing. Get everything it writing, of course.
Possible Settlement Letter CCMax: Since the account originated in DC, the SOL has long since become stale so the agent canâ??t litigate for recovery. It can still be reported, however, and that is why the mortgage broker instructed to pay-off. What I suggest is that you DO NOT indicate your desire to purchase a home, when (if) dealing with the collection agent. If you do the agent (if their good) will use this info as leverage, and remain resistant until â??itsâ? price is obtained. After all, time is on their side because you wish to buy a home soon. You may want to consider sending a letter similar to the one Kristi composed. It can be found at: http://board.creditnet.com/read.php3?num=1&id=16936&thread=16900; and may do the trick. Donâ??t offer more than 25% of the current balance, however, because as an acquisition creditor the collection agent is likely to take far less than demanded. Hay itâ??s easy to adjust upward but renegotiating a lesser sum will be next to impossible, so start low (25% of current balance) and go from there. Keep The Faith, Anthony Villaseño
RE: Possible Settlement Letter Here Here! I concur with Anthony! Start low. Expired SOL = You are king! Collectors discovery of desire to purchase home = SOL (and I don't mean Statute of limitation).... CreditDefenses.com wrote: ------------------------------- CCMax: Since the account originated in DC, the SOL has long since become stale so the agent canâ??t litigate for recovery. It can still be reported, however, and that is why the mortgage broker instructed to pay-off. What I suggest is that you DO NOT indicate your desire to purchase a home, when (if) dealing with the collection agent. If you do the agent (if their good) will use this info as leverage, and remain resistant until â??itsâ? price is obtained. After all, time is on their side because you wish to buy a home soon. You may want to consider sending a letter similar to the one Kristi composed. It can be found at: http://board.creditnet.com/read.php3?num=1&id=16936&thread=16900; and may do the trick. Donâ??t offer more than 25% of the current balance, however, because as an acquisition creditor the collection agent is likely to take far less than demanded. Hay itâ??s easy to adjust upward but renegotiating a lesser sum will be next to impossible, so start low (25% of current balanc....
Thanks all. I appreciate the advice. I got the letter and am tailoring it for me. I'll send it out immediately. Cross your fingers!!!! Thanks again. CC
