buy up all the outstanding collections? Basically, a customer would sign up for this 'credit repair service', what this company would do is contact the collection agencies, ask to buy the debt (pose as another CA?) (this is assuming the can buy collectons for really really cheap), the CA would take it off the reports, and the credit repair company would not report it, just charge fees to the individual. I know the validation method is preffered, but I was wondering why nobody does this?
Re: Why cant a 'credit repair firm The reason your business plan could never fly is because CAs usually resell debts in bulk -- blocks of "bad paper" -- rather than just a debt at a time. The idea is that if a CA buys a bunch of bad paper from another CA, they hope to cherry-pick through it and profit as a result. They know that they'll never be able to collect on many of the old debts. So, for example, Gulf States Collection Agency would find it MIGHTY peculiar if somebody simply called them on the phone and said, "Um, hi, I would be interested in buying Mrs. Smyrna Johnson's charged-off Exxon debt of $312.23. Yes, only that one. I'm not interested in anything else you have today, thank you." Mighty peculiar, lol. Doc
Re: Why cant a 'credit repair firm Doc... You are right. BUT (and this is a big BUT), what if the credit repair company were to offer a large percentage of the debt - say 50%-60%? Would the CA even care whay it was being purchased? There is another side to this however. Even if that were to happen, the credit repair company wouldn't have the authority to remove any entries created by the CA to begin with. I guess that makes this whole point moot.
Re: Why cant a 'credit repair firm I know it is peculiar. But, why do they care, as long as they get paid?
Re: Why cant a 'credit repair firm In my experience if the CA sells the debt, they stop reporting it... Isn't that what they are suppose to do?
Re: Why cant a 'credit repair firm No, it's not. They can continue to report it for the full 7 years as long as it shows $0 balance and that it was sold or transferred.
Re: Why cant a 'credit repair firm I wonder why they haven't listed those for me.. I would think this would be fairly easy to get off the report, since they do not have any vested interest at that point. I guess this strategy is flawed, I am trying to think outside of the credit report hell box.
Re: Why cant a 'credit repair firm I'm not saying they can't be disputed off once they sell it because you are right - they really don't have a need for it to remain any longer. But legally, they can continue to report it as I said.
Re: Why cant a 'credit repair firm | 975 posts since Jun 2001 141.158.12.215 | No, it's not. They can continue to report it for the full 7 years as long as it shows $0 balance and that it was sold or transferred. tmitchell ---------------------------------------. ======So then a debt could then be reported by say 5 different CAs making it appear that you have 5 dings instead of just one! This could also extend the reporting time up to 35 years IE 7 years for each CA.======
Re: Why cant a 'credit repair firm lbrown...Yes, you can have 5 CAs reporting the same debt (dinging you 5 times) - as long as all but the current owner report $0 balance and "sold/transferred". NONE of them can reage it. So it does not extend the original 7-year reporting period.
Re: Why cant a 'credit repair firm lbrown...Yes, you can have 5 CAs reporting the same debt (dinging you 5 times) - tmitchell ==================== So you are actually penalized 5 times for the same offense correct?
Re: Why cant a 'credit repair firm -------------------------------------------------------------------------------- quoting lb59 So then a debt could then be reported by say 5 different CAs making it appear that you have 5 dings instead of just one! This could also extend the reporting time up to 35 years IE 7 years for each CA.====== -------------------------------------------------------------------------------- Gib No it couldn't. The DOLA stays the same. lb59 This settles the 7 yr. DOLA. Now what about the issue of 5 CAs reporting the same debt? I this 5 strikes against you or is it just one offense? **********************************
Re: Why cant a 'credit repair firm It's 5 strikes against you. However, I think once an account is sold and updated as "sold or transferred", it is then considered a neutral account.
Re: Why cant a 'credit repair firm tmitchell | ======================== It's 5 strikes against you. However, I think once an account is sold and updated as "sold or transferred", it is then considered a neutral account. ======================== Why is it you A worse Derog simply because It has been sold than a debt that hasn't been sold? Why should the same item appear 5 times semply because it has been sold VS only one appearance it not sold?
