topic common credit questions for a newbie......... in Rebuilding Your Credit

common credit questions for a newbie.........

adio413 — Thu, 07 Jun 2012 03:31:58 GMT

hi all,

i'm brand new here so please bear with me.............

so, i have collections and charge-offs on my credit report. my credit score is between 535 and 500 and i would like to buy a house by the end of next year. the majority of my charge offs and collections have open dates between 2007 and 2009 and are debts between $61 ( the lowest) and $3500 ( the highest).

my plan is to:
1. send debt validation letters to a few collection agencies
2. if they validate them, i would send a pay for deletion letter and see what they say. if they don't validate them, then they would come off of my credit report.
3. if they say ' no ' to my pay for deletion letter, then i would send settlement letters and take it from there

1.) when i send debt validation letters to the collection agencies, more than likely, will i receive a letter showing the "validation" from them?

2.) if they completely ignore my letter , even though i'll ask for 30days to validate the debt, what should i do then?

3.) if i do a PFD letter and the company says ' no, we don't do that', should i be persistent and keep trying? if i should keep trying should i do it through letters or phone calls or both?

i read many times in different websites and forums that paying for collections and/or charge offs (whether they are paid in full or settlements)won't raise your credit score at all!! BUT i was told by a few credit counselors that pay for deletion letters don't work and that if i offer settlements, that i can expect to see my scores rise after 60 - 90 days after the payment is done. is that true? it seems just paying the settlements shows people that you paid something on the debt and thats all.

and what does "GW" on here stand for?
thank you so much!!!!!!!!!

Re: common credit questions for a newbie.........

cassembler — Thu, 07 Jun 2012 04:54:55 GMT

Start here (also):

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/What-Steps-Do-I-Take-Do-I-DV-PFD/td-p/337142

GW = Good Will [letter], usually a, "Please do X because it's the right thing to do" letter.

EDIT: Paying or settling a collection typically will not affect your score at all, but may affect how your report looks in manual review. I'd be weary of these credit counselors.

Re: common credit questions for a newbie.........

adio413 — Fri, 08 Jun 2012 10:57:40 GMT

thanks cassembler. unfortunately, im still within the SOL. these debts on my credit report occured when i lived in pennsylvania, but i live in maryland now.... so idk if collection agencies would use the Pa or Md SOL and idk if i could use that info you linked to. also, i can't PIF either at this time.

anyone else?

Re: common credit questions for a newbie.........

RobertEG — Fri, 08 Jun 2012 20:21:04 GMT

Sending a request for debt validation does not set any statutory period or requirement that they respond. Penalty for not providing the requested debt verification is their cessation of collection activiites until such time as they choose to provide verification.

If they decide to suspend collection activites, that is their option.

Showing satisfaction of a debt is not trivial.... it informs others that you have fulfilled your debt obligation. It goes beyond just a three-digit score.

Re: common credit questions for a newbie.........

rredstick9 — Sat, 09 Jun 2012 11:36:33 GMT

How do you pay for deletion letter? What does it need to include and how does it work?

thanks I am new too!

Re: common credit questions for a newbie.........

Booner72 — Sat, 09 Jun 2012 23:07:02 GMT

adio413 wrote:
hi all,
i'm brand new here so please bear with me.............

so, i have collections and charge-offs on my credit report. my credit score is between 535 and 500 and i would like to buy a house by the end of next year. the majority of my charge offs and collections have open dates between 2007 and 2009 and are debts between $61 ( the lowest) and $3500 ( the highest).

my plan is to:
1. send debt validation letters to a few collection agencies
2. if they validate them, i would send a pay for deletion letter and see what they say. if they don't validate them, then they would come off of my credit report.
3. if they say ' no ' to my pay for deletion letter, then i would send settlement letters and take it from there

1.) when i send debt validation letters to the collection agencies, more than likely, will i receive a letter showing the "validation" from them?

2.) if they completely ignore my letter , even though i'll ask for 30days to validate the debt, what should i do then?

3.) if i do a PFD letter and the company says ' no, we don't do that', should i be persistent and keep trying? if i should keep trying should i do it through letters or phone calls or both?

i read many times in different websites and forums that paying for collections and/or charge offs (whether they are paid in full or settlements)won't raise your credit score at all!! BUT i was told by a few credit counselors that pay for deletion letters don't work and that if i offer settlements, that i can expect to see my scores rise after 60 - 90 days after the payment is done. is that true? it seems just paying the settlements shows people that you paid something on the debt and thats all.

and what does "GW" on here stand for?
thank you so much!!!!!!!!!

GW stands for "goodwill".

The collection counselors told you 10000% bad advice. A settlement won't help your score, and it shows up as a settlement on your report "Settled for less than" yada yada which isn't a good statement to have. PFD means there is nothing left for anyone to see. Good thing you found the forum before you settled.

Re: common credit questions for a newbie.........

llecs — Sat, 09 Jun 2012 23:25:02 GMT

rredstick9 wrote:
How do you pay for deletion letter? What does it need to include and how does it work?

thanks I am new too!

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

Re: common credit questions for a newbie.........

adio413 — Sun, 10 Jun 2012 02:06:55 GMT

thanks!!! very glad and appreciative to be here

Re: common credit questions for a newbie.........

adio413 — Sun, 10 Jun 2012 23:34:05 GMT

sending out 5 DV letters tomorow..............

Re: common credit questions for a newbie.........

adio413 — Sun, 10 Jun 2012 23:59:04 GMT

a few things on my CR that maybe y'all can help me with...............

cap one

XXXX-xxxx-xxxx

late dates: LAST LATE DATE 4/10

DATE REPORTED: 5/12

DATE LAST ACTIVITY: 2/10

DATE OPENED: 2/07

HIGH CREDIT: $1862

ECOA: B

BALANCE: $2683

ACCOUNT TYPE: REV

PAYMENTS REMAINING: $-

CURRENT STATUS: CHARGE OFF

HISTORICAL STATUS:

MO= 63 30=3 60= 3 90 = 9

AMOUNT PAST DUE $2683

ACCOUNT CLOSED AT CREDIT GRANTOR'S REQUEST

MIDLAND CREDIT MANAGEMENT

XXXX-XXXXX-XXXX

DATE REPORTED: 2/11

DATE LAST ACTIVITY: --/--

DATE OPENED: 08/09

HIGH CREDIT: $994

ECOA: B

BALANCE: $1222

TERMS: 001

PAYMENTS REMAINING: $1221

CURRENT STATUS: COLLECTION

HISTORICAL STATUS:

MO= 18 30= 0 60= 0 90= 0

AMOUNT PAST DUE $1222

these are 2 of the 3 big ones on my CR. at the time, i was living in pittsburgh, pa but i now live in maryland.

1. can i send DV letters to them or do a PFD letter?

2. what does the 'date of last activity' and 'date reported' mean? what is the 'ECOA'?

3.why wouldn't midland put a date of last activity on there?

4. if i were to do a pfd letter, would i offer $ based on the high credit or amount past due?

5. under historical status what does the 'mo' mean?

Re: common credit questions for a newbie.........

RobertEG — Mon, 11 Jun 2012 01:47:14 GMT

My first question on the charge-off is what is the DOFD on the account?

The CR shows plural 30 lates, indicating that the account went into and out of a delinquency status a couple of times. Each beginning of a new chain of delinquencies resets the DOFD, so it is impossible to tell what the current SOL or CR exclusion period might be. SOL and credit report exclusion dates are the two dates that have the most significance, and may affect your decisions on how to proceed.

ECOA code refers to the type of credit obligation....joint, sole, AU, co-signor.

DOLA means little or nothing.... its simply the last date some update was reported. It is not one specific code.

MO in relation to your payment history profile designates the number of months of reporting of record in your file. Payment history usually is retained for at least the last 24 months.

DV would only be sent to a debt collector. Timely DV must be sent within 30 days of their dunning notice to invoke any cease collection bar.

How long ago did they provide dunning notice? Being opened in 2011, DV may no longer be timely. You can still request DV, but if untimely, it would impose no restrictions upon the debt collector.

PFD offers can be for any amount you choose to offer. The essential factor is that, for whatever amount they accept, they report the debt as fully satisfied.

Re: common credit questions for a newbie.........

adio413 — Mon, 11 Jun 2012 12:52:11 GMT

REG,

idk when the DOFD is/was. this credit report is from universal credit services,so it's probably a FAKO type deal.

i also dont remember when and/or if a dunning notice was sent. i would like tosend DV letters, but with the dates on this CR, well, i just don't know what my next move should be

RobertEG wrote:
My first question on the charge-off is what is the DOFD on the account?
The CR shows plural 30 lates, indicating that the account went into and out of a delinquency status a couple of times. Each beginning of a new chain of delinquencies resets the DOFD, so it is impossible to tell what the current SOL or CR exclusion period might be. SOL and credit report exclusion dates are the two dates that have the most significance, and may affect your decisions on how to proceed.

ECOA code refers to the type of credit obligation....joint, sole, AU, co-signor.
DOLA means little or nothing.... its simply the last date some update was reported. It is not one specific code.
MO in relation to your payment history profile designates the number of months of reporting of record in your file. Payment history usually is retained for at least the last 24 months.

DV would only be sent to a debt collector. Timely DV must be sent within 30 days of their dunning notice to invoke any cease collection bar.
How long ago did they provide dunning notice? Being opened in 2011, DV may no longer be timely. You can still request DV, but if untimely, it would impose no restrictions upon the debt collector.

PFD offers can be for any amount you choose to offer. The essential factor is that, for whatever amount they accept, they report the debt as fully satisfied.

Re: common credit questions for a newbie.........

adio413 — Mon, 11 Jun 2012 13:10:25 GMT

here's another...........

GECRB/SAMS

XXXX-XXXX-XXXX

DATE REPORTED: 09/09

DATE OF LAST ACTIVITY: 2/09

DATE OPENED: 2/07

HIGH CREDIT: $600

ECOA: B

BALANCE: $0

ACCT TYPE: REVOLVING

PAYMENTS REMAINING: $0

CURRENT STATUS: CHARGE OFF

HISTORICAL STATUS:

MO= 31 30=1 60=1 90=4

AMOUNT PAST DUE: $0

i was gonna send them a DV letter but it seems that i don't owe them any money. should i send a GW letter? idk what the DofD was

Re: common credit questions for a newbie.........

Middleswarth — Mon, 11 Jun 2012 14:26:05 GMT

adio413 wrote:
REG,
idk when the DOFD is/was. this credit report is from universal credit services,so it's probably a FAKO type deal.
i also dont remember when and/or if a dunning notice was sent. i would like tosend DV letters, but with the dates on this CR, well, i just don't know what my next move should be

Get your reports from here - AnnualCreditReport - It is free once a year and will give you much more detail.

Re: common credit questions for a newbie.........

adio413 — Mon, 11 Jun 2012 14:30:37 GMT

Middleswarth wrote:
adio413 wrote:
REG,
idk when the DOFD is/was. this credit report is from universal credit services,so it's probably a FAKO type deal.
i also dont remember when and/or if a dunning notice was sent. i would like tosend DV letters, but with the dates on this CR, well, i just don't know what my next move should be
Get your reports from here - AnnualCreditReport - It is free once a year and will give you much more detail.

would they have the DOFD on my accounts?

Re: common credit questions for a newbie.........

adio413 — Tue, 12 Jun 2012 13:59:37 GMT

ttt and bump

Re: common credit questions for a newbie.........

rckstrscott — Tue, 12 Jun 2012 14:11:37 GMT

adio413 wrote:
ttt and bump

yeah, the annualcreditreport.com reports are straight from the agencies and have the DOFD

-scott

Re: common credit questions for a newbie.........

adio413 — Tue, 12 Jun 2012 20:15:22 GMT

thanks rckstrscott............

i mailed all my dv letters today and a gw letter to credit acceptance. now i wait

Re: common credit questions for a newbie.........

adio413 — Thu, 21 Jun 2012 02:53:48 GMT

so i mailed a DV letter to cbcs last week and heres what i got back today.........

account #

my name

address

client name: pepco account balance= $271.14 total balance= $271.14

by ignoring this obligation, further collection activity could be taken to bring this account to a conclusion. this could be avoided with your cooperation. to avoid further processing, we must have your payment in full.

if you continue to ignore our request for a disposition of this account, you, yourself, must accept responsibility.

please mail payment in full to stop collection activity.

this communication from a debt collector is an attempt to collect a debt and any information obtained will be used for that purpose

you may contact us at 1877-334-4763

why didn't they validate the debt? should i send another DV letter or go straight to the PFD letter?

Re: common credit questions for a newbie.........

MarineVietVet — Thu, 21 Jun 2012 03:14:31 GMT

adio413 wrote:
so i mailed a DV letter to cbcs last week and heres what i got back today.........

account #
my name
address

client name: pepco account balance= $271.14 total balance= $271.14

by ignoring this obligation, further collection activity could be taken to bring this account to a conclusion. this could be avoided with your cooperation. to avoid further processing, we must have your payment in full.

if you continue to ignore our request for a disposition of this account, you, yourself, must accept responsibility.

please mail payment in full to stop collection activity.

this communication from a debt collector is an attempt to collect a debt and any information obtained will be used for that purpose

you may contact us at 1877-334-4763

why didn't they validate the debt? should i send another DV letter or go straight to the PFD letter?

They sent you everyting that is required by law. Here is what FDCPA 809 says:

FDCPA 809. Validation of debts

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing—

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer’s written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.