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Valued Member
Posts: 44
Registered: ‎03-13-2007
0

Collection from 3 years ago suddenly appears with different lender :( Please give me suggestions

I had a collection account about 3 years ago, actually it was a charge-off.  At that point I didn't have the money and never settled.  For some reason it dropped off my credit report.  They actually served me court papers but the case was dismissed.  I never got any information other then the original cout papers which did not even have a trial date.  When I look up the case information on the court website, it says case dismissed, so I am assuming that they felt they dont have enough information.
 
Now, I am doing better financially and working on my credit scores, and a collection shows up from Palisades Collection.  The original debt was about $4000, but not the balance is listed as $5334.  It shows on my report as a collection account that is more 120+ days late.  The debt was originally with MBNA but Wolpoff and Abramson was calling me at one point.
 
Obviously it has affected my score and I dont know where to start.  Should I call them, should I write a letter?  I have enough money to pay about half the balance but I want to do it in a way that affects my scores the least.  Please give me some suggestions, thanks.
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

PFD!
New Contributor
Posts: 60
Registered: ‎03-15-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

I am guessing it is a junk debt collection agency.  If so, they will probably offer you a very low settlement since they bought the debt for almost nothing.  Please be VERY careful dealing with them because you (or more accurately, they) can possibly create more problems. 
Established Contributor
Posts: 630
Registered: ‎06-20-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

Anyone know the SOL in California?
9/18/08 TU=707 EQ=706 EX=702
Valued Member
Posts: 44
Registered: ‎03-13-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

I am supposed to close escrow on Monday for my new house and I plan to PFD at that point.  My scores were not impacted so much as to cause me not to qualify should the lender choose to pull another report at the last second.
 
Can you give me an idea on what other problems they can cause?  I want to be ready when I start to deal with them.  The CA also held a past account I had from AT&T.  They would not do a pfd over the phone so I settled on 50% of the balance.  I will push much harder for a PFD on this one as I know more about how the game works now.
Valued Member
Posts: 44
Registered: ‎03-13-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

Also, this had about a 20 point effect on my scores.  I am assuming the effect was minimized because the debt is so old, am I correct?  Please let me know.
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

Assuming you CRs are not pulled again you should be ok. I would say you lucked out greatly by only losing 20 pts. These are FICO pts and not FAKO right?
Valued Member
Posts: 44
Registered: ‎03-13-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

Yes these are fico points.  FAKO was greatly affected, about 60 pts.  What do you mean by if they don't pull my CR again?
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

Sometimes right before closing they will pull your reports to make sure nothing has changed. I assume you have closed if you are in escrow right?
Valued Member
Posts: 44
Registered: ‎03-13-2007
0

Re: Collection from 3 years ago suddenly appears with different lender :(

I know what you mean.  Yes I am in escrow and should be closing Monday or Tuesday.  Supposedly they are not supposed to pull my credit again but you never know. 
 
The good thing is that the minimum fico for my loan program is 620 and according to my report now my mid is 627.

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