Help me protect my 750+ score against CA

[Dtroit]

Hello everyone,

Quick background: I was a guarantor for my nephew's apartment lease. He moved out last August. Apartment complex claimed there were ~$500 worth of cleaning charges. Neither my nephew or I received any type of notice of a balance that's due. In December, I received a notice from the collection agency (CA) for the amount due. I just sent a dispute letter back in December and they finally replied back this month. They sent me a copy of the lease and a list of cleaning charges, totaling ~$500. 

My nephew is turning 18 soon, and I would hate to have this debt reflect on his and my credit scores for the next 7 years. I'm looking to protect my 750+ credit score that I've built up over the past decade so I may purchase a house soon. 

What are my options now? 

• Write a "pay for delete" letter to the CA and hope they accept. Unfortunately, the CA is notorious for not accepting this. 
• ????

Thanks for your help everyone 

[Anonymous]

I'm not sure about laws where you live but in Ca a rentor must first show you the charges in question AND allow you to make arrangements BEFORE they send in a cleaner/fixer.

If the landlord or renter does not disclose the charges AND give you the chance to make arrangements to fix/clean than they forfeit the option to collect on those charges. Its all layed out in rental law.

I would take the landlord and the CA to small claims and collect. They've both violated the law.

[RobertEG]

The first issue is the legitimacy of the debt.  Excellent suggestion to review your state statutes and contact your local landlord/tenant commission for advice.  I would have the clear facts before concluding they have violated any statute or regulation.

You have used the dispute process to require them to investigate your assertion of inaccuracy, to which they have verified the accuracy of their reporting.

There is no appeal board to settle factual disputes under the FCRA, and additional disputes on the same issue can be dismissed as duplicative, and thus "frivolous or irreletant."  The next step is thus to get the issue before a body that can rule on the evidence, such as the courts.

Unless and until the debt has been shown to be invalid, a debt collector who is assigned collection authority has the right to report that collection authority to your credit file.

There is no simply way to prevent that.  You can send them a DV, which, if timely, will prevent their reporting until such time as they provide the requested debt verification.

A temp bar that they can most likely overcome by verification, which does not require them to "prove" the legitimacy of the debt.

I dont see that they have yet reported, so an alternate pay-for-not-reporting offer would be a way of dangling money as incentive not to report.

Be aware that if you do send a timely DV, it will bar any collection activity on their part, including negotiations on any pay for not reporting or pay for delete.

With no set period in which they must respond with verification, a DV would put negotiations in limbo, and might not be the best path.

No clear recommendation as to whether to first send a DV.

[Dtroit]

I did send my dispute letter via certified mail within the 1 month deadline. Right now, I just want to remove this from my credit report. If the charges are valid (I've never heard of $500 cleaning charges for a small college apt), I don't mind paying the charges. But what incentive do I have to pay the charges if it's still going to reflect negatively on my credit report for 7 more years? 

[Leadberry]

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@Dtroit wrote:

I did send my dispute letter via certified mail within the 1 month deadline. Right now, I just want to remove this from my credit report. If the charges are valid (I've never heard of $500 cleaning charges for a small college apt), I don't mind paying the charges. But what incentive do I have to pay the charges if it's still going to reflect negatively on my credit report for 7 more years? 

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Assuming you aren't able to fight the debt, your incentive to pay would be to avoid a lawsuit and a judgment that would negatively affect your credit report for up to ten years from the date it is rendered.  However, were I in your position I wouldn't pay unless I was being served.

[RobertEG]

FICO scoring is not an overall rating of credit-worthiness, and not the only factor used by creditors in their lending decisions.

The very presence of unpaid, delinquent debt can, in and of itself, be a denial criterion.  Any manual review will make it evident.

That alone can be a major reason for having your CR clear of unpaid, delinquent debt.  Many mortgage lendors make satisfaction of unpaid, delinquent debt a requirement prior to any final loan approval.

CR exclusion, even when it occurs, does not negate the debt.  While exclusion from your CR may shield its presence based on a simple pull of your CR, that does not ensure that others wont become aware of it by other means, such as simply asking if you have any old, unpaid delinquent debt.

It also wont prevent continued inquiries for your CR by any party still pursuing the debt.

[Dtroit]

Is there anything I can do to improve my chances of them accepting my "pay for delete" offer? I'm planning on sending them that letter via certified mail. 

[RobertEG]

A PFD offer is a request for good-will.

As such, I would keep it non-confrontational.  I would not send registered, and would omit any argument over legitimacy of the debt.

A registered letter might send an implication of some need for proof of receipt associated with some other planned action.

Their date of receipt of an offer has no need for legal proof.