I just checked my credit report for the first time in my life. I'm 54, but I've never checked it before. The building I live in was sold and the new landlord plans on turning the place into a co-op, so if I plan on buying into the co-op I am going to need a mortgage, et cetera. While I was talking to someone they told me to check my credit report.
Well, I was in for a suprise. My score is 657, 657 & 667. Not good. I have a fair rating so I'm not sure about obtaining a mortgage.
My question is concerning something I found on my report. I found a notation that Midland Credit Management did a check on 07/2007 and it said "Permissible Purpose: Collection."
I was thrown and in shock. I didn't know that I had anything in collections. I haven't received any phone calls or letters or anything. Years ago, when I was in my 30's, I became the legal guardian for my sister's 2 kids, and I was single and the only income in the household. I was raising 2 kids without any other financial assistance. I did end up having a problem and I thought everything was taken care of. I did have one account that is in collections and I know for sure that I paid it off. I did have a lien of IRS and that was also paid off and I received a letter from IRS say the liens were paid in full. I have been receiving refunds ever since, and that is about 18 years ago.
I got scared and since I want to improve my credit score since I want to eventually obtain a mortgage, I called the company thinking that it was an error and to get information on it. They told me to call Enhanced Recovery because they purchased the debt. I never heard anything from Midland Credit Management and I told her that. No phone calls or letters and how could they say that this was something that I owed, approximately $1200 and that I was lucky that they didn't add any fees to it. They gave me the number to call Enhanced Recovery located in Florida.
Since I thought this was a mistake and wanted to get it off my credit report, I called the company. On my CR I also saw that Enhanced Recovery did a check in August of 2007, but I never heard anything from them.
I am starting to feel that I opened a can of worms for myself. Right now I am trying to clear up all my other credit cards, I don't need any additional debt, especially going back to 1985. I don't remember this account so I asked her a few questions about it. I was told that this account was opened in 1984 or 1985 throught Citibank. The debit is a retail credit account and when I told her I never had an account like that she used the example such as "Fingerhut." She started asking when I could pay it off. Could I make a payment right then and there. How much could I pay a month? Did I have a checkintg account - on and on and on with questions. Since my niece unemployed and still living with me, and now she has a son, I am still supporting 2 other people and no other financial help.
She started to get annoyied and didn't really want to answer my questions. She just wanted to know when I was going to start paying this off. When I told her I couldn't make any payments right now, she started having an attitude. I started questioning that if this was my debit, how come I never received a call or a letter? For how long do they keep a debit alive if it was opened over 23 years ago? She told me that once a collection agency purchases a debt it starts as new. Is that true? Can they continue to try to collect a debt that is over 23 years old?
I ended off the conversation disputing this charge. I really don't think it's mine. I'm not 100 percent sure, but I don't think it's mine. What kind of leg do I stand on trying to fight this? She said that she would send me some information on it, but it might not be the original. I told her I want proof that it's mine. She said that it's my social security number.
Did I hurt myself by calling? How long are they allowed to tryi to collect a debt? Do they have to prove it's really my debt in order to try to collect?
Please help. I really need assistance.
Starting Score: 469