Payment Method to use to pay off Cavalry?

[Anonymous]

Hi, I've been lurking for about a month since I first got my credit report and FICO score, but this is my first post...and my first step in fixing my credit so that I can try to buy a house in the future.

I have a couple of small accounts in collections that I would like to and am able to pay off. One is $130 with Cavalry for Sprint (2004) and the other is $118 with LVNV for MCI (2006). I called both Sprint and MCI to see if I could pay them directly and both said no. So far I've been too chicken to call the CAs to arrange payment because I've read horror stories about them starting to hound people when they call.

By coincidence I received a letter in the mail today from Cavalry offering to settle the Sprint bill for $78. I would rather pay the whole thing and just get it over with. My question is this: what is the best way to pay this bill? I'm a little paranoid that if I give them a check or pay online with my debit card, they'll use the info to pursue future bills from other original creditors if they get them. I have some REALLY REALLY old ones that are close to or out of the SOL so for now I'm just trying to deal with the more recent ones to see if I can improve my FICO to get qualified for some credit to start rebuilding myself.

Should I send a money order? Should I buy a pre-paid Visa and pay online with that? If I use one of those options, how do I prove payment in the future if something goes wrong and they say they don't get it or something like that? I'm also scared that by paying these two small ones off, I'm going to be inundated with collection calls when they post to my credit report. At the moment, I can manage these two small payments, but bigger ones will have to wait although I do have an old Providian account with "Trs/Cigpf1 Corp" for $1700 that I would eventually like to pay. (Maybe with next year's tax return?)

Thanks for your help!

Starting Over AGAIN

TU Score was 538 on 10/13/07

Auto Score (WF) was 505 in May 2007 - that's what got me started

[Anonymous]

I'm assuming you don't have a credit card? Do they even accept payment from credit card?

That would ensure maximum protection against unauthorized charges.

Or...you can open up a checking account just for paying stuff in collections and only put in enough funds for the payment you are going to make and make sure you are going to get something in writing detailing the payment they are taking out of the account so there hands are tied if they attempt to do anything more out of the account.

[Anonymous]

Thanks for the response. Nope, no "real" credit card, but my debit card is a Visa Check Card and can be used like a credit card. There is a website listed on the letter saying you can pay via secure server. I would LOVE to just pay it online with my check card if I can be sure that they won't be sneaky and use that info in the future if they happen buy another of my accounts. Maybe I'm just being too paranoid??

Another checking account might be worth looking into - I hadn't thought of that option.

Message Edited by Starting_Over_Again on 11-07-2007 05:45 PM

[Anonymous]

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Starting_Over_Again wrote:

Hi, I've been lurking for about a month since I first got my credit report and FICO score, but this is my first post...and my first step in fixing my credit so that I can try to buy a house in the future.

I have a couple of small accounts in collections that I would like to and am able to pay off. One is $130 with Cavalry for Sprint (2004) and the other is $118 with LVNV for MCI (2006). I called both Sprint and MCI to see if I could pay them directly and both said no. So far I've been too chicken to call the CAs to arrange payment because I've read horror stories about them starting to hound people when they call.

By coincidence I received a letter in the mail today from Cavalry offering to settle the Sprint bill for $78. I would rather pay the whole thing and just get it over with. My question is this: what is the best way to pay this bill? I'm a little paranoid that if I give them a check or pay online with my debit card, they'll use the info to pursue future bills from other original creditors if they get them. I have some REALLY REALLY old ones that are close to or out of the SOL so for now I'm just trying to deal with the more recent ones to see if I can improve my FICO to get qualified for some credit to start rebuilding myself.

Should I send a money order? Should I buy a pre-paid Visa and pay online with that? If I use one of those options, how do I prove payment in the future if something goes wrong and they say they don't get it or something like that? I'm also scared that by paying these two small ones off, I'm going to be inundated with collection calls when they post to my credit report. At the moment, I can manage these two small payments, but bigger ones will have to wait although I do have an old Providian account with "Trs/Cigpf1 Corp" for $1700 that I would eventually like to pay. (Maybe with next year's tax return?)

Thanks for your help!

Starting Over AGAIN

TU Score was 538 on 10/13/07

Auto Score (WF) was 505 in May 2007 - that's what got me started

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IMO I would send a DV to the CA  CMRRR.......when they answer send them a letter stating that you will PIF  IF they will not report to any CRA !!!!!!!!  NEVER TALK TO A CA ON THE PHONE!!!!!!

IF they are already reporting on your CR.....send them a PFD    CMRRR. They must answer within 30 days with complete info. OR they can not verify with the CRAs or they would be in violation.

If they answer and accept the PFD make sure that they wording is correct.....some will make it sound as if they will delete but it is misleading.  Post their answer in here and people will let you know if it is worded correct before you pay!

Never sign a DV to a CA...just type your name.

If they send you a letter stating that they will NOT report to any CRA if PIF....send them cashier check or money order within 10 days. send it CMRRR   so that you have a signed receipt.....

what is the SOL on Providian????

[Anonymous]

Yes, Cavalry is reporting on my CR - It's the only one listed in the collection account section (I have the Suze Orman kit)

SOL on Providian is 6 years I believe? (I'm in MN and I don't have my notes at the moment.) The date of last activity is Dec. 2004 if that helps.

Thanks for the responses thus far. I was planning to just pay Cavalry, but maybe I'll do a PFD to see if they'll remove it. I'll work on it. Can you tell I'm new at this??

[Anonymous]

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Starting_Over_Again wrote:

Yes, Cavalry is reporting on my CR - It's the only one listed in the collection account section (I have the Suze Orman kit)

SOL on Providian is 6 years I believe? (I'm in MN and I don't have my notes at the moment.) The date of last activity is Dec. 2004 if that helps.

Thanks for the responses thus far. I was planning to just pay Cavalry, but maybe I'll do a PFD to see if they'll remove it. I'll work on it. Can you tell I'm new at this??

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I would deal with the small debts first. Before even a dispute with Providian make sure that you have the full amount due!!!!!

I have 2 reads on MN  SOL    im going with the 5 years SOL.........there is 1 with a 3 years SOL but im not sure if it applies.

Contract, account or promise that is not based on a written instrument: 5 years.

Obligation or liability, other than a contract, account or promise not based on a written instrument: 3 years.
           You might be able to check with the state to find out which applies. The 3 & the 5 year look the same to me. This is very important!!!!!  IF the 3 year is correct  the ball is in your court! If not you have 2 more years until past SOL. 

First dispute calvery  & LVNC  and at the same time DV  CMRRR....tell them that you want a complete account history.......These types of debts are contract and SOL is 8 years.

They must answer you DV within 30 days. If they answer then send them a PFD. Im just surprised that they offered a settlement as the debt is nowhere near SOL.

Are the OCs reporting on your CR or just the CA??  I ask as CA are know to re-age the DOFD. Do you remember about when you stopped paying them?

[Miner]

Your sprint debt sounds like mine.  I had a debt to Sprint PCS from 2003 (I was out of work for 2+years).  Calvary offered to settle for some amount (I think it was ~$120) back in the summer of 2006.  So I took them up on it.  Before I settled, there was nothing on my credit report.  After I paid them, it showed up (though as paid).

So my advice is to try to settle with them where they will delete any mention of the collections from your credit report in trade for a paid in full.  Looking back, I wish I had done so.  I would have rather paid them the extra $40 for it to stay off the report.

To be honest, the collection didn't really hurt me much (I had scores ranging 608-640 before it hit).  I think the point hit on my report was probably 10 to 13 and seems to lessen with age.  I was still able to refinance my home this past month (scores in the 680s) and in Aug got a 2.9% car loan from GMAC with scores 660-670.  Now that I have my credit cards paid off, I'm expecting my credit scores to be around 700 by the end of the year.  I have numerous lates (though all from 2.5 years or older), had too much credit card debt (not anymroe), and 2 collections (one due to the ex-wife that should drop off very soon and the other one from Calvary).