01-19-2012 01:21 PM
I have two accounts in collections with Asset Acceptance LLC.
They are both from a Circuit City card, and Chase card from back in 2006. (Total unpaid debt is about 5000.00 between the two)
I just pulled a TU update report to find that I still have "recent collections" holding back my score.
Can Asset Acceptance keep dinging those collections and killing my potential score every month??? Every month, they update the "recent activity" date to current. Not happy with this.... For the past 3 years, they also have been tacking interest on the debt, which was not legal if I am correct. I disputed it, and for the past 2 months, the balances have finally stop increasing. I am far past the SOL in NH FWIW....
What should I do with this???? I thought about trying a PFD 50% settlement offer, but I have read HORROR stories about this CA online everywhere. If I do pay it, the balances reporting on my credit report will drop by 5000.00, and could definately improve my score some. Supposely, they are listed to fall off my reports in April/May of 2014, but MANY have complained about them doing their best to keep them on your reports somehow for WAY over 7.5 years.... How can they do this???
Offer a settlement of 50% of the balance and eat it? Offer 50% if they delete it? Ignore it for 2.5 years, and watch my credit scores hardly go up if they keep updating the collection with recent activity??????? HELP!!!!!! Grrrr......
01-19-2012 02:02 PM
I just recently got an offer in the mail from Asset Acceptance to settle an AT&T account with a balance of $942.94 for $99.00. Before I pay this, I wanted to try a PFD. I sent them a PFD letter CMRRR on 1/9/12 and got the green card back. I haven't heard anything from them yet, but I'm not going to hold my breath that they will accept my offer. The offer expires Jan. 31, so I guess I will have to make a decision by then whether or not to pay it if I don't hear from them by then or wait it out. I will update when I hear from them.
01-19-2012 11:47 PM
01-20-2012 12:31 AM
As long as debt remains unpaid, the creditor has invested funds in the consumer for which interest is expected. I am sure that your CC agreement clearly spells out the fact that interest on unpaid debt does not terminate based on the type of collection activities they must take to secure payment.
Most creditors and debt collectors regularly report most if not all of their current accounts to the CRAs. One huge report of everything. Often, the accounts can have no actual changes, but are still "updated." It is simply a reaffirmance of the continued accuracy of a status or amount. In the case of a debt collector, the legitmate reporting of increased debt based on interest accrual can itself be a legitimate update.
Such reporting does not impact scoring or how long an item will remain in your CR. CR exclusion for a collection, for example, is based ONLY on the DOFD on the OC account, which is not changed based on any monthly reporting. The CRAs control the calculation of CR exclusion, and dont use any date other than the DOFD.
SOL has nothing to do with the asserted amount of the debt. The debt lives forever until paid. SOL only controls your continued legal obligation to pay the debt.
Your choice is to pursue a PFD or just wait for its normal CR exclusion. Their choice is to reject the stipulation of earlier CR deletion. It doesnt make a lot of financial sense if they can no longer recover the debt due to expiration of SOL, but debt collectors are not always known for acting with common sense. Perhaps they simply feel bound to abide by their credit reporting agreements not to delete based on payment of the debt. Many debt collectors prey upon the ignorance of consumers who wrongfully believe that simple payment of the debt will result in CR deletion, and thus simply pay without insisting on a prior PFD agreement. Its their call.
01-20-2012 01:09 AM
Thanks for the reply Robert. So for another 2.5 years, the CRA's will continue to show a "recent collection" until these accounts have been removed, or fallen off??
"recent collection" is probably the worst thing hitting my score right now.