CC collections

[Anonymous]

Hello again everyone and thanks for all the valuable input, but I still have many questions

First off,  I had a providan credit card that was sent to collections in 2004 and the balance in collections is $2,684 and I know that the balance wasn't that when I could not afford to pay it.   I called the CA and asked for them to send a letter stating that it will be removed from my CR once the balance was paid and they told me they could not do this

My question is is there any room for negotation in regards to lowering the balance due, and also is this true that they will not send a letter stating that they will remove it from my CR once it is paid?

[RobertEG]

They are correct, if they follow the credit reporting guidlelines issued to them, in stating that it is improper for them to grant deletion from a CR based on payment.

Some will ignore the guidlelines in exchange for $$.

And unpaid debt continues to accrue interest under the terms of agreement in your CC account, so the amount grows even afer charge off or collection occurs.  And default usually puts you at the max interest rate, which could now be close to 30% APR.

If the CA wont accept a PFD, you either pay them or wait for your state SOL to expire, and the 7 1/2 period from DOFD on the OC account to lapse.

[Anonymous]

Does that mean after 7 1/2 years the balance also is removed alot with the derogatory items associated with this account?  

And is it 7 1/2 yrs from when it was sent to the CA?  What if another CA takes it over does the 7 1/2 yrs start over?

[MarineVietVet]

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@Anonymous wrote:

Does that mean after 7 1/2 years the balance also is removed alot with the derogatory items associated with this account?  

Yes the entire account history is removed although the debt will always remain. I've learned that from RobertEG and others.

And is it 7 1/2 yrs from when it was sent to the CA?  What if another CA takes it over does the 7 1/2 yrs start over?

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. FCRA 605(a)(5). The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for 7 1/2 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That is one single date-certain, and cannot be reset. FCRA 605(c).

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is 7 1/2 years from the same DOFD on the OC account, and the CA cannot reset this date. Again, FCRA 605(c).

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