Course of Action?

[jstap01]

Here is the situation.  I have credit accounts in collections.  Earlier this year, I lost my job due to downsizing.  I have recently gotten another job, but at significantly less money.  Currently, our priorities are food, mortgage, car, utilities.  Looking at my credit report, it looks like all of my collection accts are at about 51 mos since last payment.  SOL in PA is 48 months.  I know that I can defend any potential lawsuit, but what about credit scoring.  Will my credit score increase over time, if these just age?  I am not in a position to do a PFD and don't want to reage anything.

What is my best course of action?

[madmann26]

Welp,

Credit card accounts, when charged-off, keep reporting against your utilization until paid/settled. This hurts your credit the most. While collection accounts are bad, when you pay them, they do nothing for improving your score. The only way for these to help your score is to get removed/deleted.

I understand about priorities. Take care of your family and time will heal all wounds.

[KnewBee]

Hi, I have been in your shoes before so hopefully I can offer some advice based on my experiences. First you are doing the right thing taking care off all your neccessities first, sometimes we have to do that. Time always goes by quicker than we think it will so I would reccomend to keep doing what you are doing. I would also reccomend getting a file folder and saving all the collection letters you get. This will help you in the future by having the contact info etc. for all the collectors down the road if your situation changes and you are able to settle or PFD prior to them coming off. Also not uncommon for CAs to violate the law in their collection notices so saving all of these letters could give you leverage in the future.

Also if you get new collection letters from old debts outside of your SOL it will not hurt to DV those as soon as you get them. Just confirm they are over sol. 

If any of these exisiting collections are harrasing you, you can always sent a C and D letter until such time as you are able to pay them. 

Another thing I would reccomend is if you have any good accounts that you are able to pay to keep those current so that when the baddies fall off you will have some good accounts that will build a good score And a longer average age of accounts. 

If you do not have any good accounts I would reccomend getting a least one of two secured cards now if you can afford it  for two reasons. 1. Having a secured credit will start building up on your average age of accounts so by the time your other baddies drop off in about 3 years you will already have some good aged accounts. 2. I you need a hotel room or  to rent a car etc, often times you will need a major credit card. Most secured cards will let you do minimum of $200 so not a huge amount of money and once your situation improves you can always deposit more in the future to get a lower utilization to improve your scores.

I hope my advice helps! Remember many of us have been where you are at and it seems miserable and like it will take forever, but 3 years actually goes by pretty darn fast! best of luck to you! 

[jstap01]

As I comb my reports a little more thoroughly, I notice that on some accts both the OC and CA are reporting.  Can these be deleted as duplicates?

[madmann26]

Not to my knowledge.

The OC can report as long as needed, basically until you settle with the CA or it falls.

If you pay the CA, they will it turn (most cases) let the OC know that you have settled the account and the OC will zero out the balance.

[rootpooty]

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@jstap01 wrote:

As I comb my reports a little more thoroughly, I notice that on some accts both the OC and CA are reporting.  Can these be deleted as duplicates?

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yes they can do that.  

[RobertEG]

The same debt is often the basis for reporting of multiple derogs along the way, beginning with monthly delinquenies, then possible a charge-off, collection, legal judgment, etc.

OCs report derogs on their accounts.  Debt collectors report the fact of their legitimate authority to collect on a debt.  Different items, both of which can be reported on the same debt.

Offer of a payment in exchange for deletion of reporting only apply to the party who made the reporting.  OCs have no authority to agree to or compel a debt collector, even though hired by them, to delete their accurate reporting.  Similarly, paying a debt collector in exchange for their deletion of their reported collection does not compel the creditor to delete their own reporting on thier account.