Credit Counseling. Please Help

[ceemee2203]

Yea. I'm not sure if a fax would be good enough, someone with more knowledge than me could answer that.

[Anonymous]

I just called the collection agency (Coast Professional) and the lady said they don't have any letters that she can send that says if I pay the loan in full that it won't show on my credit report.

Then, she said that she can garuntee that if I pay today that it won't be on my credit report and that she can said me a paid in full letter.

Now I am afraid that if I pay in full it will show on my credit report as a collection paid in full.

I'd like to pay it have zero record of it on my report.  Is this possible?  What do you think my next steps should be?

[bobvette]

I would suggest two quick things to help you, one, go over to the "rebuilding credit" forum and research the threads there.  You need to demand proof of debt, tell them you want debt validation, they are required to provide you written proof. The second thing I would do to help your score is to remove yourself as an AU on your wife's account.  It is affecting your score to have a 77% util, you should see a little bump by doing that.  I wouldn't pay anything until the provide proof of debt.

[CruzImperial]

The debt validation letter won't work because it has been more than 30 days since the ca received the account. I would pif ASAP and if you can get a written statement from them before doing so, you could be worry free.

[bobvette]

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@CruzImperial wrote:
The debt validation letter won't work because it has been more than 30 days since the ca received the account. I would pif ASAP and if you can get a written statement from them before doing so, you could be worry free.

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I guess I didn't see where he said it had been more than 30 days, and isn't it 30 days from when he was notified, not the CA?  If it was 30 days from when the CA was notified they would always wait to notify the consumer.

[Walt_K]

This is from 2006 you said.  When in 2006?  Have you checked your state's statute of limitations.  Assuming you are outside your SOL, they can't sue you to collect on the debt.  Of course, they can still report the collection, but depending on when the DOFD (date of first delinquency) is, it may not be there for very long.  A collection can report for 7.5 years from the DOFD.  So based on what you have said thus far, you're looking at a deletion sometime this year or possibly early next year depending on when this account went delinquent. 

I realize that may mess with your timeline, but you shoudl probably try to figure that out before you decide whether you want to pay this.  I agree that you should take this over to the rebuilding forum as you will get advice over there from people more experienced with these specific kinds of issues.

As for getting something in writing from them that they will not report, there's not much you can do to force them to do that.  And I'm not surprised that they have stated they don't have anything they can send you.  However, assuming you are outside of SOL, you do have some leverage because there is nothing they can do to force you to pay this.  You might have better luck by sending them a letter outlining the terms of payment and asking them to send you a signed acknowledgment.  Something simple stating that without acknowledging the validity of the debt, you will agree to settle the dispute for payment in full in exchange for an assurance that they have not and will not report the debt to any credit reporting agency, including but not limited to Equifax, Experian, and TransUnion.  State that once they sign and return to you, you will deliver certified funds to them within ten days of receipt (or something similar). 

This way they don't have to do anything but sign the document and return, which they are perhaps more likely to do than writing something up themselves.  Query whether you want to affirmatively state that you are aware the SOL has run and that they cannot collect on the debt.

Of course there are risks in this because your activities may prompt them to report the collection.  This is why you should get a better understanding of when the collection will fall off if it is reported so that you can better weigh your options. 

[Anonymous]

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@Walt_K wrote:

This is from 2006 you said.  When in 2006?  Have you checked your state's statute of limitations.  Assuming you are outside your SOL, they can't sue you to collect on the debt.  Of course, they can still report the collection, but depending on when the DOFD (date of first delinquency) is, it may not be there for very long.  A collection can report for 7.5 years from the DOFD.  So based on what you have said thus far, you're looking at a deletion sometime this year or possibly early next year depending on when this account went delinquent. 

I realize that may mess with your timeline, but you shoudl probably try to figure that out before you decide whether you want to pay this.  I agree that you should take this over to the rebuilding forum as you will get advice over there from people more experienced with these specific kinds of issues.

As for getting something in writing from them that they will not report, there's not much you can do to force them to do that.  And I'm not surprised that they have stated they don't have anything they can send you.  However, assuming you are outside of SOL, you do have some leverage because there is nothing they can do to force you to pay this.  You might have better luck by sending them a letter outlining the terms of payment and asking them to send you a signed acknowledgment.  Something simple stating that without acknowledging the validity of the debt, you will agree to settle the dispute for payment in full in exchange for an assurance that they have not and will not report the debt to any credit reporting agency, including but not limited to Equifax, Experian, and TransUnion.  State that once they sign and return to you, you will deliver certified funds to them within ten days of receipt (or something similar). 

This way they don't have to do anything but sign the document and return, which they are perhaps more likely to do than writing something up themselves.  Query whether you want to affirmatively state that you are aware the SOL has run and that they cannot collect on the debt.

Of course there are risks in this because your activities may prompt them to report the collection.  This is why you should get a better understanding of when the collection will fall off if it is reported so that you can better weigh your options. 

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I am not sure when the DOFD is.  The agent for coast professional keeps saying that it isn't on my credit report yet.

I did find the executive team's phone numbers and email address and sent them this letter.  I am at work until 5 today so that is why I sent the email.  Think I will have any luck with this?

Coast Professional, Inc.
[BLANK]

Re: Collection Account for Original Creditor Account #: XXXXXXXXX

Amount: $1,745.24

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on the letter that you have sent me.

In the spirit of compromise, I am willing to pay this account IN FULL (or settlement percentage) if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

If you agree to the terms and accept this agreement, certified funds for the settlement amount of twenty-five dollars ($1,745.24) will be sent to Coast Professional in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.

Coast Professional agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Coast Professional will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

If you agree to the above terms, please prepare a letter on your company letterhead explicity agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Coast Professional. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.

Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

[BLANK]

My Email Address is [BLANK] and my phone number is [BLANK].

[rudy0720]

Pay the school bill! Collection will look worse and drag score down more than Utilization

[Walt_K]

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@rudy0720 wrote:

Pay the school bill! Collection will look worse and drag score down more than Utilization

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Once paid, it can still be reported.  And then the CA has very little incentive to delete as they already have their money.  That is why OP is trying to get something in writing stating it will be deleted or not reported in the first instance.

OP, I think the letter is a little aggressive, but accomplishes its purpose.  What's done is done.  No way to predict what will happen.  You'll just have to wait and see how they respond.  Best of luck. 

[tinuviel]

Hi, all!

This is an interesting discussion, but I'm going to move it over to the Rebuilding forum, as the thread has turned in a direction suitable to that particular forum and I think that there are a bunch of folks over there that will be able to add valuable insights.