Credit Repair Companies

[creditstalker]

Hello All,

I need advice about the pros and cons of using a credit repair company.   Also,  if I decide to start the process myself should I mail ceritifed debt validation letters to the debt collectors directly or should I dispute via the credit reporting agencies. 

I appreciate all your help.

Thanks

[1GaDawg85]

Honestly the work that a "credit repair" company  does is the same thing that you can do yourself 

[Anonymous]

Referrals to Credit Repair is also against the myFico forum - this post might get deleted.

Credit Repair really just does everything you do, except you pay them money.  Save the $, fight the good fight.

[RobertEG]

Whether or not to send a DV depends upon whether you contest the debt, in whole or in part, and need validation before making any payment decisions.

It also depends upon whether your DV would not be timely, meaning whether they have sent a dunning notice and whether more than 30 days has expired since the date of any dunning notice.

Disputes sent to a CRA are for the purpose of contesting the accuracy of any information reported to your credit file.  It is separate from the DV process, and is not a one or the other decision.  CRAs have no involvement in the DV process.

Neither of your stated options include payment of the debt, such as by offering a PFD.

Is that out of consideration?

[Anonymous]

Cons:

What they can do is limited by law.

You can do the same thing they do, more effectively as you have more options.

They cost a boatload of money that could be used to pay old debts and current debt.

They tend to draw out the process as long as possible.

Items they do get remove often resurface 6 months to a year later.

Pros:

Your tongue doesn't get sore from stamp licking?   Thats all I got....

[creditstalker]

Thanks for your help.  I work and go to school full-time,  and just need to stop making excuses and putting it aside. 

I really don't trust debt repair agencies,  and I really want to resolve my debt the honest way. 

What If I don't have the full collection account number when writing the collection agencies? 

[creditstalker]

Here is a sample of the letter:

I pulled my credit bureau report, and I discovered that you claim I owe you a debt. Under FDCPA 809, send me validation of this debt. I request that you prove that I am indeed the party who is contractually obligated to pay off this debt. I hope that you are aware that reporting any invalidated information to major credit bureaus may constitute defamation of character. In addition you must also be aware that until you validate this debt you cannot continue collection activities or report this information to the credit bureaus.

Please attach copies of the following documents:

1. The agreement that authorized you to collect on the alleged debt.

2. Explain and show me how you have computed the amount

3. Complete payment history on this account, to prove that the amount you wish to collect is accurate.

4. Send me the copies of any documents that prove I agreed to pay the alleged amount.

5. Identify the original creditor.

6. Confirm that the account has not crossed the SOL period.

7. Prove that you are a licensed and bonded debt collector.

8. Show me your license numbers and registered agent.

Furthermore, this letter puts you on notice that all future correspondence should be done in writing and mailed to me via United States Postal Service at the above address. If your offices fail to respond to this request within 30 days from the date of your receipt all references to this account must be completely removed from my credit file and a copy/copies of such deletion request/requests must be sent to me immediately. And I will also move forward to file a motion to vacate the above Judgment as well as move forward to file a civil suit against your agency for defamation of character. Thank you in advance for your cooperation.

Sincerely,

[Anonymous]

Very little of what you are requesting is required as validation by FDCPA - #2 and #5, and thats it. There is no time limit for them to provide validation, nor are they actually required to remove reporting if they do not validate.

Some of the other items do fall under the Texas DV requirements.

wait, what? Judgement?

Ok, now I'm confused... what exactly are you contesting?

[bkelly906]

I'm pretty sure you can't dv a judgment.  Is this a default judgment?  You really need to try to pay this before they garnish your wages or clean out your bank account.

[creditstalker]

No it's not a judgement...I should have deleted that line.  I copied this letter from the internet.