Enhanced Recovery Collection / No Idea What It Is

[harryfpotter]

I'm building credit from zero, no open accounts and no negatives. I've applied for an recieved a Capital One Quicksilver One. I've since read that applying for credit triggers collections. A week ago I got a collection from Enchanced Recovery for less than $250. I've looked online and found that these are generally past due phone bills. Some people have had success with pay for delete[1], but then seem to have stopped[2], and the complaints about this company are many[3].

[1] http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Enhanced-Recovery-Company/td-p/1631452

[2] http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Enhanced-Recovery-Company-PFD-reject/td-p/255...

[3] http://www.consumeraffairs.com/debt/enhanced-recovery-company.html

I never recived a dunning letter. I have no idea what the debt is about. This is my first time dealing with collections on my credit report. I believe I'm supposed to start with a debt validation letter sent by certified mail return receipt (or fax?). I was going to use this as a template.

http://www.debtclear.com/templates/DISPUTE-AND-DEBT-VALIDATION-REQUEST-FOR-30+-Days.pdf

I've seen a lot of advice on these letters. Some say hand write them them they won't be read by a computer. Others say never sign your name because they forge your signature. Also, I'm not sure what to do after I've sent this letter. What steps to I take with the CRAs to remove the debt? Has anyone had experience with this company recently and what was it like?

[NotTellinYou]

Important fact you haven't mentioned...Is there anything on your three credit reports showing the charge-off collection account?

[harryfpotter]

NotTellinYou,

I'm not sure I understand the lingo. The only other thing on my report is a closed credit card. My report is empty except for that and the collection. It is on Experian and Equifax. I can now see from Equifax that it is four years old and the original account owner was AT&T. It now seems to have landed on all three CRAs.

[NotTellinYou]

If the debt is validyou can offer to pay IF they will pledge in writing to delete it from all three Credit Reports.

If they refuse you have two choices, you can pay it so it shows as paid or wait till 7 year point for it to drop off.  BTW: It's less and less of an impact to your score as time passes.  I have one last derog on my account for A LOT MORE THAN $250 and my scores are in the 700's as I have paid everything since on time.

Good luck!

[polno1234]

these forums are a real good starting point. i would do some research on debt validation when you recieved no dunning notice.  i used a dv letter that pushes that fact along with placing derog on my cr as the initial communication.