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Member
Sexyblue
Posts: 10
Registered: ‎10-14-2012
0

Fair Collections and Outsourcing / settlement and affects on CRA

Hello All,

 

I have not been able to get this open collection removed from any of the CRA's. The CO company keeps offering me a settlement for 50% of the balance, which is $1500.00. They will not do PDF either. The CO keeps updating every year, and shows as part of my utilization. The apartment company will not deal with me at all on this matter. This is the only collection I have reporting. Other than this CO I have a good credit history with no late payments on any of my credit cards.

 

However, I keep getting turn down for CLI. Current limits - GERCB, Amazon ($600) / Walmart ($1350.00)  Macy's ($1200) / Bloomingdale's ($1000.00). I get denied letter stating recent collection activity. What's interesting is that this collection was on my CRA's when I was approved for the accounts above.

 

My friend a manager at my credit union stated she can approved my cc and auto request, however the CO would have to below $1000.00. Also, I applied for CHASE FREEDOM and was denied because of inquires and new accounts not being open for 1 year, the CHASE uw rep stated.  

 

1. My question is should I take the settlement, and If I do will the CO stop updating my credit report.?

2. If it's paid will underwriter's view my file more favorably?  

3. Since I am NY will if come in 5 years (2016) if paid? 

 

 

FAIR COLLECTIONS AND OUT  

 Placed for Collection: 11/22/2011 Responsibility: Individual Account Account Type: Open Account Loan Type: COLLECTION AGENCY/ATTORNEY Balance: $3,000 Date Updated: 03/18/2013 Last Payment Made: 08/08/2011 Original Amount: $3,000 

 

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Fair Collections and Outsourcing / settlement and affects on CRA

Hi and welcome to the forums.

 

1.  Paying in full is always better than settling.  However, if you settle try to get them to report as PIF.  Even paid they can continue to report each month.

 

2. If paid in full yes, UW tend not to like settled, depending on the UW.

 

3. That could be a tough one because of the CRAs.  I know the law says 5 years for paid collections/COs and they do not differentiate between PIF or settled but, the CRAs read it their own way and say it has to be PIF and not settled.  Depends on the CRA also.  Usually EX won't.

Contributor
jeremyd82
Posts: 88
Registered: ‎08-17-2012
0

Re: Fair Collections and Outsourcing / settlement and affects on CRA

I have tried PFD with no success with these guys also I guess I will have to settle
8/2012 485 FICO
2/2013 611 FICO
6/2013 602 FICO

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Fair Collections and Outsourcing / settlement and affects on CRA

[ Edited ]

Sexyblue wrote:

Hello All,

 

I have not been able to get this open collection removed from any of the CRA's. The CO company keeps offering me a settlement for 50% of the balance, which is $1500.00. They will not do PDF either. The CO keeps updating every year, and shows as part of my utilization. The apartment company will not deal with me at all on this matter. This is the only collection I have reporting. Other than this CO I have a good credit history with no late payments on any of my credit cards.

 

However, I keep getting turn down for CLI. Current limits - GERCB, Amazon ($600) / Walmart ($1350.00)  Macy's ($1200) / Bloomingdale's ($1000.00). I get denied letter stating recent collection activity. What's interesting is that this collection was on my CRA's when I was approved for the accounts above.

 

My friend a manager at my credit union stated she can approved my cc and auto request, however the CO would have to below $1000.00. Also, I applied for CHASE FREEDOM and was denied because of inquires and new accounts not being open for 1 year, the CHASE uw rep stated.  

 

1. My question is should I take the settlement, and If I do will the CO stop updating my credit report.?

2. If it's paid will underwriter's view my file more favorably?  

3. Since I am NY will if come in 5 years (2016) if paid? 

 

 

FAIR COLLECTIONS AND OUT  

 Placed for Collection: 11/22/2011 Responsibility: Individual Account Account Type: Open Account Loan Type: COLLECTION AGENCY/ATTORNEY Balance: $3,000 Date Updated: 03/18/2013 Last Payment Made: 08/08/2011 Original Amount: $3,000 

 


Fair Collections and Outsourcing is virtually impossible to work with. They will not do PFD, I have not see one single instance on the entire interwebs of them doing a PFD, and or being easy to remove. I have also seen no success with GW

 

I happened to have success with a direct dispute, because they were showing an incorrect DOFD for the account. My judgement that led to collections was an entire year before the DOFD they were claiming. I sent them a direct dispute, and they responded saying I was incorrect and they will not make any changes.

 

I forwarded their letter of reponse to the CRAs, along with my proof of the incorrect DOFD, and 2 CRA's removed it. I don't think the CRAs were required to do this, but they do have ultimate descretion on what to remove.

 

It comes off for good in 14 months, and I just don't wanna fight anymore, so I have left it alone on the one CRA.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
New Member
preacherk
Posts: 3
Registered: ‎03-29-2013
0

Re: Fair Collections and Outsourcing / settlement and affects on CRA

If you PIF you should if you are trying to have it removed based on the NY 5 year rule. I am battling with EX now because they won't remove. I have filed a complaint with AG and FTC to try to get them to remove it. TU removed on their own and EQ has incorrect DOFD so I have to get that corrected but I got the feeling it would be a battle too. I just started working in my husbands credit so I will PIF to avoid the delays and hassles next year
Member
Sexyblue
Posts: 10
Registered: ‎10-14-2012
0

Re: Fair Collections and Outsourcing / settlement and affects on CRA

Thanks all for your repsonses.

 

I decided to leave it alone for right now. I am not making any major purchases (mtg or auto loan) in the next 2 years. My brother has a judgement from 2009, and he has been able to get cards from AMEX, CITI, PENFED, DCU and other prime banks. Having said that, I going rock out with my current cc and my new discover it card.

 

I was just told by Macy's/ Bloomingdales UW, that once my score hits 700 they will increase my line. In the mean time they she stated that she will give me a 2500 on majoir purchase and 3000 on jewley/china and furniture, on both cards.  


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