Help with next steps with USAA & NFCU collections

[Traveltop75]

Hi All,

I need some help with taking the correct steps with 3 collections on my report. I want to pay the collections, but read some where on this site that paying can bring the collections current and restart the clock and will prolong the process of them aging off.

- One collection is $6,700 with NFCU.. I want to pay this, and would like to keep the relationship with this creditor

- 2 collections totalling under $500 with USAA... I also want to pay this, and would like to keep the relationship with this creditor.

What is the best, strategy in dealing with these creditors, with out doing more damage to my score.... I am open to any ideas.

So I have sent out PFD letters to USAA, and will send another to NFCU this week. If the PFD request is unsuccessful... WHat should be my next steps?

- Should I pay them off, and try GW letters or will this just cause more harm.

I also have a Collections with First Premier Bank, and I have been reading on this forum that they can be difficult to work with and donot consider PFD's.

Thank you all !!

[RobertEG]

Monthly updated reporting by a debt collector will only impact score based on FICO seeing the collection as a "new" update for that month.

When they update an unpaid collection, it informs others that the debt remains unpaid, and FICO thus includes that update as an impact in its calcalulation.

Paying will stop any further updated reporting by the debt collector, as they are instructed to cease any updates after the collection is paid and closed.

Thus, while the update to paid, $0 balance may have an effect on scoring for that month, it will terminate further potential updates.

However, NO actions by either the consumer or debt collector, including payment or any other form of reporting, will extend the period for exclusion of the collection from the consumer's credit report.  Credit report exclusion of a collection is based only on one single, date-certain, which is the DOFD on the OC account that preceded the collection.  FCRA 605(c).  Thus, payment will NOT extend the ultimate exclusion date of the collection, which must occur no later than 7 years plus 180 days from the DOFD.

[Traveltop75]

Thank you Robert, I appreciate your input.

So quick update, I mailed out PFD letters to USAA and NFCU last November and I just heard back from USAA. They responded to each letter, by sending me bills of what

I actually owe on each account.. and no mention about doing a PFD. So what are my  next steps in regards to the letters recieved?

I am trying to get a grasp on this PFD process, so I can be sucessful in getting USAA & NFCU to approve my request.

[Anonymous]

I've only had success with GW letters by actually owning my responsibilites by paying my debt.  

[Traveltop75]

Thank you, I was just going to pay them off tomorrow. Didnt think I would have much PFD success with USAA.