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How to handle collections accounts

Established Member

How to handle collections accounts

We are trying to clean up our credit in order to get a mortgage in about 10-12 months.

The 3 accounts below appear under collections on my fiancee's Equifax report.  

Q1.)  Stupid question, but I am assuming that these are considered negative factors, right?

Q2.)  Is it possible to negotiate with these collectors in order to make the negative reports disappear from her report?

Q3.)  If yes, can you give me some advice for contacting them?  I mean, I have the contact info, but do I write them and say 'hey, can we give you 30% of the money to make this go away?" 50%? 75%?

(The first two are with the same doctor and collection agency.)

I'd appreciate any advice.

Thanks!

 

COLLECTIONS:

PROFESSIONAL ADJUSTMENT
Agency Address: (Removed)
Date Reported: 08/2016
Date Assigned: 03/2014
Creditor Classification: Medical/Health Care
Creditor Name: (Removed) PHYSICIANS
Accounts Number: 15XXXXX
Account Owner: Individual Account.
Original Amount Owned: $590
Date of 1 st Delinquency: 09/2013
Balance Date: 08/2016
Balance Owned: $191
Last Payment Date : N/A
Status Date: 08/2016
Status: D - Unpaid
Comments: Medical

 

PROFESSIONAL ADJUSTMENT
Agency Address: (Removed)

Date Reported: 08/2016
Date Assigned: 01/2011
Creditor Classification: Medical/Health Care
Creditor Name: (Removed) PHYSICIANS
Accounts Number: 115XXXX
Account Owner: Individual Account.
Original Amount Owned: $306
Date of 1 st Delinquency: 08/2010
Balance Date: 08/2016
Balance Owned: $306
Last Payment Date : N/A
Status Date: 08/2016
Status: D - Unpaid
Comments: Medical


BUSINESS REVENUE SYSTEMS
Agency Address: (Removed)
Date Reported: 01/2012
Date Assigned: 11/2011
Creditor Classification: Medical/Health Care
Creditor Name: (Removed) RADIOLOGY GROUP
Accounts Number: 3757XXXXX
Account Owner: Individual Account.
Original Amount Owned: $254
Date of 1 st Delinquency: 04/2011
Balance Date: 01/2012
Balance Owned: $254
Last Payment Date : N/A
Status Date: 01/2012
Status: D - Unpaid
Comments: Medical


Starting Score (01/01/15): 592
Current Score (09/01/17): 691 (TU), 696 (EX), 704 (EQ),
Goal Score (12/30/17): 740

Message 1 of 10
9 REPLIES
Valued Contributor

Re: How to handle collections accounts

First - EQ is actually the Credit Bureau least lenders use so I'd get whatever is in the other two reports instead of this, just my advice.

Second - Since all 3 are medical and quite a bit old personally I would dispute them with the credit bureaus most likely at least 2/3 will be removed.

Third - As far as your questions 1) Yes they're negative (derogs as they call them). 2) Yes you may negotiate if they aren't removed already by the dispute. I'd go with 50% for negotiating and make sure absolutely sure you get a pay for deletion otherwise it'll still be on your credit report as paid but still show up on your report which is still technically derogatory.

Just my two cents good luck!

Message 2 of 10
Established Member

Re: How to handle collections accounts

Awesome. Thank you!

Starting Score (01/01/15): 592
Current Score (09/01/17): 691 (TU), 696 (EX), 704 (EQ),
Goal Score (12/30/17): 740

Message 3 of 10
Community Leader
Epic Contributor

Re: How to handle collections accounts

In order to dispute with a CRA, you must identify an inaccuracy in the reported information.

Even then, the dispute only requires the correction, verification, or of neither of those can be done, deletion of the inaccurate reporting, not of the entire collection.

 

Are the debts legit and/or the information reported inaccurate in some aspect?

Message 4 of 10
Community Leader
Super Contributor

Re: How to handle collections accounts


Matt4200 wrote:
First - EQ is actually the Credit Bureau least lenders use so I'd get whatever is in the other two reports instead of this, just my advice.

Second - Since all 3 are medical and quite a bit old personally I would dispute them with the credit bureaus most likely at least 2/3 will be removed.

Third - As far as your questions 1) Yes they're negative (derogs as they call them). 2) Yes you may negotiate if they aren't removed already by the dispute. I'd go with 50% for negotiating and make sure absolutely sure you get a pay for deletion otherwise it'll still be on your credit report as paid but still show up on your report which is still technically derogatory.

Just my two cents good luck!


OP is seeking a mortgage in 10-12 months. Mortgage lenders will most assuredly pull all three.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
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SDFCU VISA Secured $250
Discover Secured $200
Message 5 of 10
Community Leader
Super Contributor

Re: How to handle collections accounts


InFLforNow wrote:

We are trying to clean up our credit in order to get a mortgage in about 10-12 months.

The 3 accounts below appear under collections on my fiancee's Equifax report.  

Q1.)  Stupid question, but I am assuming that these are considered negative factors, right?

Q2.)  Is it possible to negotiate with these collectors in order to make the negative reports disappear from her report?

Q3.)  If yes, can you give me some advice for contacting them?  I mean, I have the contact info, but do I write them and say 'hey, can we give you 30% of the money to make this go away?" 50%? 75%?

(The first two are with the same doctor and collection agency.)

I'd appreciate any advice.

Thanks!

 

COLLECTIONS:

PROFESSIONAL ADJUSTMENT
Agency Address: (Removed)
Date Reported: 08/2016
Date Assigned: 03/2014
Creditor Classification: Medical/Health Care
Creditor Name: (Removed) PHYSICIANS
Accounts Number: 15XXXXX
Account Owner: Individual Account.
Original Amount Owned: $590
Date of 1 st Delinquency: 09/2013
Balance Date: 08/2016
Balance Owned: $191
Last Payment Date : N/A
Status Date: 08/2016
Status: D - Unpaid
Comments: Medical

 

PROFESSIONAL ADJUSTMENT
Agency Address: (Removed)

Date Reported: 08/2016
Date Assigned: 01/2011
Creditor Classification: Medical/Health Care
Creditor Name: (Removed) PHYSICIANS
Accounts Number: 115XXXX
Account Owner: Individual Account.
Original Amount Owned: $306
Date of 1 st Delinquency: 08/2010
Balance Date: 08/2016
Balance Owned: $306
Last Payment Date : N/A
Status Date: 08/2016
Status: D - Unpaid
Comments: Medical


BUSINESS REVENUE SYSTEMS
Agency Address: (Removed)
Date Reported: 01/2012
Date Assigned: 11/2011
Creditor Classification: Medical/Health Care
Creditor Name: (Removed) RADIOLOGY GROUP
Accounts Number: 3757XXXXX
Account Owner: Individual Account.
Original Amount Owned: $254
Date of 1 st Delinquency: 04/2011
Balance Date: 01/2012
Balance Owned: $254
Last Payment Date : N/A
Status Date: 01/2012
Status: D - Unpaid
Comments: Medical


Contact the CA for the first two and try to negotiate a PFD. Since they have recently updated removing them should benefit scores.

 

I would not do ANYTHING with the last one. Do not contact them, do not dispute it. Its not been updated in four years, any activity will likely result in an update which will increase its impact on scores. Address it only if the lender asks you to do so.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 6 of 10
Contributor

Re: How to handle collections accounts

If they are successful in removal from CRA, will debt re-surface during the mortgage application process?
Message 7 of 10
Community Leader
Super Contributor

Re: How to handle collections accounts


2ndLife wrote:
If they are successful in removal from CRA, will debt re-surface during the mortgage application process?

Its very possible, yes. Thats why I suggest PFD, rather than trying to dispute them away. If they won't PFD, then settle for as little as possible, to stop the updating.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 8 of 10
Established Member

Re: How to handle collections accounts

That makes sense.

 

Are there some guidelines or a template I could reference for contacting the CA?

 

 

 


Starting Score (01/01/15): 592
Current Score (09/01/17): 691 (TU), 696 (EX), 704 (EQ),
Goal Score (12/30/17): 740

Message 9 of 10
Established Contributor

Re: How to handle collections accounts


InFLforNow wrote:
Awesome. Thank you!
Before doing anything google the HIPAA Letter Process follow it exactly as laid out. If you have problems finding the website or any questions PM me.
FICO 8 Scores Eq 821 Ex 820 TU 841, 178K Available CL, 1% Util

Message 10 of 10