How to handle collections

[fixinup]

Hello all, newb here.. I'm in the process of rebuilding my credit... my first step is to pay down my secured credit card to 9% util. and then submitting a GW letter to remove the three 30 day late payment remarks from my credit report after 6 months of timely payments.  After that step i would like to work on the 2 collections account on my report: ATT $959 and Cable $166. ATT spans across all 3 CRA's and cable is only on EX.

My first question before payng them off is regarding the Date Opened under my ATT collections account. Does that date refer to the date that my account was opened with ATT or the date that it was opened with the collections agency.  According to my collections report my ATT account was opened 08/01/2011.  In reality the account been closed since at Oct. 2010 and it was opened maybe in 2007.  So exactly what does the open date refer to.. and if its referring to the date that I opened my ATT account, is this something that I can dispute and refute with the collections agency since their reported opening date is blatantly wrong.

Pending that answer.. whats the best way to handle paying off these acounts and then having them removed from my credit report.  Should I go through the OC or CRA.  

Thanks in advance for any info.

[hoping2rebuild]

If it were me I would offer PFD to the CA's

The 8/2011 opening date it the date the collection agency got the debt

[IOBA]

1.  GW letter for lates - definitely get a good 6 months under your belt of on time payments.   Who is the secured card with?

2.  ATT collection.   When did you miss your fist payment?   When did it get turned over to collections?

3.  Cable collection.  When did you miss your payment on that account?  When did it go to collections?   Who is the cable company?   And what is the collection for (equipment or past due bill)?

[fixinup]

Thanks hoping2rebuild, I'll try to PFD the CA's... I just figured it may be easier to PFD the OC since it is their money.

[fixinup]

IOBA

1) the secured is with First Premier... I already know that getting them to budge on anything is like trying to pull teeth from a lion.. just hoping my length of credit, opened in 2005, and the 6 month leadway before I submit the GW will help.  

2) As far as ATT I closed that account in 2010 so I don't recall when I fell behind and decided to switch, I think I switched to TMO sometime early to mid 2010.  

3) The cable company is Cablevision.. the account was closed earlier this year, maybe in April, and the collections is for both late payment and equipment, I still have the equipment so the $166 accounts for the $100 deduction for equipment ($266 with equipment).  

Sorry I can't give more info regarding the first missed payments, my life was kind of crazy from mid 2010 to early 2011, just now trying to reign things in.  

As far the CA turnover dates, if the date opened on the credit report refers to the date that they got the accounts then ATT was turned over 08/01/2011 and Cablevison was turned over 07/01/2011

[RobertEG]

Look at a "collection" as a separate "account," totally apart from your account with the OC.

You dont actually have an "account" with a debt collector.  A collection "account" is solely a reporting by the debt collector that is between themselves and the CRA.

Debt collector reporting is maintained by the CRA in a totally different segment of your credit file, and while some of the terminology might be the same,their meaning is very different.  A date opened for a collection account is reportable by the debt collector as the date that they received collection authority.  It is meaningless to any dates in the OC segment of your file.

As to who to offer a PFD to, in my opinion, it can vary.  When an account goes to collection, there are usually prior reportings by the OC of escalating levels of delinquency, from a 30-day late up through 60/90/120+ and then possible a charge-off.  Those could, cumulatively, be doing as much, if not more, damage to your score as the separate reporting of the collection.

Most consumers will choose to PFD the debt collector, even if the OC still owns the debt, usually without regard to score impact, because a collection looks very bad to future, prospective creditors.  An excellent reason for putting collection removal above that of OC reporting deletion.

However, in the event a debt collector refuses to accept a PFD, you stil may be able to garnish some score improvement by going back to the OC, and offering them payment in exchange for deletion of their negative reporting.  It wont result in deletion of the collection, but if accepted, could garnish some points by the removal of a boat load of OC derogs.  That is, of course, contingent on the OC still owning the debt.

[fixinup]

Thanks RobertEG

If I'm understanding you correctly I should concentrate my efforts on PFD with the debt collectors to remove the collections reports if I in turn pay off my balances.  Sounds like a plan, just not sure if I stand any luck with AFNI judging by reports on these forums.  Another stategy I'm looking with them is paying the debt and then approaching them with a GW.

As far the debt collector for cablevison, that is with Sunrise Credit Services.. I haven't looked into success story with them yet.

As far as the OC's I guess I should deal with them after I see what can be done with the CA's.. Does this sound like the best course of action.

Thanks