09-06-2011 01:38 PM
OC was The Gap/GECC for $1099. This was charged off in 2008. CA offered me a settlement for $550, which I paid over six installments. Final payment was in July 2011. Last week I saw that the CA was still reporting a $706 balance at 120 days late on my credit report. I contacted the CA and within hours she closed the account and said she'd report it to the credit bureaus on Friday (the 2nd) as paid collection/settlement.
Well, I got a score alert yesterday that my score actually went DOWN a few points and this was the only new activity on my report. I looked and the "current status" was still listed as 120 days late even though there was now a $0 balance. I don't understand why the score would go down, but it seemed that this derogatory current status was the culprit. I contacted the CA again today and asked if they could reflect the on-time payments I made in the current status field. She responded and said that was just how things get reported to the bureaus but that she could remove the credit line if I wanted her to. She made sure that I understood the credit line with the OC would still remain on the report, but she'd be happy to remove theirs. I told her to please do that. She said the change would go out this Friday.
Will removing this collection account help my score? I've paid off all but two credit cards over the past year. I'm SO close to being free of this CC debt. I had several charge offs back in 2008 (divorce and unemployment), and I've worked very hard this past year to pay it all off.
LOVE these boards, btw. You all give great advice!
09-06-2011 01:55 PM - edited 09-06-2011 01:55 PM
Congrats! What you got is a successful GW. A PFD is a written agreement you'd get between you and the CA prior to paying (I'll pay $x in exchange for deletion and write back on your letterhead agreeing to the terms....well, a little more involved but you get the idea).
Good thing they are deleting...the drop could be due to the CA updating and that came as a result of the payment. In terms of FICO scoring, it doesn't matter if you owe $0 or $10,000, the damage is equal to your score.
ETA...are you open to sharing the CA's name?
09-06-2011 03:31 PM
Agree with llecs, sounds like a successful GW request. Its kind of shocking for the CA to offer the deletion of the collections account, must be nice. I wish the CA im trying to get rid of would do that. Congrats!
09-27-2011 10:08 AM
Sorry for the delay, but I wanted to make sure the TL was actually deleted from my CR before I shared the company info with everyone. I just pulled my CR and yes, the CA did remove their TL as promised and my credit score improved a bit as a result.
The CA that I worked with was Security Credit Services, based in Oxford, MS.
They never answer their phone, so I ended up emailing them. They responded via email very, very quickly. By quickly, I mean often within 30 minutes. They were very professional over email and followed through with everything they said they would do for me.
Good luck to anyone who has an account with them, and I hope this helps!