My fiance's credit is a total train wreck. He has years-old accounts from various sources (car loans, cable, utilities) that both he and his awful parents (against whom he will not take legal action) opened and did not pay. These have all been sent to collection agencies and his credit score is very low. We are getting married soon and I have taken it upon myself to try to get his credit back on track, including looking at his reports, which he has never done himself. We also receive numerous collection letters from collection agencies servicing these debts.
I have been told by the few original creditors I have spoken to that I must contact the collection agencies servicing the debt to work out payments. I know nothing about credit repair as I have never had these issues and I'm afraid I have taken some steps naively. I have now taken advantages of two different offers to settle debts for lesser amounts, and we often receive other settlements offers. I am now hearing that I should not have paid money to these agencies and this was not in our best interest.
So, I'm wondering, did I make a huge mistake by accepting these settlement offers? Since the original creditors will not deal with us, what would my alternative have been if I wanted to get these collections settled? What steps should I take from here regarding the other accounts and their offers to settle?
It would help if you could provide some more info. get a 3 bureau report
Leave out account numbers but provide
date of first delinquency
others will chime in also if any other info is needed from there we will be more able to help
before you pay the ca's get a pay for delete letter from them. MUST BE IN WRITING OR IT DON'T COUNT
also anything over 7 years from DOFD can be removed by disputing the 3 cra's
Per his credit report:
Placed for collection 12/09 (this is the only date I have to go on)
I responded to a settlement offer and received a Payment Receipt stating "Payment Referenced Above Accepted as Settlement in Full" but no Pay For Delete letter (I never knew to ask for one)
Credit One Bank
Opened 2/08, Close 8/10
Charged Off as Bad Debt
Placed for Collection 2/10
Opened 8/08, Closed 6/10
Charged off as Bad Debt
**I received a settlement offer from a collector of 12 payments totaling half the amount. We made 4 of the payments (automatic draft) only to find out that the account was "sent back" to GMAC and no further payments were taken. I faxed them the original letter/agreement to settle for half and they are "reviewing" it to see if they want to honor the agreement. I feel like we're getting screwed.
Credit One Bank
Placed for Collection 12/10
We also receive letters from DirecTV for $654 and Centurylink for $401, but I don't see any reference to them on his credit report. Both they and Credit One Bank have offered us settlements for lesser amounts through their collectors.