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PFD letter, check cashed (PAYPAL/GECRB)

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WillF360
Regular Contributor

PFD letter, check cashed (PAYPAL/GECRB)

Hey Fico Family, I have had a Paypal tradeline haunting me.  I do not remember ever opening the account, so I sent them a letter with a check attached to it, basically to the extent of "I don't acknowledge this debt it mine, don't believe it is, but am willing to pay it off to remove it from my credit file.  If you agree to cash the check, you are agreeing to remove the tradeline for all agencies who you report to.." (vaguely worded here of course, it was much better crafted).  

 

Fast forward to 26 days ago, they cashed the check.  Had a refresh of my scores today, and it's still showing on all 3 reports. 

 

IF they do not remove it, do I have any recourse?  Goodwill possibly?  What are your thoughts?  I was getting nowhere with calling to "verify" the debt, and any time I DV'ed it, it came back "verified".  Once this is off, I'm good to go on buying a house.  It just stinks that something that I have no clue what it is, or what it was used on, etc, is keeping me and the family from buying a home. $300... Wow. 


What are your thoughts? 


In the Garden since 9/15/13... Goal Date 4/15/14 (WISH ME LUCK)
Closed on First Home 9/13/2013: USDA RURAL HOUSING
Lender Pull 7/25- EQ 673, EX 693, TU 670
Credit Card Approvals: 9/15- Discover It $4500; Chase Freedom $3500; Amex Blue $5000
Goal Score: 720 | Starting Scores (2/12): EQ 493, EX 521, TU 463
Message 1 of 12
11 REPLIES 11
guiness56
Epic Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)

I think you mean you disputed it.  A DV is a letter sent to the CA requesting debt validation.

 

The letter, along with the check, could have been looked at as a restictive endorsement, which in most states are not binding.

 

Either that, or it just has not updated yet.  Is it showing paid?

 

Who were you calling to verify the debt.

Message 2 of 12
nicholasyud
Valued Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)

Did you get a copy of your check and letter you sent to them ?? Did you sent them by CMMR ? Get them all in one folder and wait for their letter or call their direct line and speak to whoever in charge of this specific activity. Ask them to confirm everything and to report an accurate account. Cross my finger for u.

Starting Score: 560
Current Score: ?
Goal Score: 800
Message 3 of 12
DaBears
Senior Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)


@nicholasyud wrote:

Did you get a copy of your check and letter you sent to them ?? Did you sent them by CMMR ? Get them all in one folder and wait for their letter or call their direct line and speak to whoever in charge of this specific activity. Ask them to confirm everything and to report an accurate account. Cross my finger for u.


They do not have to respond to a DV they just have to stop collection activity until they investigate. There is no law stating they have to confirm or talk to the consumer in regards to the debt.

Message 4 of 12
WillF360
Regular Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)

Hey guys, sorry, I needed to be more clear I suppose.  Still relatively new to the repair process.  I basically asked for anything showing what the debt was in reference to.  I sent a letter to the address on file, and was not able to receive a response.  I sent letters to the Credit Bureau's asking for the same, they just came back that the debt was verified.  I was really unsure of what to do next, so I sent the letter, I still have a copy, as well as a copy of the check.  They e-cashed the check, so no receipt was available. I have the verification from the bank that it was "cashed".  

 

I figured as long as I had a letter stating "if you cash this, then you agree to delete within 30 days" would be pretty binding.  I don't know where to go.  Speaking with a mortgage officer, he's telling me that if that were removed, then we'd have no problem getting a loan.  This is pretty disheartening that a debt from 2009, for $300, that I have no earthly idea what it was for, is keeping us from getting a home. 


In the Garden since 9/15/13... Goal Date 4/15/14 (WISH ME LUCK)
Closed on First Home 9/13/2013: USDA RURAL HOUSING
Lender Pull 7/25- EQ 673, EX 693, TU 670
Credit Card Approvals: 9/15- Discover It $4500; Chase Freedom $3500; Amex Blue $5000
Goal Score: 720 | Starting Scores (2/12): EQ 493, EX 521, TU 463
Message 5 of 12
WillF360
Regular Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)

Hey guiness56, thanks for chiming in.  It is updated as "paid" showing 0 balance.  BUT... It's also showing Paid, Zero Balance, Transferred to another agency which makes no sense.  It was showing as Charged Off, 120 days late, and reporting 120 days late EVERY month.  43 consecutive 120 day lates reported. It was killing my credit.  


In the Garden since 9/15/13... Goal Date 4/15/14 (WISH ME LUCK)
Closed on First Home 9/13/2013: USDA RURAL HOUSING
Lender Pull 7/25- EQ 673, EX 693, TU 670
Credit Card Approvals: 9/15- Discover It $4500; Chase Freedom $3500; Amex Blue $5000
Goal Score: 720 | Starting Scores (2/12): EQ 493, EX 521, TU 463
Message 6 of 12
DaBears
Senior Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)

If your LO is requesting that TL to be deleted after the fact it is now showing "paid" I would go with another lender. 

Message 7 of 12
guiness56
Epic Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)


@WillF360 wrote:

Hey guiness56, thanks for chiming in.  It is updated as "paid" showing 0 balance.  BUT... It's also showing Paid, Zero Balance, Transferred to another agency which makes no sense.  It was showing as Charged Off, 120 days late, and reporting 120 days late EVERY month.  43 consecutive 120 day lates reported. It was killing my credit.  


I think I need some clarification lol.  Who is reporting, the OC or a CA?  If it is the OC they are allowed to report lates every month until it is paid.  It will also continue to report as a paid CO with all of the lates.

 

What concerns me is the transferred to another lender.  If that is the OC account and they sold the debt, it was illegal for them to accept any type of payment from you as they no longer own the debt.

 

Is there a CA reporting also?

Message 8 of 12
WillF360
Regular Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)

Nope. Oc is the only one who has ever reported.

In the Garden since 9/15/13... Goal Date 4/15/14 (WISH ME LUCK)
Closed on First Home 9/13/2013: USDA RURAL HOUSING
Lender Pull 7/25- EQ 673, EX 693, TU 670
Credit Card Approvals: 9/15- Discover It $4500; Chase Freedom $3500; Amex Blue $5000
Goal Score: 720 | Starting Scores (2/12): EQ 493, EX 521, TU 463
Message 9 of 12
guiness56
Epic Contributor

Re: PFD letter, check cashed (PAYPAL/GECRB)

Ok.  Well, OCs usually won't do PFDs.  I don't know why, they aren't as easy as a CA to get to delete something.   And their reporting is correct.

 

Like I said above, they may have taken your letter as a restrictive endorsement, which isn't binding, and just cashed the check.  Now that it is paid, start sending GW letters to see if they will delete the TL.

 

It may happen anyway, it could just take some time.

Message 10 of 12
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