I am brand new to this forum and just yesterday began with credit clean up after a discharged bankruptcy in 2005 and unfortunate lay off for almost the past two years. My first question is this: I have alot of accounts that are on my report that are showing as charged off and derogatory but I do not have record of these accounts. I mailed in disputes for these accounts to all 3 of the CRA's. Is it reasonable to expect the CRA's to do a throrough investigation or am I being naive in expecting this derogatory accounts to be deleted?
My other question is this: I have 8 collection accounts ranging in age from 5 yrs to 1 yr of age. I'm not quite positive of the amount that I do rightfully owe so I'm wondering if I should dispute/validate them before I send letters to the CA asking for PFD. The second part of this question is that I've been doing alot of research on PFD and have seen the majority of sources advocate an offer of no more than 25% of the debt owed with the thought process being that these CA are have only paid 7 cents on the dollar at most for these old accounts so even collecting 25% is a handsome profit for the CA's. Any thoughts or people who have had the same problems/experiences?
Anything information would be much appreciated!
In my opinion, you get a tthird rate investigation when you dispute through a CRA. They use something called their automated e-Oscar process to record your dispute, which essntially dilutes the reasons for your dispute to a three-digit dispute code. They can add a short comment, but they rarely forward all of the suppoirting information you provide on to the creditor/CA you are disputing. The CRA is just an unnecessary middle-man in the dispute process.
As of 7/1/2010, consumers can now totally bypass the CRA, and use the new direct dispute process, thus disputing directly with the party who reported the disputed information to the consumer credit file. See FCRA 623(a)(8) and 16 CFR 660.4 That cuts out the CRA, and ensures that all relevant information goes directly to the party who is the subject of the dispute.
I would never dispute through a CRA.