Removal of Paid Collections/Charge-Offs -- UPDATE 2/4/16

[dmc917]

UPDATE (in red):

E-mailed and FedExed GW letter and PIF receipt to Midland (Chief Compliance Officer) on a Thursday, received a call from a very nice lady the following Tuesday afternoon informing me that they were deleting the TL from all bureaus and to allow 30-45 days for the deletion.  It was removed the next day!

Tweaked same letter and e-mailed and FedExed with PIF receipt to Credit One (CEO) the next day (Wednesday), no response -- TL removed from all bureaus the following Tuesday!

Further tweaked same letter and e-mailed with PIF receipt to First Premier CEO (while I was home during the east coast blizzard on a Friday), no response the following week, so on Thursday, I e-mailed the same letter to the Managing Officer Business Communications, as well as called and left a vm confirming receipt.  I received an e-mail response confirming receipt of the e-mail and vm and informing me to allow 14 days for account review -- it has been exactly one week and I am still waiting (and checking reports every morning). Fingers crossed!

Let me start by stating that I am constantly learning from this oh-so-special place!  You guys seriously ROCK!!

So, since I started cleaning up my credit reports last March, I am down to only the following 3 baddies:  one paid collections account (Midland for Credit One) and two paid charge-offs (Credit One and First Premier). 

Although my scores have gone up quite a bit over these past ten months (EQ: 589-672, TU: 610-669, EX: 635-681), I was denied a credit card (Chase United Mileage Plus) and pre-approval for a loan (Avant, of all places – jeesh, guys, I was just checking the rate) this week for “recent delinquency,” “collection account” and “charge-offs” (all related to these 3 tradelines).   (However, I was approved for an Amex BCP, so YAY!)  According to my last CCT 3B, I have:  3 late payments; 27 months since last late; and 1 collection account.  (Also, just because I see others sharing, I am at 12% utilization and my AAofA is 2.7 years.) 

I have read many posts and lots of information regarding removing collections/charge-off accounts by way of CRA disputes, CA and OC goodwill letters, FCRA complaints, etc.  It is all a bit overwhelming.  I need clarification/simplification of all that I have read to get rid of these baddies for good -- which is why I am reaching out for help.  If the elders/experts of the community would be so kind . . . specifically, I am looking for: 

What is my first step?  Do I send goodwill letters to Midland, Credit One and First Premier?  If so, to whom do I send the letters (is there a list of names/addresses/e-mail addresses floating around for these companies that I missed) and how often?  Do I dispute with the CRAs hoping that, since the accounts are all paid, the companies won’t bother to respond?  If so, and they do respond, will anything re-age or report more things and make things worse?  The account information reported to the CRAs appears to me to be lacking.  Should I complain/dispute with FCRA?  If so, how?    

Thanks so much in advance!

[RobertEG]

If a dispute is filed without any showing of a specific inaccuracy in what has been reported, there is no need for the CRA to refer to the furnisher for their investigtion and response.  The dispute can be dismissed as lacking a showing of inaccuracy, and thus as being, in the words of the FCRA, "frivolous or irrelevant."

Do you have an actual inaccuracy?  if not, you have no basis for a dispute.

Additionally, the furnisher always has the option of either verifying the information as being accurate as currently reported, or of correcting the reporting so as to overcome any inaccuracy.  Deletion is only required if an actual inaccuracy is asserted, and the accuracy is either not verified or not corrected.

The goal of the dispute porcess is not to penalize furnishers for inaccuracy of their reporitng, but rather to get it corrected.

Complaints to the CFPB are appropriate when the consumer considers there to be a violation of some provision of the FCRA or FDCPA.  Inaccurte reproting is not per se a violation, and a dispute should first be filed prior to filing a complaint with the CFPB.  If the furnisher or CRA has violated some provision of the dispute process, then a complaint may become appropriate.

If there is no inaccuracy in reporting or no violation of the statute, then use of good-will requests are the appropriate procedure for attempting deletion of the repor5ing.

The CRAs do not, in general, support the deletion of otherwise accurate information, as that lessens the value of credit reports they sell.  They have specific policies instrucitng furnishers not to delete based on payment of the debt.

[dmc917]

Thank you very much!  So, I guess I will definitely not be disputing anything.  

Any thoughts or tips on the goodwill process for Midland, Credit One and First Premier (names/e-mail and postal addresses for starters)?

[RobertEG]

Many creditors and debt collectors establish specific internal policies instruction their underlings not to grant good-will deletions based on the consumer havng paid the debt.

That policy stems directly from their agreement in their credit reporting with the CRAs not to delete for that reason.

General good-will requests sent to their standard corresonspence address will thus usually meet the fate of denial based on their internal policy instructions from management.

In such cases, it is usually necessary to get your good-will request onto the desk of a management official who has the discretion to grant exceptions to normal policy.

Thus, you see many requests here in the forum for contact names and numbers of persons who may grant exceptions.

[dmc917]

Understood, and thanks for your responses.

This is exactly the help I am seeking.  If anyone has names/e-mail addresses/addresses for Midland Funding, Credit One and/or First Premier, please post or pm me.  

Thanks a bunch!  

[dmc917]

Anyone?