Rebuilding Your Credit

[sweetblablag]

Hi Everyone,

Maybe someone can help me with this query. I've gone through the posts, however I am a bit confused.

I have a collection account with Asset Acceptance for the amount of $900 (AA added interest, original $603) that is due to come off my CR in June 2013 (DOFD June 2006 with AMEX). However, I'm applying for grad student loan in the next month and their rules have recently changed and I can no longer have a collection account in order to receive credit. It has to be paid, payment arrangements, dispute settled, or noted error.

I disputed Asset Acceptance in June 2011 with a verification letter (never heard back, was living in GA) and through the dispute process on all 3 CA (dispute noted on my accounts, but not removed). I'm passed the SOL for the state of GA and original state when first deliquent, CA. I spoke with AA once last week and they will not do a pay for delete.

- I currently live in the UK (as of 9/2011), is it right to assume the CA has no right to collect from me as I live internationally?

- If I paid in full or settled the amount, would it come off my CR 7 years from the date of payment? Or 7 years from the DOFD?

- Is it better to Pay in Full or Settle? Or does it not matter as the CA won't do pay for delete?

- Should I resend the verification letter? If I don't receive a response, what are my next steps and how long will it take?

Thanks for your help!

[AZHeather]

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sweetblablag wrote:

Hi Everyone,

Maybe someone can help me with this query. I've gone through the posts, however I am a bit confused.

I have a collection account with Asset Acceptance for the amount of $900 (AA added interest, original $603) that is due to come off my CR in June 2013 (DOFD June 2006 with AMEX). However, I'm applying for grad student loan in the next month and their rules have recently changed and I can no longer have a collection account in order to receive credit. It has to be paid, payment arrangements, dispute settled, or noted error.

I disputed Asset Acceptance in June 2011 with a verification letter (never heard back, was living in GA) and through the dispute process on all 3 CA (dispute noted on my accounts, but not removed). I'm passed the SOL for the state of GA and original state when first deliquent, CA. I spoke with AA once last week and they will not do a pay for delete.

- I currently live in the UK (as of 9/2011), is it right to assume the CA has no right to collect from me as I live internationally?

- If I paid in full or settled the amount, would it come off my CR 7 years from the date of payment? Or 7 years from the DOFD?

- Is it better to Pay in Full or Settle? Or does it not matter as the CA won't do pay for delete?

- Should I resend the verification letter? If I don't receive a response, what are my next steps and how long will it take?

Thanks for your help!

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Have you tried dealing with Amex directly?

[sweetblablag]

Yes and the debt is too old, they have charged it off, and only refer me back to the CA.

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AZHeather wrote:

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Have you tried dealing with Amex directly?

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[AZHeather]

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sweetblablag wrote:

Yes and the debt is too old, they have charged it off, and only refer me back to the CA.

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AZHeather wrote:

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Have you tried dealing with Amex directly?

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[RobertEG]

First, with a DOFD of 6/2006, the CR exclusion period wont expire in 6/2013.  The period for exclusion of collections is 7 years plus 180 days from DOFD, not 7 years.

FCRA 605(c).  CR exclusion would be after 12/2013.  Date of payment has nothing to do with CR exclusion.  It is based solely on the date-certain DOFD.

As for skirting legal action by residing abroad, no, that wont prevent them from bringing legal action.  It might make it a bit tough for them to serve notice on you, but some jurisdictions permit service by notice, such a publication.  I suggest you check out your state civil procedures for those requirements.

PIF vs. settling for less has advantages and disadvantages.  The obvious advantage is saving $$s.  Either way, its status will be the same....paid. 

However, by settling for less, they can post a special comment to your CR stating that fact, and thus notifying all others reviewing your CR that, in the past, you did not fully pay all of a debt that you accrued.  Not a favorable comment.

AS for your "dispute" asking for verification, I assume it was a request for debt verification, and not a dispute of accuracy of reporting under the FCRA.

If it was a DV, even if timely, there is no required period for response.  Their "penalty" for not responding is that they must cease collection activities until such time as they provide the requested debt verification.

You state that you spoke with the debt collector last week.  If you have a pending, timely DV, they should have refused to even talk to you.  You placed them under an automatic cease collection bar by sending a timely DV, thus barring negotiations of any kind.

There really is no need to send another DV.  The first one determines their date of bar, and you should not really be communicating with them. 

Your DV may be a hindrance if you want to start PFD negotiations.

[drkaje]

I've never seen a case of American Express actually selling a debt until now.

[proudnavymom]

I recently settled an account with Asset Acceptance.  They refused to do a PFD, but I did get them to agree over the phone not to report it as settled for a lesser amount.  It is listed simply as a paid collection.  I was kind of nervous about whether they would do what they said without anything in writing but they did.  I know it doesn't make any difference in FICO scoring, but I thought it might look more favorable if someone were to do a manual review of my CR.  I have recently sent them a GW letter asking them to delete, but so far nothing.  I am not giving up though.

[AndySoCal]

Besides the additonal comment regarding the account being settled. here is another thought.  I would pay it in full one so the comment would not be added secondly if you decide you want another AMEX card a settled account will not help.

[sweetblablag]

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RobertEG wrote:

First, with a DOFD of 6/2006, the CR exclusion period wont expire in 6/2013.  The period for exclusion of collections is 7 years plus 180 days from DOFD, not 7 years.

FCRA 605(c).  CR exclusion would be after 12/2013.  Date of payment has nothing to do with CR exclusion.  It is based solely on the date-certain DOFD.

As for skirting legal action by residing abroad, no, that wont prevent them from bringing legal action.  It might make it a bit tough for them to serve notice on you, but some jurisdictions permit service by notice, such a publication.  I suggest you check out your state civil procedures for those requirements.

PIF vs. settling for less has advantages and disadvantages.  The obvious advantage is saving $$s.  Either way, its status will be the same....paid. 

However, by settling for less, they can post a special comment to your CR stating that fact, and thus notifying all others reviewing your CR that, in the past, you did not fully pay all of a debt that you accrued.  Not a favorable comment.

AS for your "dispute" asking for verification, I assume it was a request for debt verification, and not a dispute of accuracy of reporting under the FCRA.

If it was a DV, even if timely, there is no required period for response.  Their "penalty" for not responding is that they must cease collection activities until such time as they provide the requested debt verification.

You state that you spoke with the debt collector last week.  If you have a pending, timely DV, they should have refused to even talk to you.  You placed them under an automatic cease collection bar by sending a timely DV, thus barring negotiations of any kind.

There really is no need to send another DV.  The first one determines their date of bar, and you should not really be communicating with them. 

Your DV may be a hindrance if you want to start PFD negotiations.

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Thanks RobertEG, very useful. 

By stating "Date of payment has nothing to do with CR exclusion.  It is based solely on the date-certain DOFD" ....Does this mean after 12/2013 this collection account can come off my CR regadless that I paid in 2012?