Citibank is reporting an unpaid balance of 824 on my credit report. I have been disputing this account for a year and a half and it always comes back validated. In their last letter they pretty much told me 'screw off.. dont contact us anymore, contact this CA'... the contact information was wrong but after some digging, I found them. I called to verify that the debt was with them and suprisingly they were very nice. I got their address. I did not validate that the debt is mine. I have called the CBs and they do nothing. I am tired of this debt. After doing a rapid rescore, my score will go up 75 points with this being maarked with a 0 balance and paid in full, so I am actually going to try and settle it. Im not even reaching for a PFD at this point....
I would like to offer a 20% settlement for a PAID IN FULL/0$ balance marking on my report, but the OC is reporting on my report, NOT the CA. I started to draft a letter but then thought that maybe I am opening myself up to them reporting to the CBs?
what should I write? should my offer ask them report to the OC or should I still include the CBs.. I have not called the OC and dont want to
Here is what I have so far
Dear American Recovery Service Incorporated:
I am sending you this letter for the above-referenced account. I am willing to pay a 20% settlement of $164.56 if you agree to immediately delete the account from the credit reporting agencies (namely Equifax, TransUnion and Experian, if applicable) that you have reported to, and validated this account. My sole purpose is to get this item removed from my file. This letter should not be interpreted as recognition of the debt or acknowledgment of liability for the debt. If this account is not being reported to the credit reporting agencies it is an expectation that if you accept the terms of this settlement, you will correspond with the original creditor (CITIBANK, N.A.) that this account has been PAID IN FULL with a $0 (zero dollar) balance.
If you accept the terms of this agreement, the certified amount of $164.56 will be sent to your collection agency provided there is complete deletion of any reference to the debt from my file on all the credit bureaus that you have reported to, and the debt is validated. Once again, correspondence must be sent to CITIBANK N.A., that this file is paid in FULL
Your agency should delete all information regarding the account from my credit files within 10 business days from the receipt of the payment, as mentioned in this agreement. The terms of this agreement will not be discussed with anyone but the original creditor. No third party, other than CITIBANK N.A. will be informed if contacted and no acknowledgment of the debt, any kind of payment, or settlement will be discussed if I am contacted by the Reporting Agencies. Following the acceptance of the agreement, please prepare a letter on your company letter head unambiguously agreeing to the aforementioned terms and conditions and have it signed by your agency's authorized signatory. This letter will imply a legal contract, enforceable under my state law.
Please communicate regarding this account to the address mentioned below."
Please help me with my language, and mess ups, or whatever.. I am trying to buy a house in 2 months. Thank you so much!
Is it reporting as a chargeoff with a balance with the OC, or a unpaid collection with a balance?
Yep it very well may help your score. Not sure if 75 points but it is possible since it's reporting utilization of maxed out/over limit and probably affecting utilization on your overall revolving usage portion.
Make sure that the CA does report to the OC. The settlement offer sounds good to me and of course I wouldn't mention a mortgage to anyone (OC or CA) ever because why should they accept less than 100% if they know you need the score boost, so you've written the language well to not agree that the debt is legit but you'll make a payment in exchange for full payment notation.
Just curious if you have any mortgage inquiries on your CRs lately?
You can make a pay for not reporting offer to the debt collector, but the debt collector cannot agree to deletion of credit reporting made by the creditor. Thus, any reference to deletion of currrent reporting is not proper in a negotiation with the debt collector.
Additionally, the letter refers to a request for debt validation. A DV request should not be included in a contract offer.
If your DV is timely, it imposes an automatic cease collection bar on the debt collector, which precludes any negotiations with you on any settlement or pay for not reporting offer.
You either request a DV or negotiate. Not both.