Trying to fix my credit to buy vehicle - what to do about two collections on my account

[technologiq]

I'm looking to buy a new vehicle and need to repair my credit.  The good news is thanks to my most recent tax return I'm getting a refund that allows me to pay ALL credit card type debt (only debt will be current vehicle and house).  My score right now sits around 660.

I have two collections that I don't know what to do with.  I was starting to write up some PFD letters using the canned ones I find around the internet but now I'm reading that I need to perform a 'Debt Validation' but I'm lost on the time frame I need to do this.  See below for the two collections (Pulled from TU):

Collection agency: American Agc

Original balance: $277

Current balance: $602

Status: Not Reported

Date assigned: Sep 30, 2004

Date reported: Jun 02, 2009

Date last active: Not Reported

Date paid: Not Reported

Date closed: Not Reported

Original lender: 10 Pb Pacbell

Type of account: Not Reported

Account holder: Individual

Type of credit: Not Reported

Payment status: Not Reported

Largest past balance: Not Reported

Amount past due: Not Reported

Account descriptions:Not Reported

Collection agency: Collsvcs Nev

Original balance: $124

Current balance: $124

Status: Not Reported

Date assigned: May 24, 2004

Date reported: May 11, 2006

Date last active: Not Reported

Date paid: Not Reported

Date closed: Not Reported

Original lender: 05 Future Finance Company

Type of account: Not Reported

Account holder: Individual

Type of credit: Not Reported

Payment status: Not Reported

Largest past balance: Not Reported

Amount past due: Not Reported

Account descriptions: Not Reported

The second one listed is mine fair and square and I'd be happy to PFD it in full even.

The first one is from a previous employer (now deceased) that used my info to establish phone service and I didn't know about this till after he passed away.  I just want it gone and am freaked out since it shows June 09 as a reported date?!?!

Any advice on how I should move forward here would be very much appreciated.  Is there a chance at all that I could get rid of this stuff in the next ~90 days? 

Message Edited by technologiq on 07-20-2009 08:14 AM

[technologiq]

I'd like to add that its been YEARS since I heard from the CA that has the smaller amount and I have NEVER heard from American Agencies regarding the larger amount.

Checking my TU report it says that the American Agencies "Estimated date that this item will be removed" is 08/2009 which is next month. Do I just wait until then?

Should I send out DV letters to these companies?  Go directly for a PFD? Help!

[JoeBJay20]

If you haven't already, obtain your annual free credit reports from http://www.annualcreditreport.com.  Those reports will come directly from the credit bureaus, and will give you the date of first delinquency, or DOFD.  This is the date that determines when the collection accounts will fall off your credit report, which is 7-7.5 years after DOFD.  If you haven't made any payments since the DOFD, that also determines the starting point for the statute of limitations (SOL).  SOL varies by state, you can find yours in the state resources sticky.  In general, you don't want to DV until the debt is past SOL unless you're prepared to pay in full.  This is because it is possible that a CA will respond to a DV letter by filing suit.   You always want to DV before offering a PFD.  You can DV at any time, if you DV within 30 days of receiving a dunning letter or within 30 days of finding the listing on your credit report (if you didn't receive a dunning letter), then the CA must cease all collection efforts (including credit reporting) until it verifies the debt.  Now there is no timeframe to which the CA must respond to the DV letter, it could be 2 days, 2 weeks, or 2 years, but it must cease all collection activity until it does (if you do it within the 30 day window).

Message Edited by JoeBJay20 on 07-20-2009 12:05 PM

[technologiq]

Thanks for the reply, Joe.  I've got my CRs and the closest thing I see to a DOFD is "Date Placed for protection" which is 09/2004 for the larger debt and 05/2004.  SOL in NV is 6yrs on written contracts and 4 years on open accounts.  Are either of these even past the SOL?

If I ask American Agencies to validate their Collections wouldn't it show (if I ask for signature or agreement) that I was not the person to set this up in the first place?

What are my options if the SOL is not past? 

[JoeBJay20]

Did you get them directly from the burueas, either through their individual sites or through annualcreditreport.com?  Those reports will list either the date of first delinquency (EQ) or approximately fall off date (TU and EX), from which you can calculate the DOFD as being 7-7.5 years earlier than the drop off date.  Reports like those bought here or from other third parties like CreditCheckTotal and True Credit won't list the DOFD, which is why it's imperative to get them directly from the bureaus.  I've never seen "Date Placed for Protection" on a credit report.  You could alternatively contact the OCs directly and ask when did you last make a payment.  

It looks like the OC for the first account is PacBell (AT&T), so I'm guessing that was a phone bill.  The SOL on phone debts is two years per federal law, US Code Title 47 Section 15, as federal law supercedes state law.  The second one looks like some sort of finance company, which would fall under written contracts.  

[technologiq]

Joe,

I did pull them directly from the bureaus.  TU is the only bureau that shows the American Agencies (larger balance) one.

Equifax shows 03/2003 for DOFD for my smaller balance one - so I should do a DV letter - yes?  This is past any SOL.

The transunion report PULLED from transunion does not show a DOFD on the larger debt.

[JoeBJay20]

Yes, TU and EX don't show DOFD, but they do list the drop off date, and you can back calculate the DOFD from it.  It looks like both accounts are past SOL, so go ahead and DV those accounts.  Avoid those long form letters you'll find on here, the letter can be as short as:

Upon obtaining my credit reports, I found this account listed by your company claiming I owe a debt.  In accordance with FDCPA Section 809, I am requesting validation of this debt.  

Send it certified mail with return receipt requested (CMRRR). 

[Anonymous]

I would strong suggest that you add a statement that requires all communication to be by mail, and no phone calls.

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JoeBJay20 wrote:

Yes, TU and EX don't show DOFD, but they do list the drop off date, and you can back calculate the DOFD from it.  It looks like both accounts are past SOL, so go ahead and DV those accounts.  Avoid those long form letters you'll find on here, the letter can be as short as:

Upon obtaining my credit reports, I found this account listed by your company claiming I owe a debt.  In accordance with FDCPA Section 809, I am requesting validation of this debt.  

Send it certified mail with return receipt requested (CMRRR). 

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[JoeBJay20]

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@Anonymous wrote:

I would strong suggest that you add a statement that requires all communication to be by mail, and no phone calls.

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@JoeBJay20 wrote:

Yes, TU and EX don't show DOFD, but they do list the drop off date, and you can back calculate the DOFD from it.  It looks like both accounts are past SOL, so go ahead and DV those accounts.  Avoid those long form letters you'll find on here, the letter can be as short as:

Upon obtaining my credit reports, I found this account listed by your company claiming I owe a debt.  In accordance with FDCPA Section 809, I am requesting validation of this debt.  

Send it certified mail with return receipt requested (CMRRR). 

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Right, forgot about that part.  But avoid any language like cease and desist, as they may comply by immediately filing suit.  

[technologiq]

You guys have been great.  I'm going to put the DV letters together today and send them out.  I'll update when I get a response.  Thank you so much!