@Anonymous wrote:
Hi I'm new to this. First off I was young and dumb and messed my credit up. Didn't realize that eventually I'd want a house or a newer car. So first off my Transunion score is 542 and my Equifax is 581. I have about $46,000 in debt through Navient/Sallie Mae. Not much I can do about that but pay on it. But I have at fault debt too. I have a auto loan from USAA that I was very inconsistent with up until the beginning of this year. I'm now current on it and expected to pay it off in September. have a USAA American Express card that I ran up to $1,263.29; it defaulted.
I have a Capital One card that I ran to $878.76; it defaulted. I have a First Premier card that I owe $277, it defaulted. I have a Navy Federal Credit Union credit card. I actually didn't default on that. Instead they closed the account and deduct the minimum payment out of my account every month. So that's atleast reflecting positively on my credit report. I contacted all three defaulted accounts through letters to attempt to settle for deletion. I haven't heard anything back from USAA. Capital One has informed me that Portfolio Recovery Associates have brought the debt. First Premier informed me that Central Credit Card Services brought their debt. Only thing you can do with OCs who have sold the debt is send them GW letters asking for deletion of the TL. As far as the new owner if they are reporting you would want to offer them the PFD and if they are not yet reporting you would want to offer them payment in exchange for it NOT reporting.
http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275
http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519
I had a collection from the VA for an overpayment on my Gi Bill. I paid that off but it shows as a paid collection. I wrote a goodwill letter and received a cold hearted 'this is your fault and all you can do is wait for it to drop off' letter. Its actually their incompetence that overpaid it in the firstplace I would continue GW letters to the powers that be at 1 a month until you get the desired result.
Also the biggest thing is my MEFA student loan defaulted. That debt of $7,829 was brought be Zwicker & Associates. They are currently in the process of taking me to civil court even though back in January I set up monthly payment arrangement for the next five years with them they are still seeking a judgement. I'm going to fight the amount owed especially since I deployed to Iraq during my school year and my student loan interest rate remained high and never adjusted for Servicemembers Civil Relief Act. If you are making payments I would file a motion to dismiss the court action unless you are planning on countersuing based on being in the military. Good luck and welcome to My fico 
Anyway I currently make $16.50 an hour working in a warehouse, single parent, my job is our sole income. If I had the money to pay off all my debts I would. I can't afford to put a lot towards everything but I am willing to put something down. I can only try to fix the damage that I made. Like with the sold accounts what should I do with them? They aren't being reported on my credit report yet. Any help or advice would be great.
@Anonymous wrote:Thanks for responding. Well I heard USAA is hard to settle with but I'm willing to do half the debt with them. I read that with the buyers of the debt I should offer 40% of the original debt so I can do that. I'll start writing those letters tonight. The Zwicker & Asociates case is what's killing me at the moment. I literally wrote my congressman, MA AG, CPFB, and last night MEF, the original holder. Our case for Motion for Jusgement is Tuesday. I'm thinking about going to the court house tomorrow and filing a Motion to Vacate. Not sure the fact that I already make payments to them will be successful in court since there is a debt. If anything the fact the debt they are suing me for is incorrect should be grounds alone to dismiss, right? I'm just trying to prevent a judgement and my credit being destroyed for up to possibly twenty years.
You would only offer 40% if its past your states SOL, if its inside the SOL they can still use the courts to get a judgment and its going to take more than that to get them to settle typically 75% to full payment. The amount of the debt is not sufficient grounds for dismissal you would have to argue that in court to get it reduced, what you would file the motion on is you are already making payments and a judgment is not necessary at this time.
@Anonymous wrote:Thank you, what Motion is that? Not a motion to vacate cause there wasn't a judgement set in place yet. Is that a Motion to Dismiss? A motion to dismiss the filing since I've been making consistent payments being debited out of my bank account by Zwicker & Associates. So there's no grounds for a judgement? Should I also mention that the amount is incorrect from the interest building on it during my military activation? Or just stick with the payments are being made? Also they're also maintaining the interest rate during my payments. They brought my student loan and are accuring 6.89% off of it. I would have thought when they brought the debt they brought the total amount that was sold to them not the amount along with interest building onto it.
Motion to dismiss is what you file and argue that you are already making payments.