Professional Collections PDF Experience?

[Anonymous]

Disputed 3x, DV'd, came back with statements (though the DOFD is wrong).

I'd like to get em off now if possible.

Original balance they saw was $1,300 (doubt it), up to $1,800.

TO my knowledge, this means they bought it for around $50

I made three payments of $50 last year (no, does not re-set SOL).

Haven't heard from them in months.

Has anyone tried a PFD with them? I'm hoping for $500 they will do so.

I think it will help since the only other baddies are 7 yo Cap1 CO and 4 and 5 year Bally COs.

[RobertEG]

IMHO, they may accept  your reduced payment offer to close the account, but once you started paying on it, you acknowledged its legitimacy, and thus I would not expect them to accept a PFD as a term to accept your payment of the account. 

[Anonymous]

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@RobertEG wrote:

IMHO, they may accept your reduced payment offer to close the account, but once you started paying on it, you acknowledged its legitimacy, and thus I would not expect them to accept a PFD as a term to accept your payment of the account.

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Hmm not sure how it would change things for them. *Legally* I did not acknowledge it, i.e. the law says re-set SOL for OC, not CA. So if it is a choice between no $ for their $50 purchase and $500, especially one that will fall of in a few months, I don't see why they wouldn't go for it.

*If* they don't go for it but DO go for Pay for Close, will a Paid Collection look better to creditors then an unpaid one, even though it is now more 'recent' and may even lower score?

[RobertEG]

Absolutely, if the creditor bases a decision an a manual review.  A paid account obviously looks better to a potential creditor than an unpaid account, regardless of FICO impact. It shows that you took the resonsibility to pay the debt, rather than stiffing the creditor.

[Anonymous]

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@RobertEG wrote:

Absolutely, if the creditor bases a decision an a manual review. A paid account obviously looks better to a potential creditor than an unpaid account, regardless of FICO impact. It shows that you took the resonsibility to pay the debt, rather than stiffing the creditor.

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How many/which do manual reviews? Not trying to get out of paying, one way I've raised is to pay/remove valid debts (including monthly payments for months to *everyone* before I knew to check validity and before i knew I was ruining my score not helping it).

I know somoene said Chase or Visa does a reject for Collections out of hand. Is that all collections or just Paid? I'm pretty sure by now even on auto they don't just pull score they scan for baddies they don't like.

So I'm wondering if an auto scan of 'recent paid collection' is going to hurt as much as 'older unpaid collection'

[RobertEG]

I would never advise anyone not to pay a debt.  Just remember that under the FCRA, it will become illegal for the OC or CA to continue reporting any charge off or CA to a CRA after 7 years (plus six months grace time) from the date of the original debt. 

With all of these accounts approaching the FCRA reporting limit, types of payment terms would allmost seem now to have become irrelevent from a FICO perspective if you dont need to app for new credit in the interim.

If you do plan to app for new credit in the interim, a CO or CA on your report is a serious red flag, regardless of FICO score.  Some creditiors, and especially mortgage lendors, will insist upon payment of all such debts prior to any grant of credit.

After the 7 year FCRA statutory limit, no creditor will ever see them.

Message Edited by RobertEG on 06-16-2008 08:13 PM

Message Edited by RobertEG on 06-16-2008 08:17 PM

[Anonymous]

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@RobertEG wrote:

I would never advise anyone not to pay a debt. Just remember that under the FCRA, it will become illegal for the OC or CA to continue reporting any charge off or CA to a CRA after 7 years (plus six months grace time) from the date of the original debt.

With all of these accounts approaching the FCRA reporting limit, types of payment terms would allmost seem now to have become irrelevent from a FICO perspective if you dont need to app for new credit in the interim.

If you do plan to app for new credit in the interim, a CO or CA on your report is a serious red flag, regardless of FICO score. Some creditiors, and especially mortgage lendors, will insist upon payment of all such debts prior to any grant of credit.

After the 7 year FCRA statutory limit, no creditor will ever see them.

Message Edited by RobertEG on 06-16-2008 08:13 PM

Message Edited by RobertEG on 06-16-2008 08:17 PM

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I totally need to apply for credit and now, one reason I've been working so hard for the last year to clean everything up. Cap1, Bally, Professional Collection are all that remain. 7 yo CO, 4 yo Gym CO, 3-4 year (as they report it) unpaid CA. Ballys are on till 2010, Cap1 (presumeably) until September, Prof Coll until December. I was going to apply for one more card, use that to make PFD deals.

As I see it Prof Coll might at worst agree to Pay for Close, Cap1 seems lost, Bally's I can't get a handle on.

Not sure of a good game plan at this point.

[RobertEG]

As an aside, you my want to go back and look seriously at the projected drop off dates for you CO and CA accounts.  Are you using the date of CO, CA, or any date of last pay to calculate beginning of the 7 year dropoff date?  If so, those dates are irrelevant under the FCRA for commencement of the 7 year (+6 mos) stautory limit for limiting reporting.

Under the FCRA, the drop off date of 7 years (plus 6 mos grace period) is required to be based on the last date of delinquency of the account, and NOT upon any action after the last delinquency, including status as a charge-off, collection, or any payment activity made by you.  FCRA 605.c.1.

This date cannot be "reset."  If a collection agency reports later payment dates, the CRA may put it into your CR, but it has no effect upon the date on which the CRA can no longer include the information in you CR, which runs from the last delinquency date.  They cant change that date, and must delte all of that crap when the 7 yrs + 6 mos expires. 

Message Edited by RobertEG on 06-16-2008 10:13 PM

Message Edited by RobertEG on 06-16-2008 10:18 PM

[Anonymous]

Hi, I'm using the dates I originally found in my Experian report in July where they say 'This item is due to drop off'

They said Cap1 9/08. Makes sense even though it is listed as DOFD/DOLA as 12/01, but their 'DV', even though they didn't include the 01's was clear that this was delinquent before 12/01. In fact I am pretty sure it was so in late '99, which is when I had a huge fight with a consumer rep and screamed at her, called back, and I was cancelled. IN any event, backtracking the overlimit and such fees 8 or 9 01 seems right at the latest. Interesting to see which date is right. I'll start disputing as of 8/08.

They said Prof Collections is 1/09. That sounds right (late 01 is when it all went bad). I have no records from them for that per se, but that sounds about right. In any event it is for a CA Cell Phone and that is 4 years SOL regardless.

The Bally's seem right to.

I sort of wish/hope if I start challenging a few months before it drops, they take a look at this almost gone account and say 'let's drop it'.

In any event, I need to apply this month, so I'm either doing it as is, or taking a stab at Prof Coll and Cap1.

[RobertEG]

You got a handle on it, dude! Just wanted to make sure that they are not hitting you with last payment dates as their period for calculatiing deletion dates.  But you know the law and the score!  Best of luck!