topic Re: Goodwill letters from IIBs? in Bankruptcy

Goodwill letters from IIBs?

NYC_Fella — Sat, 02 Oct 2021 12:54:29 GMT

I filed for BK in September 2016 and was discharged in December 2016. My IIBs were Citibank ($12.5K), HSBC ($10K), and Capital One ($1K). Post-BK I was able to get two Capital One cards which I cancelled after 3 years because of low CLs. I still have an auto loan with Capital One. Everything post-BK is in good standing.

All 3 IIBs are also showing delinquent payments during the pre-BK period. Is there any chance that writing goodwill letters would help get rid of these earlier than 2023?

Also, if anyone has a good example of a successful goodwill letter, I would greatly appreciate getting the precise language.

Thanks in advance!

Re: Goodwill letters from IIBs?

Horseshoez — Sat, 02 Oct 2021 13:00:18 GMT

@NYC_Fella wrote:
I filed for BK in September 2016 and was discharged in December 2016. My IIBs were Citibank ($12.5K), HSBC ($10K), and Capital One ($1K). Post-BK I was able to get two Capital One cards which I cancelled after 3 years because of low CLs. I still have an auto loan with Capital One. Everything post-BK is in good standing.

All 3 IIBs are also showing delinquent payments during the pre-BK period. Is there any chance that writing goodwill letters would help get rid of these earlier than 2023?

Also, if anyone has a good example of a successful goodwill letter, I would greatly appreciate getting the precise language.

Thanks in advance!

As I understand it, even if you were successful in having the late payments removed, it will not help your scores by even a single point. Why? Because the IIB trumps all other scoreing metrics.

Re: Goodwill letters from IIBs?

NYC_Fella — Sat, 02 Oct 2021 13:06:52 GMT

@Horseshoez wrote:
As I understand it, even if you were successful in having the late payments removed, it will not help your scores by even a single point. Why? Because the IIB trumps all other scoreing metrics.

You are probably correct, but I have some doubts. The BK is a public record ding all by itself. The delinquent accounts are in the "number of accounts paid late" metric which also affects the "percentage of accounts paid as agreed" metric. So there could possibly be a benefit.

Just grasping at straws here so I can get my score up to 750 or so (it's 702 now) without having to wait another few years.

Re: Goodwill letters from IIBs?

pizza1 — Sat, 02 Oct 2021 15:16:55 GMT

Sorry, but they won't budge. Any accounts that were late, Co, etc.. (negative) before your filing date are reporting correctly to the CRA. GW letters won't help, and sometimes and do more harm, as companies have been known to make those lates "recent". Then you have to go thru all the trouble of disputing the "recent lates" with the CRA, etc...

just leave it alone....All your negative account prior to filing are reporting as they should and correctly, and will follow the DOFD rule....

Re: Goodwill letters from IIBs?

NYC_Fella — Sat, 02 Oct 2021 19:14:57 GMT

@pizza1 wrote:
GW letters won't help, and sometimes and do more harm, as companies have been known to make those lates "recent". Then you have to go thru all the trouble of disputing the "recent lates" with the CRA, etc...

Ouch. I'd better just leave it alone, then. Thanks.