topic Re: Making payments in General Credit Topics

Making payments

Anonymous — Fri, 09 Nov 2007 17:58:07 GMT

What does making payments on a debt handled by a CA for a negotiated amount, less that what you actually owe, do to your fica score?

Re: Making payments

fused — Fri, 09 Nov 2007 18:23:20 GMT

Paying on a collection with a CA will do nothing to improve your scores. In FICO scoring it doesn't matter if the collection is paid, unpaid or on a payment plan. I know it stinks. Your goal should be deletion of this collection. Can you give more details. Charge-off date, your states SOL, etc.?

Re: Making payments

Anonymous — Fri, 09 Nov 2007 19:18:04 GMT

HSBC balance 2884.87 IC SYSTEM is the CA. They haven't reported to CRA probably because I haven't make a payment to them yet. They did agree to 1740.00 with 6 payments of 290.00 today.

The report on my Credit Report is Household Finance. They did sell it to IC System. It has a CO as bad debt. opened 5/02 closed 1/05 updated 10/07 I got a letter on 9/10 from IC System that this account had been turned over to them.

Re: Making payments

fused — Sat, 10 Nov 2007 00:11:32 GMT

questions wrote:

HSBC balance 2884.87 IC SYSTEM is the CA. They haven't reported to CRA probably because I haven't make a payment to them yet. They did agree to 1740.00 with 6 payments of 290.00 today.

The report on my Credit Report is Household Finance. They did sell it to IC System. It has a CO as bad debt. opened 5/02 closed 1/05 updated 10/07 I got a letter on 9/10 from IC System that this account had been turned over to them.

Again deletion is your goal. I have no idea how motivated this CA is but I would attempt a PFD and offer no more than 50% of the total debt in a one time payment if you can afford to do this.

Re: Making payments

Anonymous — Sat, 10 Nov 2007 16:13:10 GMT

Would you recommend getting a loan to pay a lump sum. I have to make monthly payments to pay them off anyway. But Im not sure if I could get a 1400 loan. I have no equity. My fico is 601. And my cc is limited at 300.

Re: Making payments

Anonymous — Sat, 10 Nov 2007 16:54:17 GMT

questions wrote:
Would you recommend getting a loan to pay a lump sum. I have to make monthly payments to pay them off anyway. But Im not sure if I could get a 1400 loan. I have no equity. My fico is 601. And my cc is limited at 300.

Me personally I would not. But others may have a diff. view. I don't think it makes financial sense to borrow money to pay something that is owed to begin with. Kind of like robbing Peter to pay Paul.

First, I would try to work hard, get enough that you can pay all at once, and then negotiate a PFD. Maybe someone else will have a better way to suggest to you.

Re: Making payments

fused — Sat, 10 Nov 2007 21:03:52 GMT

questions wrote:

Would you recommend getting a loan to pay a lump sum. I have to make monthly payments to pay them off anyway. But Im not sure if I could get a 1400 loan. I have no equity. My fico is 601. And my cc is limited at 300.

Are you planning to apply for new credit in the not so distant future? Or is saving money more important to you?

Re: Making payments

Anonymous — Sat, 10 Nov 2007 21:55:33 GMT

I am more interested in saving. We want to save for a down payment for a house. Hopefully by mid to late summer.

Re: Making payments

fused — Sun, 11 Nov 2007 01:36:00 GMT

Before you apply for the loan, be sure you have the PFD acceptance on the CAs letterhead stating in clear, concise English (American is alright too) that they will delete all and anything relating to this account. If you're unsure paset their letter in the forums and have others give you feedback.

As for the loan, it might be a little tough. Go with a CU or bank who you have an established relationship with. Don't expect great terms though.

Re: Making payments

Anonymous — Sun, 11 Nov 2007 05:53:02 GMT

you need to find out what the DOFD is.....do not trust the CA to give it to you. Is the OC reporting on this account? what is your SOL?

From what I heard that this CA is crooks and nasty to deal with DO NOT talk to them....everything in writting!

Re: Making payments

Anonymous — Mon, 12 Nov 2007 03:21:48 GMT

As far as I can tell my last payment on this was Jan of 07. And I do not see IC SYSTEM as a creditor on my reports. But that is who is calling me and that is who HSB said they sold the account to.As far as the SOL. This is what I found out.South Carolina Statutes of Limitation

Breach of Contract: 3 years, (SCCLA 15-3-530).

NOTE: A partial payment or acknowledgment in writing tolls the SoL, (SCCLA 15-3-30).

Foreign or Domestic Judgments: 10 years, (SCCLA 15-3-600).
It says on my transunion report that it is due to be removed on 4/09.
I finally got them to agree to a payment plan, This was done over the phone and my first payment will be later this month. An automatic withdrawal from my checking account.

Re: Making payments

TryingVeryHard — Mon, 12 Nov 2007 06:45:53 GMT

I do hope that they will not abuse your CHECKING ACCOUNT. Document everything.