topic Re: Trying to rebuild really bad credit before getting engaged... in Rebuilding Your Credit

Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 00:30:20 GMT

My fiancee and I are trying to rebuild his horrible credit so that he can get a loan to buy an engagement ring. So far, we've paid off all of his collections accounts (we know that they'll stay on the CR even though we've paid them off). We're still disputing 2 collections accounts that are no longer current accounts with those collections agencies who reported them to the CRAs. Here's where he stands now:

1 credit card: $300 limit (we just paid it off completely today, but he is usually pretty good about keeping the balance below 50%)

Student loans: $19,830 (not paying on these as he's still a full time student)

Credit score: 630 (according to equifax)

We just paid off 7 or so collections accounts, and are currently disputing all possible old/incorrect information. (he had a horrible payment history previous to 2006, but has been paying all of his accounts on time since).

I have a FICO around 820 and have quite a bit of credit available to me. I added him as a secondary on one of my credit cards today (only has a $1500 limit) in an effort to increase his score.

I'm not sure what to do next, we are getting married in less than a year and would like to buy a house. We are willing to do pretty much anything to boost his score. Any advice you might be able to offer would be awesome. Thanks!

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 00:41:40 GMT

First never dispute OLD baddies unless they are not reporting accurate info. It will come back verified and become current in FICO eyes!

Did you pay the collections by PFD? If not you need to start sending GW letters.....you want them off his CR

All baddies (late pay & stuff) can remain on CR up until 7 years from the date it was late.

When possible deal with the OC instead of the CA

Always know the DOFD/DOLA and your SOL!

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 00:48:00 GMT

I don't know his SOL (mostly because I dont know how to find a statute of limitations- is that the 7 year rule?)

and I dont know what PFD is (I looked it up but 'planet feedback' doesn't help much...)

As for the OC and CA... I did settle one account with the OC (it was a medical acount, and we then had to dispute his acount with the CA that this hospital sold the acount too-they no longer have the acount, so they told me to dispute it) The others I settled for about 20% with the CA because the OC wouldn't do anything to help me.

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 00:51:25 GMT

AH! PFD! sorry, no not that I know of... and who do we send these good will letters to?

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:09:30 GMT

Ever state sets their own SOL.......IF he lived in more then 1 state.......they can use either SOL where he lives now or in the state that he received credit!

simple SOL

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

GWs are sent to whoever was paid........they do not have to delete........this is why when dealing with a CA you should DV first then if they answer you PFD

Always remember that a collection is a collection ,paid or unpaid..................never dispute these as they will update & may hurt your scores.

CRTP v SOL

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17466

Message Edited by HappyDays on 07-11-2008 06:09 PM

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:14:58 GMT

ok so looks like i made some mistakes here. I disputed one old collections acount because my fiancee is claiming he paid on time, and another because he has no idea what the acount is (the acount is 6 1/2 years old) does this mean that we will have to wait ANOTHER 7 years for this acount to go away if it's seen as current now because we disputed it?

The woman I settled 6 of the 7 collections acounts was really nice and helpful (probably because I was giving her money I'm sure) but would it do any good to call her back directly and ask her to take it off of the CR completely or should I just start writing letters? Who to i send GW letters to?

Should my fiancee apply for another credit card now as he has very low availaible credit limits or should we wait for the dust to settle from all of these disputes and settlements?

I feel like a moron...

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:16:37 GMT

just re-read your reply about the GW letters and who to send them to. thanks sorry!

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:20:19 GMT

I just checked that SOL website you sent (thanks!) and for Oklahoma (which was his state of residence for most of these acounts) it says that the SOL for open acounts is 3 years. (5 years for promisory notes and written contracts) does this mean we can dispute anything older than 3 years? I'm sorry I'm so lost on all of this...

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:26:35 GMT

After having read the SOL vs CRTP article, I'm beginning to freak out. I settled my fiancee's acount for less than half of what he owed. The article says they can now come after us for the rest! Is this why I need to get them to take it off of his report altogether? And I think I now understand that SOL doesn't mean we can dispute 3-5 year old items. Does disputing re-activate older acounts and make the CRTP start over from the date disputed or is the 7 year mark still 7 years from the 'late payment' date?

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:36:48 GMT

The SoL is how long the creditor has to file suit for the debts (As others have said, they they can file whenever they want, but if it is past the SOL you have a defense).

The SOL and the CRTP have nothing to do with one another. So you are always dealing with two sets of dates. If your fiance doesn't live in the same state as he did when he incurred the debts, you'll want to look up theSOL for the current state he lives in because the CA (collection agency) will sue using the SOL for whatever state gives them the most time to do so.

Message Edited by UpUpUp on 07-11-2008 09:36 PM

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:32:07 GMT

oh no! the SOL in colorado, where we live now, is 6 years! What's the point of settling if they can still come after you for the full amt owed? Is there anyway to stop them from doing this? I have a letter of settlement from the CA, does this mean anything? If an account on his CR says "closed" and bal:$0, I dont need to worry about him still owing them money right?

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:36:53 GMT

When I settled with the CA they sent a letter that says "The National Bureau of Collections (the CA) and the Medical center of SE Oklahoma (the OC) have agreed to accept $275 as settlement in full for account #..... This payment relieves you of any further personal obligation on the above mentioned amount and account number." Can they still sue me if they sent a letter saying we have no further financial obligation to them?

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:39:34 GMT

stik78 wrote:

oh no! the SOL in colorado, where we live now, is 6 years! What's the point of settling if they can still come after you for the full amt owed? Is there anyway to stop them from doing this? I have a letter of settlement from the CA, does this mean anything? If an account on his CR says "closed" and bal:$0, I dont need to worry about him still owing them money right?

If the letter states payment was made & the Bal is $0..............no they can NOT come after you.

What they usually do is accept partial payment & tell you that they will sell it to another CA........next thing that you know another CA is calling or reporting.

Read that letter over & over to see that it says settled! Bal $0

If it shows on CR as Bal $0 never lose that CR

CR should be kept forever!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! once something has been change or deleted that you can NOT get it back without proof!!

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:41:58 GMT

OK this was medical.....................if there are any more you use the HIPPA letter.......very different from other debts.

They will not sell or report this debt!!!!!! you are safe!

Is there a CA reporting this on his CR?

Message Edited by HappyDays on 07-11-2008 06:41 PM

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:42:42 GMT

so do i need to still write them a GW letter asking them to take it off of his CR altogether?

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:44:00 GMT

yes, I had to settle with the CA that the hospital (OC) sold his accounts to. We checked his CR yesterday and it said that the accounts were settled but that they were still open accounts....

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 01:58:00 GMT

Send ALL correspondence to the HIPAA COMPLIANCE OFFICE of the HC provider,CMRRR

Your Name)

(address)
(City,State, zip)
s.s.# (social security #)
HIPAA Compliance Office
( health care provider creditor)
(address)
(date)
Dear Sir/Madam;
This letter is in reference to (account #) for services provided to (name of patient) on (date of service).
This account has been paid. been paid
Please be advised that under Federal Statutes. the Fair Credit Reporting Act, (15 U.S.C. § 1681 et seq)and (name of your State)'s Consumer Credit Statutes, you may be held liable for the actions of (collection agency name).
(a) Duty of furnishers of information to provide accurate information.: (1) Prohibition.; (A) Reporting information with actual knowledge of errors.
A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate.
In addition, the HIPAA and (name of your State)'s Medical Privacy Statutes are in effect in this situation even though the health care services you provided may have been prior to enactment .
The Privacy Rules prohibits a covered entity from using or disclosing an individual's protected health information ("PHI") unless specifically authorized by the individual or otherwise allowed under the Privacy Rules.
In general, PHI encompasses substantially all "individually identifiable health information" that is transmitted or maintained in any medium. "Individually identifiable health information" includes health information that is created or received by a health care provider, health plan, employer, or health care clearinghouse, and that relates to an individual's physical or mental health or condition, including information related to an individual's care or the PAYMENT for such care.
Your furnishing of my account information to (collection agency name), is not in compliance with HIPAA,or (name of your State}'s Privacy Act, and any subsequent reporting of this account on my credit reports to (credit reporting bureaus) is a clear violation of Public Law 104-191 ("HIPAA") since there can be no permissible business purpose in divulging protected health information to anyone on an account once there is no longer any payment due.
You are required under the FCRA and FACTA to accurately report the status of any account to the credit bureaus, and you are prohibited under the HIPAA and State privacy regulations from doing so on a PAID account, as there is no longer any permitted business purpose.
Therefore I am requesting you promptly rescind all such account information furnished to (collection agency) and require them to purge their records of all reference to this account, and that you insure that any and all reporting of this account is immediately deleted from my credit reports.
This simple procedure to request the deletion of ALL reference to this account from the records of ( collection agency name) and to require them to have this account information deleted in its entirety from my credit reports will resolve this problem completely.
Please respond, in writing within 10 days that you are processing this request.
I am reserving the right, to take appropriate legal and civil action including reporting to any applicable regulatory authorities any lack of cooperation or compliance with this request.
I hereby waive my rights under HIPAA and any State Privacy Act for the single purpose of your transmission of this request and accompanying documentation in any required report you must make to your E &O insurance carrier.

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 02:04:42 GMT

thanks! so I send this to the OC or the CA or both? And am i reading the letter right that HIPPA regulations state that no medical-related credit issues can be reported to credit bureaus because of privacy regulations?

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 02:20:22 GMT

yup! call the hospital and ask for the address for the HIPAA COMPLIANCE OFFICE........it might be the same or different then the address of the hospital.

Re: Trying to rebuild really bad credit before getting engaged...

Anonymous — Sat, 12 Jul 2008 02:58:25 GMT

oh my gosh thank you so much! you are my new best friend. And then it's their responsibility to have it all removed? I don't have to call the CA? Do i need to send them a copy of the letter of settlement from the CA to prove I paid them off?

Do they have to remove information on accounts that haven't been paid/settled? I just found one more tiny account with a $50 balance (but the CR says Past Due Amt:$0) from the same hospital listed by a different CA. I didn't settle with them or pay them off but do they still have to take the information off?

There's also ANOTHER medical collections account that my CR says has bal:$0, Amt Past Due: $0, account status:closed and has a comment of "PAID COLLECTION" It's with a radiology company (which I assume qualifies as medical). I don't have a letter proving I paid them, will a copy of my CR stating the above suffice? Do I need to prove it's paid?

Thanks again for all of your help, you've really been a sanity saver!

Message Edited by stik78 on 07-11-2008 07:58 PM