topic Dealing with the OC? in Rebuilding Your Credit

Dealing with the OC?

Anonymous — Fri, 06 Jul 2012 18:16:54 GMT

Hello...The DH and I are trying to rebuild credit in hopes to purchase a home in the next year and a half.

I originally had 5 collections accts, 1 paid off already, another has agreed to PFD. Listed below are my current baddies:

I also have CAP1 and HSBC reporting until 2014/2015

Creditor Name: AFNI
Original Creditor Name: AMP D MOBILE
Amount: 1044

Creditor Name: LVNV FUNDING
Original Creditor Name: HSBC DIRECT MERCHANTS BANK/ NOW CAPITAL 1
Amount: 1116

Creditor Name: MIDLAND FUND
Original Creditor Name: CAPITAL ONE BANK USA N A
Amount: 1515

Has anyone had luck with contacting CAP 1 or HSBC(NOW CAP 1) and having them pull back the collection, making a PIF or payment arrangements? I've seen horror stories with the CA's who've bought my accts and dealing with MIDLAND has already been a pleasure. =o( SInce they are reporting wrong dates and have even changed the reporting dates to extend the collection date.

Since these are all mine and I am willing to pay but since they bought the debts at much lower amounts and added an insane amount of interest I am at a loss. CAP1 sold off at $400 and HSBC at $300. Now they are $1515 and $1116. That is just insane to me. I would even be willing to pay that amount if they would remove it but they are unwilling. Both HSBC and CAP1 were charged off in 2007 but Midland shows 2011.

Also, I've read that settling collection accounts is bad for underwritting. If we settle the approx $4500, we have in collections, will we get denied when it comes down to the underwritting?

Re: Dealing with the OC?

RobertEG — Fri, 06 Jul 2012 18:44:35 GMT

I am not sure what is meant by having the OC "call back the collection."

The collection can terminate in one of two ways. Either the OC can terminate the collection authority given to its agent, or the debt can be paid, thus requring the debt collector, regardless of whose pocket payment is first put into, to close their collection and report a $0 balance under collection.

The OC cannot require the debt collector to "pull back" their credit reporting. It was not their reporting. They can ask the debt collector to delete, but cant compel them to do so.

If the reporting of the collection is considered to be more detrimental than prior reporting made by the OC, then most will choose to have the collection deleted.

Thus, an offer of PFD to the debt collector, as opposed to the OC.

Then address any remaining OC reporting via GW requests to them.

Re: Dealing with the OC?

Anonymous — Fri, 06 Jul 2012 18:56:24 GMT

Okay, I guess my original post was kind of unclear.

I have two collections that were originally credit card companies HSBC (now CAP 1) and CAP1. Both are still reporting neg to my credit report but show a $0 balance. The charged off amount was much lower than the two collection accts currently hold. I do not mind paying off the amount I charged or even a bit more, but to pay nearly 1000 dollars more because the collections agencies have charged late fees or intrest is insane to me.

Those two colletction agencies never sent dunning letters to my current address, nor contacted me by phone. I sent a debt validation and cease and desist letter to both of them when I found them on my credit report but they still report every month and ding my credit. The never sent debt validation information.

I guess my question is...has anyone had luck with paying the original creditors? Will this remove the collection agencies?

Re: Dealing with the OC?

RobertEG — Fri, 06 Jul 2012 19:08:56 GMT

The issue of what a debt collector can attempt to collect beyond the original principal is addressed by FDCPA 808(1), and is a separate factual determination.

They cannot attempt to collect any amount unless it is specifically authorized in your original contract with the creditor, or is othewise specifically authorized by the laws in your state. In considering what they are attempting to collect, first review your account agreement with the OC, and determine whether that agreement authorized the collection of any amounts, such as interest, fees, etc. Maybe you can point out to the debt collector their lack of authority to collect those amounts, and obtain satisfaction of all debt with both the OC and the debt collector.

If the OC is willing to accept a lesser amount as satisfaction of the debt to them, then they will update their reporting to paid, $0 balance.

That does not necessarily preclude the debt collector from continuing to assert separate debt due to them.

The OC does not control the business of the debt collector. Personally, I would prefer to pay the debt collector and thus obtain a statement of full satisfaction of all debt with them, and hopefully, their concurrent CR deletion.