topic Re: Huh? What? in Rebuilding Your Credit

Huh? What?

Conswalla — Mon, 05 Nov 2012 16:54:33 GMT

Community, I need your help. I have a charged-off account with First Premier. It was charged off in 2010. I contacted First Premier in September 2012 to get information on the account. First Premier informed me that the account was sold to Asset Acceptance. I contacted Asset Acceptance and requested DV. I also filed a compliant with the BBB. About 3 days later, I received a letter from Asset Acceptance that they would cease and decease collection activity and remove the trade line.

Today, I received an alert from FICO which showed that my score dropped. I seems that First Premier updated their charged-off trade line to show a high balance change. They changed the amount from $200 to $464.00. I called FICO customer service and they said that the account can be bought and resold for the rest of my life unless I pay First Premier. They said charge-off's are not subject to the 7 year rule unless they're paid charge-offs. I received this information from a customer service representative and a supervisor.

What should I do now? Should I request a PFD to First Premier? Also, the tradeline for Asset Acceptance is still on my account as an open collection. It hasn't been removed. The letter I have from Asset Acceptance is dated September 27, 2012 in which they said they'll remove the trade line. Also, the balance owed to First Premier shows $0.00. Only the high balance was altered.

Please help. I'm very confused.

Re: Huh? What?

p- — Mon, 05 Nov 2012 17:00:54 GMT

@Conswalla wrote:
Community, I need your help.  I have a charged-off account with First Premier. It was charged off in 2010.  I contacted First Premier in September 2012 to get information on the account. First Premier informed me that the account was sold to Asset Acceptance. I contacted Asset Acceptance and requested DV.  I also filed a compliant with the BBB. About 3 days later, I received a letter from Asset Acceptance that they would cease and decease collection activity and remove the trade line.

Today, I received an alert from FICO which showed that my score dropped.  I seems that First Premier updated their charged-off trade line to show a high balance change. They changed the amount from $200 to $464.00. I called FICO customer service and they said that the account can be bought and resold for the rest of my life unless I pay First Premier. They said charge-off's are not subject to the 7 year rule unless they're paid charge-offs. I received this information from a customer service representative and a supervisor.

What should I do now? Should I request a PFD to First Premier? Also, the tradeline for Asset Acceptance is still on my account as an open collection. It hasn't been removed.  The letter I have from Asset Acceptance is dated September 27, 2012 in which they said they'll remove the trade line. Also, the balance owed to First Premier shows $0.00. Only the high balance was altered.

Please help. I'm very confused.

First, if you have a legitimate unpaid debt from 2010, First Premier is well within thier rights to report you as derogatory. Just because you got a collector to stop reporting doesn't strip the rights of the original creditor. If it were me, I'd contact First Premier again, see if they will accept payment in full in exchange for deletion. If not, pay them or whoever they say to pay so you get the open balance off of your CR.

Once that is done, dispute the Asset Acceptance account, and include a copy of the deletion letter. That should wipe that one off. Then, begin the lengthy Goodwill Letter process with First Premier.

If you don't pay, they will continue to sell the account to other collectors, and those collectors can report you. That will keep on until 7.5 years after the date of first delinquency, or the day you first fell behind on your payments without catching up.

Good luck.

Re: Huh? What?

Shogun — Mon, 05 Nov 2012 17:08:09 GMT

First off, I think there's some confusion as to the CO. Yes, a debt is a debt, they can try to collect on it any time until it is paid. However, the 7 year thing, which is the CRTP. It has nothing to do as far as if it's paid or not. It will fall off 7 years +180 days from the DOFD whether paid or not. If the account was CO'd and First Premeir had $0 owed listed then it has been sold to the CA. First Premeir should not even be able to accept payment. What probably will happen is the account will be sold to another CA and you will have to deal with them when they pop up.

Re: Huh? What?

Conswalla — Mon, 05 Nov 2012 17:08:28 GMT

I contacted First Premier today. They said the account is with Asset Acceptance. It hasn't been transferred back to them. I guess I have to wait until First Premier has the account returned and then work with them on PFD.

Re: Huh? What?

Conswalla — Mon, 05 Nov 2012 17:18:32 GMT

So I need to wait and see what CA the account was sold to and work with them not First Premier?

Re: Huh? What?

p- — Mon, 05 Nov 2012 17:21:22 GMT

@Conswalla wrote:
I contacted First Premier today. They said the account is with Asset Acceptance. It hasn't been transferred back to them. I guess I have to wait until First Premier has the account returned and then work with them on PFD.

Waiting would be a big mistake. As Shogun said, what will happen next is Asset Acceptance will sell the account to someone else. First Premier will never accept payment from you. Asset has already agreed to delete, so why not pay them? That would keep you from getting yet another CA added to your report. Then after it's paid, work on a GW with First Premier.

If you wait, it can only get worse.

Re: Huh? What?

Conswalla — Mon, 05 Nov 2012 17:24:38 GMT

Sorry. I wasn't clear on what you were suggesting. I just wanted to be clear on the proper next step.

Thanks.

Re: Huh? What?

p- — Mon, 05 Nov 2012 17:27:28 GMT

@Conswalla wrote:
Sorry. I wasn't clear on what you were suggesting. I just wanted to be clear on the proper next step.

Thanks.

No problem. I think your position now is one of opportunity and you would be wise to take advantage of it. Good luck!

Re: Huh? What?

Shogun — Mon, 05 Nov 2012 17:35:18 GMT

Absolutely, if they are agreeing to delete and will accept payment, get that done! You don't want another CA popping up with it and have to start over. Another thing I've noticed is that the more times the debt is sold, the more of a bottom feeder the CA is.

Re: Huh? What?

p- — Mon, 05 Nov 2012 17:35:56 GMT

@Shogun wrote:
...the more times the debt is sold, the more of a bottom feeder the CA is.

+1000