topic Re: questions about collection accounts in Rebuilding Your Credit

questions about collection accounts

new_earth — Wed, 03 Apr 2013 17:38:46 GMT

I posted previously some questions about 3 collection accounts I have. Since then I have gotten a little confused after reading so much info. Before I go sending letters should I just dispute them with the CR agencies first and see if they just drop? Or if they validate them through the agencies will they renew the date of account opened, or I guess that is called reaging?

What I have is $30 with NCO from around 2008, $645 with Portfolio Recovery from 2009, and $500 something with Midland from 2012. All unpaid as of now. I am just curious if it is something I can do first before I bother with all the letters. Thanks!

Re: questions about collection accounts

DaBears — Wed, 03 Apr 2013 18:00:34 GMT

@new_earth wrote:
I posted previously some questions about 3 collection accounts I have. Since then I have gotten a little confused after reading so much info. Before I go sending letters should I just dispute them with the CR agencies first and see if they just drop? Or if they validate them through the agencies will they renew the date of account opened, or I guess that is called reaging?

What I have is $30 with NCO from around 2008, $645 with Portfolio Recovery from 2009, and $500 something with Midland from 2012. All unpaid as of now. I am just curious if it is something I can do first before I bother with all the letters. Thanks!

If you file an online dispute with th CRA's the verification process will go through e-oscar which 99.9% of the time come back verified. I would send DV letters to the 3 CA's. CRA's can't re-age a collection account. What is the SOL in your state?

Re: questions about collection accounts

new_earth — Wed, 03 Apr 2013 18:19:53 GMT

I'm in NJ, from what I can find online it is 6 years.

Re: questions about collection accounts

DaBears — Wed, 03 Apr 2013 18:22:50 GMT

It's up to you if you want to send the DV letters. It would put a bar on the collections until they verify.

Re: questions about collection accounts

new_earth — Wed, 03 Apr 2013 18:25:24 GMT

what does 'put a bar on them' mean? sorry, soooo credit uneducated!

Re: questions about collection accounts

DaBears — Wed, 03 Apr 2013 18:28:47 GMT

@new_earth wrote:
what does 'put a bar on them' mean? sorry, soooo credit uneducated!

They have to stop all collection activites until they verify. Just because they list the account as a collection on your CR's doesn't mean they own it!!! I learned that from my Consumer Attorney!!!

Re: questions about collection accounts

new_earth — Wed, 03 Apr 2013 18:30:57 GMT

hmm....once they verify though, does that mean they are more likely to come sue me? There is really only one I can afford to pay off immediately, the $30 one. I want to fix all this but don't want to make things worse for myself....

Re: questions about collection accounts

DaBears — Wed, 03 Apr 2013 18:33:21 GMT

@new_earth wrote:
hmm....once they verify though, does that mean they are more likely to come sue me? There is really only one I can afford to pay off immediately, the $30 one. I want to fix all this but don't want to make things worse for myself....

They could come after you. I would PFD the $30 one. Who is the CA on that one?

Re: questions about collection accounts

new_earth — Wed, 03 Apr 2013 18:52:27 GMT

NCO....

Re: questions about collection accounts

DaBears — Wed, 03 Apr 2013 18:56:45 GMT

If you know its your debt I would call them and ask if they would do a PFD.

Re: questions about collection accounts

new_earth — Wed, 03 Apr 2013 18:57:56 GMT

yeah ok that is what I will do. thanks. wish I could do something about the other two

Re: questions about collection accounts

new_earth — Wed, 03 Apr 2013 20:01:53 GMT

no luck over the phone. and now they are telling me the amount is actually $48.92 because the original account charged a late fee. But NCO reports the amount at $30 to the CR's. **bleep**? She said all they can do is take the payment and update it to paid in full, and then call the credit reporting department and ask them to delete. Ok this is going nowhere. Should I just send a letter by mail? Anyone have the proper address they can PM me? There is one with PO box listed on my CR's, should I try that one?

Re: questions about collection accounts

RobertEG — Wed, 03 Apr 2013 20:15:41 GMT

A dispute is to challenge the accuracy of their reporting. It requires the identification of some inaccuracy as a basis for them to investigate the dispute.

Simply stating you want verification is not basis for a dispute, and in response to a legitimate dispute, the furnisher is only required to investigate and reach a finding, not to provide documentation or "prove" its accuracy. Verification, provided they have some support, in not difficult.

The DV process does not require the consumer to provide any supporting documentation of an actual error. It requires only a request that they investigate and state they have basis for verification. The CRAs have zero involvement in the DV process, so it is not proper to send DV related issues to them.

While the DV process is thus much simpler to request, it also does not require them to "prove" anything, and does not even require a response.

It requires them to cease active collection until such time as they choose to provide the requested debt verification.

AS for their reporting, a collection can be reported as open as of the date they receive their collection authority. Reporting a later date as the open date is their perogative, but it is essentially meaningless. The date of ultimate credit report exclusion of their collection is based solely on the DOFD on the OC account, not upon any activity they take or report other than the DOFD.

Re: questions about collection accounts

new_earth — Wed, 03 Apr 2013 23:49:03 GMT

before I go starting another thread.....for the Portfolio Recovery CA, it is actually a HSBC/orchard bank CO. Would it be a good idea to contact HSBC to see if I can pay it off with them instead of the CA? If they would, will it reopen as a revolving account or what happens? Thanks.

Re: questions about collection accounts

Anonymous — Wed, 03 Apr 2013 23:54:32 GMT

If they still own the debt you can call and ask. No, it won't reopen at all. It will still be a CO, just paid. The CA would update to 0 balance.

Re: questions about collection accounts

new_earth — Thu, 04 Apr 2013 00:38:11 GMT

do you think doing that will help my score AND reasons for denial? It seems I am getting denials for more than just 'score' but for the bad things on the report.

Re: questions about collection accounts

Anonymous — Thu, 04 Apr 2013 02:45:16 GMT

A paid collections is scored no differently by FICO. It may help you when applying but more often than not, it is the collections itself that hampers approval.

Re: questions about collection accounts

new_earth — Thu, 04 Apr 2013 03:03:06 GMT

oh ok. so it will come up as a collection with or without payment. so yeah pointless unless they delete.

Re: questions about collection accounts

Anonymous — Thu, 04 Apr 2013 03:37:14 GMT

Other than the fact you would be paying a debt. They don't go away even after they are excluded from your report.