topic What action should I take with this account? in Rebuilding Your Credit

What action should I take with this account?

Anonymous — Thu, 20 Nov 2008 17:16:06 GMT

This is my last negative account with a balance. What action should I take? I am looking to buy a house in the Summer and want my CR to look as clean as possible. Any thoughts/suggestions would be appreciated. Thanks!

OC: HSBC/Rs

Status of: November 2008

Date opened: November 2003

Date of last activity: December 2004

Date Closed:Not reported

Largest Past Balance: $434

*Account transferred or sold

Balance: $0

Current Status: Bad debt/collection

Past due amount: Not reported

CA: AFS

Status of: June 2008

Date opened: Not Reported

Date of last activity: Dec 2004

Date Closed: Not Reported

Largest Past Balance: $434

Balance: $662

Current Status: 120+ days past due

Past Due Amount: $662

Re: What action should I take with this account?

203bravo — Thu, 20 Nov 2008 17:26:31 GMT

DV - AFS. If they validate the debt then you can PFD. GW is your only hope with HSBC.

Good luck.

Re: What action should I take with this account?

Anonymous — Fri, 21 Nov 2008 06:01:04 GMT

I'm assuming they mailed out a letter to you a while back and you have not had the chance to DV. I would offer a Pay For Delete to AFS. However, since HSBC sold your account, I think a GW would be pointless seeing that HSBC would not go through the hassble of repurchasing the account from the collection agency. It is rare from my experience in the industry. However, if HSBC still had your account, you could have negotiated and they would have recalled the account. Thus the AFS would have no choice but to delete the TL in compliance with Metro 2 and FCRA. Good luck!

Re: What action should I take with this account?

RobertEG — Fri, 21 Nov 2008 07:00:29 GMT

Hard to say what you should do now..... it depends on what you have done to date.

Apparently, you are not disputing the validity of the debt? You never disputed with the CRA under sectiion 611(a) of the FCRA the original debt reported by the OC ? Do you acknowledge the orig debt?

If so, then DV with the CA remains your option before a PFD. Under section 809(b) of the FDCPA, a DV request must notify the CA "that the debt, or any portion thereof, is disputed" While you are not apparently disputing the debt with the OC, the CA has tagged on approx. $230 in additional fees. So the thrust of, and apparent reason for, DVing the CA now is to obtain a verification of the additional fees being charged by the CA?

I would now DV, if only for this reason, before offering any settlement.

Clearing up the account to paid status will not help you credit score, unless you can secure a PFD, which is "iffy" but it will nonetheless help on a manual review of your credit report upon loan application in the future.

Most mortgage lenders will require this as a condition of approval, so if you take it upon yourself to clear it up now,it will definately help.

Good luck!