topic Re: Collection after four years in Rebuilding Your Credit

Collection after four years

Anonymous — Tue, 02 Dec 2008 20:40:33 GMT

In July I was notified by a collection agency about some unpaid tickets to a city government that were never paid. Once I got the copies of the tickets and realized that I never did pay them I paid them in full immediately. When it was reported on my credit it dropped my score 48 points. Is there anywya to dispute the collection since I was never notified by the original creditor and or is there anyway that I could get the score adjusted since they were paid in full? I realize that it was my fault that I forgot to pay them but four years to notify somebody is a bit ridiculous.

Please help

Re: Collection after four years

Anonymous — Tue, 02 Dec 2008 23:52:15 GMT

You did receive notification from the OC...the letters saying you ad tickets...you probably forgot about them...or moved or something...send GW letters...asking for the TL to be removed from the CRAs...since you PIF...

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 02:03:43 GMT

I would send a letter to the city dept issuing the tickets telling them that you were never notified and asking immediate removal of derogatory information

failing this, I would send a complaint to your AG for failure of the city dept to notify you properly and refusal to remove the derogatory information

failing this I would send an ITS letter to the city dept giving them 7 days to remove or will file suit

Re: Collection after four years

RobertEG — Wed, 03 Dec 2008 02:37:37 GMT

I agree with slyhouse.

Sad but true, you recieved the tickets, acknowledged them, and even later paid them through the CA. So you had OC notice of the debt, and acknowledged it by paying.

So I see no dispute under the FCRA or FDCPA.

A collection agency is not bound by any provision of law when then can initiate collection activity on behalf of an OC. They just cannot successfully sue afer the SOL has expired.

But those are apparently moot points here. You paid, so no legal action. No ITC letters. Dont waste that effort, for you have no cause of action.

So your real issue now is when it will drop from your CR.

Go back to the tickets you were issued. They had a payment due date. That becomes your DOFD under the FCRA. Add 7 1/2 years from the date of default of payment of each ticket, and that is the drop-off date for further CRA reporting.

That is my read.

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 03:25:07 GMT

I think ITS is a waste of time. You got the tickets, you didn't pay, the city hired a CA to collect, you paid.

I honestly believe your only course of action is a GW letter to the CA. Since you did PIF right away, they might be willing to remove.

Who did you pay, the CA or OC?

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 04:24:56 GMT

notification by a CA is not proper notification. I would stand by my early suggestion to ask to fix, then escalate with a complaint and eventually ITS

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 04:41:22 GMT

demed wrote:
notification by a CA is not proper notification. I would stand by my early suggestion to ask to fix, then escalate with a complaint and eventually ITS

I must be missing something......notification of what?

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 04:46:10 GMT

notification of the original tickets. that's the whole point of contention....

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 04:54:41 GMT

demed wrote:
notification of the original tickets. that's the whole point of contention....

If the tickets were done by the red light cameras or something of that sort and the OP didn't know the tickets ever existed.....I would agree that he should have been notified.

But the OP states "Once I got the copies of the tickets and realized that I never did pay them I paid them in full immediately...............I realize that it was my fault that I forgot to pay them........."

It sounds as if the OP knew the tickets existed, just failed to pay them because he forgot to do so.

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 06:11:20 GMT

i read it that the OP never saw them before, but when the CA presented him with the copies, he realized it was something that had to be paid.

but you also are correct in saying that IF the OP had been previously notified, then the only way out is GW.

Re: Collection after four years

Anonymous — Wed, 03 Dec 2008 13:59:23 GMT

Thanks for all of the suggestions. I ended up paying the Collection Agency when I realized that I had received/forgotten about them four years prior. I suppose I could write a Goodwill letter to the Collection Agency and see if they will remove but would it be worth my time to write Transunion, the only credit bureau that the CA reported to, to see if they can note the account paid in full and hope that my score my go up a bit. The whole reason for this is because I'm trying to get my credit up to buy another house and I haven't been late on anything well over one year but it's things like this that keep happening and dragging my score down.

Re: Collection after four years

llecs — Wed, 03 Dec 2008 16:10:31 GMT

tull3292 wrote:
Thanks for all of the suggestions. I ended up paying the Collection Agency when I realized that I had received/forgotten about them four years prior. I suppose I could write a Goodwill letter to the Collection Agency and see if they will remove but would it be worth my time to write Transunion, the only credit bureau that the CA reported to, to see if they can note the account paid in full and hope that my score my go up a bit. The whole reason for this is because I'm trying to get my credit up to buy another house and I haven't been late on anything well over one year but it's things like this that keep happening and dragging my score down.

Your FICO could drop if you write that letter to TU. Whether you owe $0 or $10,000, the damage to your FICO is the same. In fact, asking them to update would change the "update" or "reported" date. FICO may end up reading it as a new CA and could possibly drop your score.

All you can do is to send a GW. In the future, you should DV them then offer a PFD and then pay if they accept it.

Now under a manual review, a $0 balance would look better.

Re: Collection after four years

Anonymous — Thu, 04 Dec 2008 07:54:17 GMT

Do not even think to go near a CRA with that idea - Ilecs is 150% right - the CRA would ding you no matter what. GW the City and the CA. leave the CRA alone.

Re: Collection after four years

Anonymous — Thu, 04 Dec 2008 13:45:29 GMT

I will write a GW letter to the city and CA. What do you mean "you sholud DV then then offer a PFD"? I've already paid the CA off once I received a copy of the tickets. This is the first time I've written a letter so I'm kind of unsure on what to say in the letter to the city and CA...any suggestions?

Re: Collection after four years

llecs — Thu, 04 Dec 2008 14:01:35 GMT

tull3292 wrote:
I will write a GW letter to the city and CA. What do you mean "you sholud DV then then offer a PFD"? I've already paid the CA off once I received a copy of the tickets. This is the first time I've written a letter so I'm kind of unsure on what to say in the letter to the city and CA...any suggestions?

I had said, "In the future...." you should DV then PFD. If ever placed in a situation again where you have a CA reporting, DV them first. If they verify to your liking, then offer a PFD and if accepted, they will delete it. When you pay without a PFD, you lose all leverage to get them to delete. If you send a GW, and I do recommend you do, they have no reason to delete. Whereas, if unpaid, most will accept a PFD because they want their $$$.

IMO, don't worry about the city right now if they are not reporting. Send a GW to the CA and, IMO, thank them for accepting your payment and ask for deletion. Search around for "GW Example" and you'll find some good examples. Send the letter reg. mail with a stamp.