topic Re: DV response from CA.. Need your response please.... in Rebuilding Your Credit

DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 03:29:39 GMT

Hello All...

I received a letter from the CA about a CO collections (also reported on my CR) from my CC (HSBC) on12/8/08. I then DV'd them couple of days after that. Today, received their response with the OC's address, the amount and accrued interest and the CO date. My CO account is past the SOL.. and should fall off my CR in 2011..

So, now that they validated... How do I offer them a PFD that they will accept? Will it still affect my score since the account is old?

Please advise.. help...

Thank you

Re: DV response from CA.. Need your response please....

gdtobefree — Sat, 27 Dec 2008 03:42:26 GMT

Did they send you a generic computer generated statement or an official statement from the OC?

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 03:44:17 GMT

DeeBee,

welcome. You can search for PFD letters on this site. There is a number of them you can use as template.

If the debt is out of SOL, and is scheduled to drop off in about 2.5 years, I would not pay more than 35%.

The way I calculate this is about 15-20% of a debt that is out of SOL, plus about 10% per year left to report, as I assume you'd see it off your report sooner rather than later for your own reasons.

I would start offering about 30% of the original amount and give them 2 weeks to respond.

Then, if nothing happens in two weeks, I would send anothe PFD in about another month, lowerign the offer to 25%. And so forth until you get to 0.

Could it affect your score? sure it could, as it is an old account, but collections and COs count a lot as negatives, so you might end up even, or up a few points. However, it would look much better at manual review, and your score would start climbing back up much faster than with the collection still there.

good luck!!!

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 03:51:56 GMT

The CA just sent their response using their letterhead and stated the OC name + account #, date that led to CO (7/1/04)

date that the OC sold the accouint to the CA (8/15/06) they also stated the principal amount, interest accrued up to this date.

Are those enough info from them?

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 03:59:02 GMT

I think it meets the FDCPA requirements - a simple statement with OC name, address and original amount is all is required.

Yet, if you were to argue this all the way to court, this would not meet the minimum bar to prove validity of a debt.

Anyway, you don't care, because it's out of SOL and you are not going to court.

For your purpose, if the information if enough for your to determine whether you want to proceed with a PFD, it seals the deal.

good luck!!

Re: DV response from CA.. Need your response please....

RobertEG — Sat, 27 Dec 2008 04:09:22 GMT

DeeBee, the account will remain in your CR and affect your score, whether or not you pay it (unless you get a PFD deleltion acceptance from the CA), for 7 1/2 years from the DOFD on the account. Paying without their agreement to delete the acount from your CR wont help FICO scoring, but it will eliminate the threat of a debt collection lawsuit.

The first question to ask yourself is whether you agree that you owe the debt.

From what you have said, they have properly DVd you, so they can now continue collection activity. The fact that they validated (which they dont have to do) is an indication that they will actively pursue collection.

You say that your state SOL has expired. I dont dispute your conclusion, but be very sure of this first. Some states SOL laws will consider any offer to pay as a reset of the SOL. If you offer to PFD, it may reset your SOL. You need to research your state SOL code for debt collection, and be sure. The credit report dropoff date has NOTHING to do with SOL.

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 04:10:02 GMT

demed...

If the debt is out of SOL, and is scheduled to drop off in about 2.5 years, I would not pay more than 35%.

The way I calculate this is about 15-20% of a debt that is out of SOL, plus about 10% per year left to report, as I assume you'd see it off your report sooner rather than later for your own reasons.

I would start offering about 30% of the original amount and give them 2 weeks to respond.

Then, if nothing happens in two weeks, I would send anothe PFD in about another month, lowerign the offer to 25%. And so forth until you get to 0.

good luck!!!

___________________________________

When I offer the CA my PFD, do i include the amount they are charging me for interest or just the original amount from

the OC..

The OC's original amount is $2,162 and the interest the CA is charging me is $2,272 which totals up to $4,434..

The

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 04:27:38 GMT

I would consider 35% of the original amount - the interest and charges, if applied by the CA don't matter (in my opinion).

I would simply offer a $$$ amount and percentage, without stating any motive for how you got to the actual number, nor I would mention the amount they stated with their interest and charges.

I would simply refer to the account number and state something along these lines:

______________________

The Statute of Limitations for enforcing this type of debt through the courts in XXXXXXX and at Federal level has expired. However, in the spirit of compromise, I am willing to pay $XXXXX or 35% of the amount originally owed on this alleged account if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

______________________

good luck!!!

Re: DV response from CA.. Need your response please....

RobertEG — Sat, 27 Dec 2008 04:46:38 GMT

demed has made an excellent suggestion, for it nails down the PFD offer to a specific amount that is not related to onging, and daily charges that the CA may later say have not been fulfilled, even if you meet the PFD today. It goes back to the original OC debt only. An amount specific.

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 10:31:41 GMT

DeeBee18 wrote:
Hello All...

I received a letter from the CA about a CO collections (also reported on my CR) from my CC (HSBC) on12/8/08.

Is the CA reporting or just the OC?

If the CA isn't reporting, you want to send a pay for not reporting, not a pay for deletion.

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 21:30:49 GMT

Thank you all for all the response. It helped me a lot in understanding the PFD process. I will keep you all updated...

Have a great new year!

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 21:38:16 GMT

Sidewinder's message

Is the CA reporting or just the OC?

If the CA isn't reporting, you want to send a pay for not reporting, not a pay for deletion.

______________________________

Sidewinder..

Both the OC and CA are reporting..

OC is reporting as CO with 0 balance and sold it to the CA, which also is reporting on my CR..

**** But i have another CC (discover) CO account that the OC is reporting still with a balance and i also received a letter

from a CA few months ago regarding the account but up to now, the CA is not reporting on my CR as of yet.. *** How do i

move forward with that situation? do i send the CA a pay for not reporting? or contact the OC first and see if they will PFD?

OC reported

Re: DV response from CA.. Need your response please....

Anonymous — Sat, 27 Dec 2008 23:03:38 GMT

DeeBee18 wrote:

**** But i have another CC (discover) CO account that the OC is reporting still with a balance and i also received a letter
from a CA few months ago regarding the account but up to now, the CA is not reporting on my CR as of yet.. *** How do i
move forward with that situation? do i send the CA a pay for not reporting? or contact the OC first and see if they will PFD?

OC reported

How old is the CO? Is it beyond SOL? Can you PIF?

Remember, even negative TL count in age when reported by the OC, collections do not.

So, removing it could decrease your age of accounts, and cause a decrease in score.

With that being said, you have more than 1 option.

1) You can try to ask the OC to remove the account from collections and allow you to PIF.

2) You can try to ask the OC to remove the account from collections and agree to a PFD.

3) You can negotiate a pay for not reporting with the CA.

Unless the account is beyond SOL or you can PIF, I would opt to let it ride for now and be saving the money to PIF.

Re: DV response from CA.. Need your response please....

Anonymous — Sun, 28 Dec 2008 03:17:04 GMT

How old is the CO? Is it beyond SOL? Can you PIF? -- The CO account is over 4 years old, way back in 2004. Yes i can PIF.

Remember, even negative TL count in age when reported by the OC, collections do not.

So, removing it could decrease your age of accounts, and cause a decrease in score.

With that being said, you have more than 1 option.

1) You can try to ask the OC to remove the account from collections and allow you to PIF. - - Do I also send them a letter stating that or just phoning the OC will suffice?

2) You can try to ask the OC to remove the account from collections and agree to a PFD. - - Do I also send them a letter stating that or just phoning the OC will suffice?

3) You can negotiate a pay for not reporting with the CA.- - Is this the route I will take if the OC denies my request to PIF them or to keep my account back to normal standing? and also is there a letter that i can use for the CA for "pay for not reporting" ?

Unless the account is beyond SOL or you can PIF, I would opt to let it ride for now and be saving the money to PIF.

** Sorry for all the questions, I just want to make sure I'm on the right pace with this process and again , I thank everyone that are taking their time to reply to my questions*** I really appreciate all the help towards rebuilding my credit..

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