topic Re: old collections in Rebuilding Your Credit

old collections

Anonymous — Sat, 31 Jan 2009 06:14:31 GMT

Hello,

I have 2 collections in my record that are 2 to 3 years old and a total amount of $2,180. I have used a credit score simulation and it suggested that it will not change my score even if I pay them off. But I would like to pay them off, if it increases my score.

So I was wondering if you have any suggestions regarding this. Are simulators correct all the time?

I would greatly appreciate your help.

Thank you

Jimmy

Re: old collections

oracles — Sat, 31 Jan 2009 06:29:54 GMT

Hi Jimy and welcome to the forums

You actually posted this in the wrong forum, You should post this in the rebuilding your credit forum. You will get more responses. Hopefully a moderator will come soon and move it for you.

However I will still answer your question.

Paying your collections will not increase your score. However many lenders do not just go off of score alone. They do manual reviews and a paid collection looks far better than an unpaid collection. Also if you are going for a mortgage using a FHA loan, all collections need to paid.

I would advise you to do research on here about pay for deletions. PFD

Call the collection agency and let them know you are willing to pay however only for a pay for deletion. You will pay but they will delete it from your report. Make sure you get it in writing to make sure you cover yourself if they don't do it. You can then fax it to the credit bureaus and have it deleted.

Make sure you are going to pay it off because if not, you have just reset the DOFD and SOL is reset again.

If you have not already, do a search on here about DOFD and SOL.

Hope this helps and keep us updated

Re: old collections

Anonymous — Sat, 31 Jan 2009 06:59:25 GMT

Thank you oracles for your great pieces of information. I didn't know that I needed to have all collections paid of for mortgage loan also I didn't know that I could pay for deletion.

I will try to move it to rebuild credit forum.

Thank you

Jimmy

Re: old collections

Anonymous — Sat, 31 Jan 2009 12:22:34 GMT

Are these collections from the creditor or from a collection agency? If not from the creditor and from a collection send a cease and desist letter first to the collection agency. In the letter also inform them to remove immediately from your credit report any negative information or you will sue them. This is completely legal as you do not have to deal with a collection as you did not have the debt with them regardless or not if they bought or are "servicing" the debt.

If it is the creditor do not send one penny to them unless they put in writing that they will remove it completely from all credit bureaus if you pay. You're better off being able to pay in full over making payments as if you're only able to make payments they may not remove it as easily.

Re: old collections

Anonymous — Sat, 31 Jan 2009 12:48:51 GMT

Thanks FLDEAN. What if I already paid a collection.

I had one other account that also went to the collection agency. I was able to settle the debt with less than the actual amount. Now on my credit report it says "Account legally paid in full for less than full balance".

Is there any way I could ask them now to remove it?

This forum is really helpful. I wish I had found out about this forum before.

Thank you

Jimmy.

Re: old collections

Anonymous — Sat, 31 Jan 2009 13:39:06 GMT

You can ask, but it is doubtful at this point they will. By paying them you lost all bargaining power. In the future you should never pay a collection agency anything. Always pay the original creditor to who you opened the account up with.

Re: old collections

Anonymous — Sat, 31 Jan 2009 17:04:00 GMT

Hi jimy, If you already paid then all you can do is send GW letters.

You need to know what your SOL and DOFD/DOLA is on these collections. Who is reporting...the OC, CA or both?

Never talk to a CA! everything by mail! Never send a PFD until after they answer a DV.

Never touch or do anything about baddies unless you are past SOL. If you do be sure to have money to PIF if sued!! If within SOL and you want to PIF try working with the OC first!!!

Please read credit scoring 101 this will give you info. on how your scores work. This link also has all the abbrevs that we use and the frequently requested thread. They are all listed by abbrevs.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=6834

SOL by state

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

Never send a cease and desist letter to anyone unless it is a CA reporting or mailing you a letter about a debt that is past SOL or CRTP. If you are within SOL the next notice that you might get from the OC or CA might be a summons to appear!!!

Post what the collections are and....what they are for ( CC,installment loan, utilities etc) and what the DOFD/DOLA and your SOL is.

With complete info. from you we have a better chance of helping you with which letter to send & to whom.

Please ask as many questions as you need!!

Message Edited by HappyDays on 01-31-2009 09:04 AM