topic Re: I need some good advice in Rebuilding Your Credit

I need some good advice

Anonymous — Thu, 22 Jun 2017 14:50:27 GMT

I pulled my wife's reports last night. While she has a lot of good history, there are multiple charge-offs and accounts in collections. Some are due to fall off a year from now and all but one in June of 2019. Should I even touch it or proceed with trying clean it up? Will they come after her if something changes?

Also, some are shown twice, both as charged-off by the original creditor and again collections. Can they do that? The owners of her debt are Midland Funding and Investment Retrievers. Does anyone have any experience with these people?

Re: I need some good advice

Anonymous — Thu, 22 Jun 2017 14:52:17 GMT

Where did you pull her reports from?
What is the SOL in your state/jurisdiction?

Re: I need some good advice

ptch7116 — Thu, 22 Jun 2017 15:14:31 GMT

My experience w/ this is only 2nd hand - but it's my belief, that if you engage (in any way) w/ the entity now holding the debt, that the clock can start ticking all over again.

Worse... I also believe that if an old bad debt is ultimately paid, it will be on the report forever (because it was paid). Whereas, a bad debt left-unpaid or in collections will eventually drop off.

If I was only 1-2 years out from all of that being cleared-up, I'd avoid all contact w/ anyone/anything having to do w/ the previous debts.

If any of the above is incorrect, I invite correction.

Re: I need some good advice

Anonymous — Thu, 22 Jun 2017 15:16:40 GMT

I pulled her free reports from annualcreditreport.com. Apparently, the SOL in Texas is 4 years. What does that mean exactly? Also, from what date does that 4 years begin?

Re: I need some good advice

Anonymous — Thu, 22 Jun 2017 15:18:01 GMT

It varies by law, but I usually tell people to get the DOFD, add 2-3 months and count from there to be safe.

SOL means when they can sue you. 4 years after the DOFD means if you're past that, dispute away. Do disputes IN WRITING, USPS CMRRR, and use good reasons for disputing. Don't just dispute "Not mine" or "No knowledge" but try to dispute specifics.

Re: I need some good advice

Anonymous — Thu, 22 Jun 2017 15:30:12 GMT

There are some things that I don't understand. Midland shows an account being opened for collection in 04/2012, but there is a column that says "Date Updated: 06/2017". If the SOL in Texas is 4 years, how can the account be updated 5 years and 2 months later?

Re: I need some good advice

Anonymous — Thu, 22 Jun 2017 15:32:46 GMT

@Anonymous wrote:
There are some things that I don't understand. Midland shows an account being opened for collection in 04/2012, but there is a column that says "Date Updated: 06/2017". If the SOL in Texas is 4 years, how can the account be updated 5 years and 2 months later?

They can update credit reports for 7 years. The DOFD is all that matters.

Re: I need some good advice

Anonymous — Thu, 22 Jun 2017 15:53:43 GMT

Forgive my questions if they appear stupid, but I'm coming from a real position of ignorance here. Midland, for instance, still makes bi-monthly Account Review Inquiries. For what purpose, or is this just a common function of collection companies, even after the SOL?

About the DOFD. For my purposes it the same as the date an account is placed for collection?

Re: I need some good advice

medicgrrl — Thu, 22 Jun 2017 15:54:19 GMT

There are a few dates that you want to know when looking at credit.

The date of first delinquency is the date a person is first late that leads to the charge off status.

The second is the SOL. The statute of limitations is what allows a creditor or debt collector to sue legally (there are collection agencies that will sue outside of the SOL in hopes that you don't show up to court)

The last is the reporting time. A collection or charge off can stay on your credit report for up to 7 years and 180 days from the DOFD.

Paying off a collection or charge of will neither reset the SOL or change the DOFD. But if you make a payment plan and fail to complete it, you can reset the SOL.

If the charge off's are revolving accounts and showing a balance, they may be hurting her score by remaining unpaid. Midland has a policy that if you pay off the account and the DOFD was over 2 years ago, they'll delete their account from the reports. This does not delete the OC account though.

Personally, I would work from the newest to the oldest and maybe she won't have to wait until 2019 to have a clean report.

Re: I need some good advice

CYBERSAM — Thu, 22 Jun 2017 17:36:58 GMT

To my experience debts just don't go away! Especially if they are credit card debts. It is possible that some collection agencies stop reporting due to many reasons( likely going out of business) but very likely some other company is going to buy all of their accounts and try to peruse it again and start new reports on the credit bureaus.

Is best to try to pay or settle the debts as soon as you can so it dose not follow you for years to come.

Thats just my experience. Good Luck.

Re: I need some good advice

rmduhon — Thu, 22 Jun 2017 19:14:05 GMT

Contacting a creditor will NOT reset the credit reporting time period. And a debt (excluding federally backed student loans, judgements, and some tax leins) has to be excluded no later than 7.5 years from the Date of First Delinquency, paid or not.

Re: I need some good advice

Anonymous — Fri, 23 Jun 2017 01:23:15 GMT

After speaking with my neighbor whose gone through all of this before, eventually making his way from the 400's to 800's and have decided to take a wait and see approach. He looked over the reports and believes my best option wait and let the adverse account fall from the report, which, miraculously, all fall off next summer but one. The account that is scheduled to fall off in 2019, will be settled, as it is a medical collection of less than $100.

That said, he reasoned with me that collection agencies break the law every single day and that I would have to be vigilant in monitoring her report for those changes. I hope and pray all goes as scheduled. I will dispute the bad addresses, name spellings and the like, but little more than that until next summer.

Re: I need some good advice

gdale6 — Fri, 23 Jun 2017 01:12:03 GMT

@Anonymous wrote:
After speaking with my neighbor whose gone through all of this before, eventually making his way from the 400's to 800's and have decided to take a wait and see approach. He looked over the reports and believes my best option wait and let the adverse account fall from the report, which, miraculously, all fall off next summer but one. The account that is scheduled to fall off in 2019, will be settled, as it is a medical collection of less than $100.

That said, he reasoned with me that collection agencies break the law every single and that I would have to be vigilant in monitoring her report for those changes. I hope and pray all goes as scheduled. I dispute the bad addresses, name spellings and the like, but little more than that until next summer.

For unpaid medical debt that is reporting on your CR:

1. Call the OC and see if you qualify for Charity Care
2. If not then ask that they recall the collection in exchange for full payment
3. Send the reporting CA a PFD offer
4. Google the HIPAA Process and contact its creator for help

The max time an item can remain on file is 7.5 yrs from the DoFD nothing can change it and the clock does not restart if you settle older debts. As far as states SOL you can still be sued at anytime and it would be up to you to defend against said suit with the SOL as rebuttal.

Re: I need some good advice

Anonymous — Fri, 23 Jun 2017 01:24:49 GMT

Thanks so much, you're all so helpful! I'll get moving on that tomorrow morning.

Re: I need some good advice

Anonymous — Fri, 23 Jun 2017 02:17:06 GMT

Could you expand on DoFD for me, I'm still a little hazy on it. My neighbor seems to believe that the very first time an account goes thirty days past due, that is the DoFD, but that makes little sense to me. Wouldn't it be the 120-day past due the month before charge-off or beginning on the 30-day that eventually leads to the charge-off a few months later? Thanks.

Re: I need some good advice

rmduhon — Fri, 23 Jun 2017 06:48:29 GMT

The DoFD is the first late that leads directly to the charge off. For example, if you were 30 days late in Sept of 2014 but brought the account current in October/November then there is no DoFD. But if you were 30 days late in Sept of 2014 and never brought the account current then Sept of 2014 would be the DoFD.

Re: I need some good advice

Anonymous — Fri, 23 Jun 2017 08:29:20 GMT

Thanks a million, rmduhon.