topic Re: 11 Collections!!!!! What should I do?? in Rebuilding Your Credit

11 Collections!!!!! What should I do??

Anonymous — Mon, 28 Apr 2008 15:13:42 GMT

Looking at myFico credit report I have 11 collections! And they are all legit I'm embarrassed to say. There is a couple that went delinquent in 2003 and I know that a collection went into effect in 2003 and that same bill has a "Date assigned" as 2006. If one collection agency sells it to another, does that start the date over, and start the 7 year statute of limitations over also?

Looking at these the oldest is in 2004 the newest is 2007 the balance of all collections is $5100. Should I pay smallest to largest or should I pay newest to oldest? I'm afraid to hurt my credit (TU 571) anymore than it already is, we have tried really hard the last 2 years to straighten it out (new house, new car, 4 credit cards, none late) I want to pay all that I can that will benefit us the most. I know to try and pay full balance and to try to negotiate that they remove it from my credit report and have it in writing. I need suggestions to what to pay first. Thank you.

Re: 11 Collections!!!!! What should I do??

Anonymous — Mon, 28 Apr 2008 15:16:59 GMT

I would say start with the most recent CA's, since they are the ones that affect your scores the most.

Once a debt is sold the date shouldn't start over, BUT watch out because some will try to.

Re: 11 Collections!!!!! What should I do??

llecs — Mon, 28 Apr 2008 15:21:15 GMT

I would send DV letters to each of them, especially starting with the newest first. If they validate to your liking, offer PFDs to the ones that validated. Send the letters to the address listed on your CRs.

Warning: sending any type of communication to the CA will cause them to increase collection activities. Only send a DV if you are prepared to pay in full eventually.

There's great DV and PFD examples floating around here somewhere.

Edit to add.................I would also, if you haven't done so, pull all 3 reports directly from each CRA. This is helpful if they try re-age an acct.......as jaybee mentioned.

Message Edited by llecs on 04-28-2008 11:19 AM

Message Edited by llecs on 04-28-2008 11:21 AM

Re: 11 Collections!!!!! What should I do??

Anonymous — Mon, 28 Apr 2008 15:45:22 GMT

Before doing anything with your CR be sure that you know your SOL.

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

Im guessing that you are in Ohio which has an SOL of 6 - 15 years.

Re: 11 Collections!!!!! What should I do??

Anonymous — Mon, 28 Apr 2008 15:47:51 GMT

Remember, paying collections in and of itself will do nothing to improve your credit.

Start with the most recent collection, because removing older collections while more recent ones remain will net you at most 3 to 5 points. Some people have reported NO gain.

As others have said, you want to do a pay-for-delete, but beware, as you are likely still within the SOL period. That means the CA could sue you.

Re: 11 Collections!!!!! What should I do??

Anonymous — Mon, 28 Apr 2008 19:17:57 GMT

Thanks