topic Re: Please HELP with this situation in Rebuilding Your Credit

Please HELP with this situation

Anonymous — Mon, 18 May 2009 20:42:19 GMT

Hello,

I have been researching these boards for a while now and learning alot. However in between the mix of all the info, I have gotten a little confused. So I decided to explain my specific situation to get some advice.

I am working to improve my credit over the next year being that I plan to purchase me a home next year.

I have 4 negative items on my credit report. (I had 5 but while working with lexingtonlaw they got one deleted, however the more and more I read, the more I see I can do this myself. Because their process is just as SLOW as me doing it myself.)

Anyways, so I have 4 negatives. 2 charge-offs that seem to still be with the OC. Not reported anywhere else on the account but with the OC as a charge-off. I am prepared and willing to pay these two debt bc I know they are mine and that I owe it. Just trying to understand how to fulfill my obligation while helping my score and my chances of getting a home loan. Any suggestions?

Secondly, I have 2 collection accounts. I have consistently read to send a debt validation to the CA, then if they respond send a PFD, and if they don't respond within 30 days that I can dispute with the CRA's to have it deleted. Am I correct? If not can someone explain the process in detail.

I have already drawn up ALL my letters for each tradeline. Debt validation for the CA, debt verification for the OC, and PFD to all of them.

I really enjoy this website and I hope you all can help me through this process.

BTW: after the deletion by lexingtonlaw for the one collection my score went up 54 points with EQ, 0 with EX, and 65 with TU. YAY!!!! that really made me excited to keep pushing.

Currently:

EQ: 577

TU: 517

TU: 594

Reaching for 700 by March 2010

Thanks again!

Re: Please HELP with this situation

Anonymous — Mon, 18 May 2009 22:14:07 GMT

Your priority should be the two charge offs that are still with the OC. The OC can, at any time, assign or sell those debts to a CA, and you really don't want more entries about the same accounts if you can help it. You can try to negotiate an amount, but if you "settle" the accounts, that will show as a negative on your reports. They might take a lesser amount, and that might be more important. But I think PIF is probably best in your situation. You can go for PFD, but I think that's rare with OC's.

The 2 CAs: If the CA does not respond to the DV with the required (minimal) information, then you can probably get the entry removed. Most CAs respond timely, and with the appropriate information (though there is some debate about what that means on the boards). If they don't respond, then you DV again, then when they don't respond, you send in your info (copies of green cards, etc.) to the CRAs.

There is no obligation for them (OC or CA) to respond to the PFD. Remember, you're asking them to do you a favor that they don't have to do, and that they generally don't want to do. So if they respond to the DV, send a PFD. You might have to send several PFDs to get a response, or to talk them into going for your offer. The closer to PIF you get, the more likely they'll go for the PFD, but there are no guarantees. If they won't take the PFD, then you have to decide if you want to pay it anyway or not. There are reasons not to pay: for instance, recent activity can make it look more recent than it is, and paying off a charge off usually won't raise your score because it stays a charge off on your reports. I think that generally, you should pay your debts, but you'll have to do the cost benefit analysis in the end--is it worth it to pay it off even if it won't help your score?

Also, no need to DV the OC. They don't have an obligation to DV. And it sounds like those are legitimate anyway.

Re: Please HELP with this situation

Anonymous — Mon, 18 May 2009 23:09:34 GMT

You need to know what the DOFD is before touching your CR. If you are not past SOL they might file a lawsuit.

Always know your SOL.

Most CCC will not delete after CO. FICO scores paid and unpaid the same!

If you are past SOL then you would send a DV CMRRR before a dispute.

If you dispute or send a DV and you are within SOL be ready to PIF. They usually will not accept a PFD.

Always DV before thinking of a PFD.

Any collection that is medical is different. go to the medical collection board.

Message Edited by HappyDays on 05-18-2009 04:09 PM

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 00:21:29 GMT

Are the OCs reporting a balance? If so, they likely still own the accounts. If you can PIF, try to negotiate with them to pay them directly and leave any CA they mention out of it. As for settling for less than full, that is a negative, but the same as a CO, so no difference there as far as scores. Lenders would rather see a PIF than a settled for less, but you have to do what is best for you financially as well.

To clarify what others have said, a paid and unpaid collection is the same to the FICO score. However, paying a CO reporting by the OC with a balance, paying it could increase your scores. Accounts reported by the OC with a balance are still calculated in your util %.

What is the DOFD and last reported/updated date for all 4 negatives.

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 00:35:04 GMT

i found some more info regarding the CO accts

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 00:38:20 GMT

it wouldn't let me post..sorry. So one of the CO are with WFNNB/VCTRIA and they are the ones reporting it on my CR's with a balance. I called to attempt a PIF to delete or update and they said it was in collections with nations recovery center and gave me a number. However, the CA is not reporting on my CR's. account has been CO since november 08. last activity feb 08.

the other CO is with USAA, I haven't made any contact with them yet.

what now?

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 00:42:14 GMT

Call them back and see if they will accept payment. If they won't, ask if they sold it to the CA or just assigned it to them.

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 00:49:56 GMT

will not accept payment has already been taken over by the collection agency.

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 01:01:29 GMT

You want to act before the CA reports.

Search this forum for that CA and see about other's experiences with them.

Then I would DV immediately folllowed by a pay for not reporting.

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 01:10:43 GMT

i found no info on this company. even searched google. I did find the CA website which has an address on it. Should I send a DV to that address. Should I call and see if I can arrange something via phone and have something in writing sent out before making the payment, being that the DV may not arrive before that start reporting on my CR

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 01:14:53 GMT

It is usually not suggested to call a CA.

However, you for certain want to contact them before they report.

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 01:17:51 GMT

ok, so let's say i get the CA to agree to accept PIF to not report the TL. What will happen to the one reporting by the OC that still shows a balance?

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 01:20:06 GMT

Kaiden1215 wrote:
ok, so let's say i get the CA to agree to accept PIF to not report the TL. What will happen to the one reporting by the OC that still shows a balance?

The OC will have to update to $0 balance. You can then send them GW to remove if you wish. However, when was this account opened? Do you have other accounts opened this long ago?

Re: Please HELP with this situation

Anonymous — Tue, 19 May 2009 01:23:13 GMT

this account was opened in 9/2006. I do have an account that is older than this one that is in good standings. opened 9/2005.