topic Re: Advice on Collection in Rebuilding Your Credit

Advice on Collection

Anonymous — Thu, 01 May 2008 01:37:45 GMT

I have a collection Item on my credit report. I bought some stuff in 2002 under the assumption that I did not have to pay interest for two years, but I did not pay attention to the detail that if I did not pay the money back in two year, the credit card compnay will charge me interest for the two year too. in 2004 they increased my balance drastically because of interest, so I told them either get the money that I owe without the interest or I would not pay anything. I stopped making payments and the credit card company did not negotiate and sent it to collection in 2005. I am looking for ideas how to resolve the situation. The rest of my credit cards are in good position meaning balance is below 25% of the limit.

My Equifax report shows a different collection agency than the transunion report,

Equifax does not show anything about the original creditor but transunion shows 0 balance from the original creditor.

I read from an article on MSN Money that if I pay the full amount to the original creditor on the condition that they will remove this account COMPLETELY from my record, they might do it. However if the original creditor have right it off then there is no way to remove it completely, its best to settle it.

How do I confirm that original creditor has not write off my account since I have different verison on my credit report?

Any negotiating tip if I decided to settle it, what percentage of the balance I should pay?

Is it a good idea to put a block on my credit history so nobody can look at it without my approval, as I have seen on my transunion report that the current collection agency had an inquiry on it without my approval, can they do that??

Sorry for the long post.

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 01:44:56 GMT

dizzlews wrote:
I have a collection Item on my credit report. I bought some stuff in 2002 under the assumption that I did not have to pay interest for two years, but I did not pay attention to the detail that if I did not pay the money back in two year, the credit card compnay will charge me interest for the two year too. in 2004 they increased my balance drastically because of interest, so I told them either get the money that I owe without the interest or I would not pay anything. I stopped making payments and the credit card company did not negotiate and sent it to collection in 2005. I am looking for ideas how to resolve the situation. The rest of my credit cards are in good position meaning balance is below 25% of the limit.

My Equifax report shows a different collection agency than the transunion report,
Equifax does not show anything about the original creditor but transunion shows 0 balance from the original creditor.

I read from an article on MSN Money that if I pay the full amount to the original creditor on the condition that they will remove this account COMPLETELY from my record, they might do it. However if the original creditor have right it off then there is no way to remove it completely, its best to settle it.

How do I confirm that original creditor has not write off my account since I have different verison on my credit report?

Any negotiating tip if I decided to settle it, what percentage of the balance I should pay?

Is it a good idea to put a block on my credit history so nobody can look at it without my approval, as I have seen on my transunion report that the current collection agency had an inquiry on it without my approval, can they do that??

Sorry for the long post.

When the OC writes off a debt(or charge-off) they will list your balance at $0.

What is SOL in your state?

There is differing opinions on whether CA's have PP to pull your credit report or not. Nothing really set in stone(such as a law that addresses it)

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 01:47:10 GMT

What state are you in? You need to know your SOL.

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

MSN Money has misinformed you.

You will have to contact the Original Creditor to see if they still own the account.

A CA trying to collect on a debt you owe does have PP to pull your reports.

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 02:36:17 GMT

Capital One and other OCs have Charge Off but still showing balance which is killing my utilization. When it is Charge Off, can I dispute to get balance changed to 0?

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 03:10:20 GMT

written contract is 10 years and open account is 6 years. i m not sure which category i fall in.

what should be the strategy to settle?

hiring an attorney is a good idea?

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 03:22:11 GMT

Does SOL change if you move your state of residency?

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 03:25:56 GMT

You are still within SOL either way. (I do believe it is an open account)

Since you are still within the statues of limitations, you are more than likely looking at having to pay in full. If they settle for less, they will probably only mark your account as such on your reports. This will help in scoring purposes since it will lower the UTL if this is reporting a high balance. The best bet would be a PFD if you can get one.

If you are in the position to pay this, I would send a DV to the CA. You need to be sure they are the correct person to be collecting on this, etc.

Attorney would be up to you. I don't see needing one at this point, unless they sue.

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 03:26:17 GMT

dizzlews wrote:
Does SOL change if you move your state of residency?

They can go by either state.

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 03:42:36 GMT

what is a PFD, and what is a DV?

SOL counts from the day I open the account or the day I stopped making payments?

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 04:02:22 GMT

dizzlews wrote:
what is a PFD, and what is a DV?

SOL counts from the day I open the account or the day I stopped making payments?

PFD is pay for delete, a DV is a letter to the CA to request Debt Validation.

SOL would start depending on your state laws. Date of first delinquincy or date of last activity. Either of those. It doesn't go by when the account was open.

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 04:09:06 GMT

In case of Pay for delete, do they COMPLETELY delete from my credit report?

can I do insttallement on PFD?

Re: Advice on Collection

Anonymous — Thu, 01 May 2008 04:27:01 GMT

dizzlews wrote:
In case of Pay for delete, do they COMPLETELY delete from my credit report?

can I do insttallement on PFD?

Well, I see no way for a partial delete.

If you cannot pay it all at one time, it would have to be an agreement worked out (in writing of course) that both parties agree to. PFD should alway's be in writing regardless. CA's are not known for being very honest.