How would you go about dealing with these two collections?

[atl]

Hello all! I just signed up with myFICO so I wouldnt be in the dark about my credit. I have two unpaid collections. They are medical bills from emergency surgery and I was between jobs with no insurance. One is for $1,000, and the other is for $170. They just were reported at the beginning of last year, and I completely forgot about the bill, and I also really wasnt thinking about my credit score at the time. I really dont know if I should just start paying on these, or if I should settle or what? What would you do? I have the cash to pay these off, but if I can avoid that it would be great because I am a student and I am trying to keep an emergency fund. Thanks!!

[Nectarine]

Since they are correct, you can do what's called a "Pay for Delete," which means you send a letter asking that they delete the collections from your CR in exchange for you paying it off. Be prepared to pay it off when you contact them, because they may well take you up on the offer! I'm working with my CAs right now with the same thing.

Do a search for "PFD" on this forum and you'll come up with good example letters.

Good Luck!

Griffin

[Anonymous]

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Nectarine wrote:
Since they are correct, you can do what's called a "Pay for Delete," which means you send a letter asking that they delete the collections from your CR in exchange for you paying it off. Be prepared to pay it off when you contact them, because they may well take you up on the offer! I'm working with my CAs right now with the same thing.

Do a search for "PFD" on this forum and you'll come up with good example letters.

Good Luck!

Griffin

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Also, if CA's are not willing to offer PFD, I would contact OC directly, and ask them to pull back from CA. Offer PIF to OC for removal from CR. I have read on forum, that others have had success going through OC when CA's refuse to work with you, however not always. Anything is worth trying, if you are offering to PIF.

[Nectarine]

I hadn't thought about that. Of course all of my debt has been sold to CAs, instead of the OCs just hiring them to collect on their behalf.

[atl]

Thanks! I already printed out the PFD form. One question...the beginning of the letter says: This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digit I mean, I remember talking to these people a long time ago so Im guessing I should omit the "validity of this debt is dispute blah blah"? Also, I found out the account number so Im assuming I should remove the "I am not sure of the account number". Does it really matter if these lines are removed, and reforming the first paragraph? Thanks again!!

[Nectarine]

Hey no problem! You should use those letters as examples though, just change up the parts that don't fit your situation before printing. You can use OpenOffice or google docs to make documents if you don't have MSWord or notepad.

Just remember not to sign them.

[Junejer]

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@atl wrote:
Thanks! I already printed out the PFD form. One question...the beginning of the letter says: This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digit I mean, I remember talking to these people a long time ago so Im guessing I should omit the "validity of this debt is dispute blah blah"? Also, I found out the account number so Im assuming I should remove the "I am not sure of the account number". Does it really matter if these lines are removed, and reforming the first paragraph? Thanks again!!

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To answer your question, the abbreviated account number is okay. Welcome to the forums atl. Please read credit scoring 101 and some of the other stickied threads here, as embarck on your quest for credit knowledge.

My opinion is also that you always DV before offering a PFD. It is also advisable to work with the OC if at all possible. Call the OC and see if they still own the account. If they don't then check on your state's SOL and understand what your DOFD/DOLA is before DVing the CA.

[Anonymous]

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atl wrote:
Thanks! I already printed out the PFD form. One question...the beginning of the letter says: This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digit I mean, I remember talking to these people a long time ago so Im guessing I should omit the "validity of this debt is dispute blah blah"? Also, I found out the account number so Im assuming I should remove the "I am not sure of the account number". Does it really matter if these lines are removed, and reforming the first paragraph? Thanks again!!

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Can you give more  info on accts?? DOFD,DOLA. Are you attempting to deal with the CA or OC???

[atl]

Well, I dont know exacts...I am dealing with a CA. This is off my CR for both of the bills: (not sure of DOFD)

Date assigned: Nov 09, 2006
Date reported: Jan 09, 2007
Date last active: Not Reported

Basically everything else for the two bills are "Not Reported" I never paid one cent on either. Perhaps I will call the OC tomorrow and see what is up. This was way long ago so Im guessing they will no longer own anything.

Do I need to DV if I know that these are my bills?

Message Edited by atl on 04-14-2008 09:11 PM

[Junejer]

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@atl wrote:
Well, I dont know exacts...I am dealing with a CA. This is off my CR for both of the bills: (not sure of DOLA or DOFD)

Date assigned: Nov 09, 2006
Date reported: Jan 09, 2007

Basically everything else for the two bills are "Not Reported" I never paid one cent on either. Perhaps I will call the OC tomorrow and see what is up. This was way long ago so Im guessing they will no longer own anything.

Do I need to DV if I know that these are my bills?

Message Edited by atl on 04-14-2008 09:05 PM

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atl, is the OC reporting on your CR at all? The OC may very well own the account. There is no set time that an OC must sell an account to a CA or JDB. You need to know the DOFD/DOLA. You can get this from any info that is reported by the OC. You can call the CRAs too.

The purpose of a DV is to ask the CA "who are you and what is YOUR right to collect from me?" After all, we don't want to pay the wrong people. Therefore, they have to prove that they are the ones that you should pay. If they are able to validate, then you need to be ready for PFD.

Of course you don't need to do anything, but I would strongly suggest that you do so for your own protection.