Question about Collections Account

[Anonymous]

Hello, I posted this in the bankruptcy forum, but didn't get any replies... I was curious if I can (or if I should) try to PFD a collections account which was declared under Chapter 7 bankruptcy. It isn't scheduled to be removed until 2014, so I was hoping that there was something that I could do to get it off of my credit. I already have the bankruptcy to deal with, so if it will be of any benefit to get it off at all, I want to get it removed. Thanks in advance!

[Anonymous]

Also, I have several accounts that were discharged via Chapter 7 which are showing as being "Written Off" rather than "Included in Bankruptcy" and these accounts still show a balance. It doesn't seem like this should be right, but I really don't know for sure. If this is wrong, do I DV these (using this process: http://ficoforums.myfico.com/fico/board/message?message.uid=7133#U7133), or do I do something else?

[athensguy]

You should in touch with your BK lawyer and have him send them letters reminding them they aren't allowed to attempt collection, and that they must be reported as IIB with a DOFD the same as your BK at the latest. If they don't fix it, you can sue them.

[Anonymous]

Ok, I see what you are saying. Let me clarify a little bit before I go and stir that pot. I have several OCs which have accounts which are not listed as IIB. These would go through my BK lawyer? Also, is that my only option? It kind of sucks to have to pay his hourly rate just to get something accomplished that these companies should have done on their own. I was just hoping there was something I could do on my own without involving him (yet).

Also, can I try to PFD the 1 collection account that was under my bankruptcy? They aren't attempting to collect on it, it's just annoying to me that it's on there, and it is less than $100 so I'd love to get it completely deleted.

[athensguy]

Before you dispute online, you should write the OC and tell them to report correctly. Your BK was on XXX and their account was included. Reporting incorrectly is a violation of the FCRA, etc. Not really a DV, because OCs don't have to respond to a DV. More of a report correctly, or I'll have to do something about it. If they don't fix the reporting, then you can dispute with the CRA. Disputing through the mail works better than disputing online. If they verify, send them a MOV. Then sue. Sometimes your individual state will have more stuff that you can do, too.

Sure, you can try to PFD that collection if you want.

Tell them "This account was IIB, but you are reporting that it wasn't, which is a violation of bankruptcy laws and the FCRA. If you remove it from my reports completely, I'll pay you the full amount"

Grammar and wording should be changed from that. Make it your own words and make it wordier and don't use abbreviations.

You don't have to send these letters through the lawyer, but sometimes these companies, which are generally very anti-consumer, especially if you have defaulted, generally do not care if they are following the law, and you have to force them to do things the right way. Sending through the lawyer may add weight to your complaint. If you don't want to pay him for it, by all means do it yourself. If I were you I'd take a few days and read up on disputing and DV and OC letters and such before doing anything.

[Anonymous]

Thanks again. Maybe I'm thinking about this totally wrong. Will disputing with the OC really benefit me? Wouldn't the same effect be accomplished by filing a dispute with the CRA?

My next question is whether getting my CR updated with these multiple accounts being changed from write off to IIB will really help my credit. I would think so, because several of them still show with balances being owed, and when they get set to IIB, that balance should go away, right? However, there is at least one that shows as write off with a 0 balance. Would getting that changed from write off to IIB have a positive, negative, or no impact on my FICO score?

Also, I've saw posts that say I can PFD an OC. I have some low amount accounts which were included in the bankruptcy; can I still PFD these even though I don't dispute their validity, or is that no longer an option after they are discharged? If this is an option, would I follow the same format as a standard PFD, or would significant changes be required? Is this even a good idea?

Thanks again for your help.

[Anonymous]

Somehow I ended up with more than one User ID, LOL. Anyways, here is an example I had and I was hoping that someone could help me understand what would be the best course of action for this account. Here is how it shows up from the MyFICO site:

Balance [?] Current Status [?] Past Due Amount [?]
$6,175 Bad debt/collection $949

However, this account was discharged in Bankruptcy. Shouldn't it show with a $0 balance? How much will getting this corrected help (or will it harm) my FICO score?

Message Edited by Josh_A on 09-18-2008 07:00 PM