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A collections agent just called me, what should I do

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Medic981
Valued Contributor

Re: A collections agent just called me, what should I do


@Anonymous wrote:

@Anonymous wrote:

If it is a legitimate debt then DO NOT dispute it with the CRAs as this can adversely affect your scores.  Dispute things on your CR that are incorrect but not items that are correct.  PFD often takes multiple calls/letters before you reach someone at the company willing to do it.  It usually does not happen with just one call and conversation.  It can take months, and even then sometimes, it won't happen at all.  Certain companies are notoriously hard to get to agree to PFD (looking at you CapitalOne).  Continue writing letters, emails, etc until someone hopefully agrees to do PFD.  Nothing usually happens quickly when rebuilding credit.


i've never heard of it affecting your score to dispute something, it's your right to dispute. even if the debt was once his, it's been sold off and might have been forgiven. if this new collection company can't prove the debt is legit it will get wiped off in the dispute process.


It is kind of like our legal system, you have a right to a trial and face your accusers even if you're guilty. If a guilty person accepts responsibility for their wrongdoing, sometimes the court is lenient. 

 

If the debt is yours and you accept the fact then FICO is more lenient. If the debt is yours and you use your right to dispute it and it is, in fact, correct, FICO will penalize you. The same way the court may punish you to the fullest extent the law allows if you are found guilty of a crime you are obviously guilty of.

 

As I understand it, FICO penalizes scores for disputing correctly reporting derogatory information to discourage frivolous disputes.







Your FICO credit scores are not just numbers, it’s a skill.
Message 11 of 13
Anonymous
Not applicable

Re: A collections agent just called me, what should I do


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

If it is a legitimate debt then DO NOT dispute it with the CRAs as this can adversely affect your scores.  Dispute things on your CR that are incorrect but not items that are correct.  PFD often takes multiple calls/letters before you reach someone at the company willing to do it.  It usually does not happen with just one call and conversation.  It can take months, and even then sometimes, it won't happen at all.  Certain companies are notoriously hard to get to agree to PFD (looking at you CapitalOne).  Continue writing letters, emails, etc until someone hopefully agrees to do PFD.  Nothing usually happens quickly when rebuilding credit.


i've never heard of it affecting your score to dispute something, it's your right to dispute. even if the debt was once his, it's been sold off and might have been forgiven. if this new collection company can't prove the debt is legit it will get wiped off in the dispute process.


If the debt comes back verified, then it will be newly reported.  Anything that is newly reported will hurt your score more than something that was reported say 3 years ago but not updated since then.  It would be like updating the deragatory on your CR which definitely could negatively affect your score.


ok, i didn't know about that thanks for telling me. but even if they update it, they still have to remove it entirely when it becomes 7yrs from the original delinquincy, right? otherwise they're breaking the consumer credit law. i once had someone doing that to me, they kept reporting my debt as if it was brand new to prevent it falling off every 7yrs.

Message 12 of 13
Medic981
Valued Contributor

Re: A collections agent just called me, what should I do


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

If it is a legitimate debt then DO NOT dispute it with the CRAs as this can adversely affect your scores.  Dispute things on your CR that are incorrect but not items that are correct.  PFD often takes multiple calls/letters before you reach someone at the company willing to do it.  It usually does not happen with just one call and conversation.  It can take months, and even then sometimes, it won't happen at all.  Certain companies are notoriously hard to get to agree to PFD (looking at you CapitalOne).  Continue writing letters, emails, etc until someone hopefully agrees to do PFD.  Nothing usually happens quickly when rebuilding credit.


i've never heard of it affecting your score to dispute something, it's your right to dispute. even if the debt was once his, it's been sold off and might have been forgiven. if this new collection company can't prove the debt is legit it will get wiped off in the dispute process.


If the debt comes back verified, then it will be newly reported.  Anything that is newly reported will hurt your score more than something that was reported say 3 years ago but not updated since then.  It would be like updating the deragatory on your CR which definitely could negatively affect your score.


ok, i didn't know about that thanks for telling me. but even if they update it, they still have to remove it entirely when it becomes 7yrs from the original delinquincy, right? otherwise they're breaking the consumer credit law. i once had someone doing that to me, they kept reporting my debt as if it was brand new to prevent it falling off every 7yrs.


The FCRA requires derogatories to be removed 7 years + 180 days from the DOFD.







Your FICO credit scores are not just numbers, it’s a skill.
Message 13 of 13
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