Collections Accounts

[Anonymous]

Hello all,

I am trying to figure out the best course of action to take regarding my credit. I have various different reasons for wanting to get my credit back into shape, the least of which includes housing and job oppurtunities. The problem I am encountering is that everything I have done to try to rectify the collections accouts with one paricular CA--and one particular credit card company--has failed.

I sent PFD letters regarding all accounts with SCA Collections (medical debt collections) and one for a credit card account with Merrick Bank with no response.

Merrick Bank has seen fit in recent months to start newly reporting the balance each month as if it was still open (it was closed/charged off in 2016, and hadnt reported since until now), which effectlively reaged the debt and lowered my score 30-40 points. I have submitted disputes regarding the inaccurate information with no success.

Any insight or advice you guys could give me would be greatly appreciated.

Thanks!

[simplegirl]

Debts cannot be re-aged and they can update on the account as long as there is still a balance owed on the account. So unfortunately they can update until you pay it off or until it falls off in 2023.

[Remedios]

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@Anonymous wrote:

Hello all,

I am trying to figure out the best course of action to take regarding my credit. I have various different reasons for wanting to get my credit back into shape, the least of which includes housing and job oppurtunities. The problem I am encountering is that everything I have done to try to rectify the collections accouts with one paricular CA--and one particular credit card company--has failed.

I sent PFD letters regarding all accounts with SCA Collections (medical debt collections) and one for a credit card account with Merrick Bank with no response.

Merrick Bank has seen fit in recent months to start newly reporting the balance each month as if it was still open (it was closed/charged off in 2016, and hadnt reported since until now), which effectlively reaged the debt and lowered my score 30-40 points. I have submitted disputes regarding the inaccurate information with no success.

Any insight or advice you guys could give me would be greatly appreciated.

Thanks!

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Hi and welcome 

Merrick did not " re-age" anything. Lenders can (and some do) report entire time debt remains unpaid. I am more surprised they haven't reported before. The date you're seeing is not the re aged DOFD, so really there is nothing to dispute there 

If you're looking to apply for mortgage, you will need to take care of this account, either by paying full amount or attempting a settlement. Depending on your cash flow and in the light of mortgage application, payment in full is preferable whenever the possibility of manual review is present.  Settlement, while not ideal, will at least stop future updates. 

As far as medical collections go, here is a link to a different thread, go down to 3rd post by gdale. Perhaps one of their suggestions will work for you, too 

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Paying-off-Collections-3-x-small-or-1-x-giant-better-for-score/m-p/5576799

Good luck to you!

[Anonymous]

Its not that I dont have the money to settle all of these accounts. I just dont want to lose any leverage in trying to get a PFD. Correct me if I'm wrong, but my understanding is that collection accounts hurt your score just as much whether they are settled/paid or remain unpaid. If this is true, is there really any score benefit in paying a collection without a PFD agreement if it remains on the report regardless?

[Remedios]

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@Anonymous wrote:

Its not that I dont have the money to settle all of these accounts. I just dont want to lose any leverage in trying to get a PFD. Correct me if I'm wrong, but my understanding is that collection accounts hurt your score just as much whether they are settled/paid or remain unpaid. If this is true, is there really any score benefit in paying a collection without a PFD agreement if it remains on the report regardless?

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You're wrong lol 

Unpaid collection accounts hurt. You've just experienced it.  Paid collection accounts stop updating, allowing your score to start recovering. 

As far as having leverage, that only works if CA practices PFD. If they dont, settling or paying are your only options. 

Medical debt might be easier to remove via PFD, but that is also up to CAs policy.