Collections (Portfolio Recovery, Credit Collection Services, Qualia, NES)

[kt0212]

Good morning

This is my first post so I hope I do this right! After years of struggling financially/being bad with money, not understanding credit, and going through a divorce - I'm finally getting back on my feet! I'm looking to this community to know your experience with these particular Collection agencies and any input/advice/tips I could do to make this easier. I'm willing to pay them all and will have the money to do so in the coming months, I just want to make sure I do it the right way.

I'm in the market to buy my first house and unfortunately, I make the money and have the bad credit and my new partner has the excellent credit and doesn't make the money. SO, here I am doing my best to repair my credit to hopefully get us approved!

The mortgage lender I'm working with told me that they just really want to see these collection accounts paid off (or at least in resolution with a payment plan so it reflects better).

My gameplan:

1. I've paid off $232 to NES for a Discover Bank Card.
   • They wouldn't do a PFD.
     • This was also my first attempt at doing a PFD and they told me that Discover would handle that.
     • Although, I'm pretty sure I butchered it because I did it on the phone and I didn't want to wait for snail mail
       • Someone else might have better luck.
     • I was able to get them to send me letters via email that stated my account was PIF and that they would report it to the 3CB.
   • I'm sending a slew of GW letters to Discover hoping that someone bites to have the collections account removed. :fingers crossed:
2. Paid off $151 to Portfolio Recovery Associates for Capital One CC.
   • I'm seeing that users here have had their accounts removed on the 3CB by them and according to their FAQ section I'm hoping this holds true for me too:
     • "Our policy is that within approximately 30 days of your final payment successfully posting, we will request the credit reporting agencies delete the Portfolio Recovery Associates, LLC tradeline related to your account from your credit bureau report. We do not control the timing within which the credit reporting agencies process our requests. For further assistance pertaining to your credit report, please contact the credit reporting agencies."
3. I have another account with PRA that I will pay off sometime next month for $867 for Capital One CC.
4. Paying off a $96 collection with CCS for Safeco (Liberty Mutual Insurance).
   • Called today and they were adamant that they no longer do PFD.
     • From what I've read here lately on this forum this seems to be the case, unfortunately.
   • Requested DV because they alerted me to another debt (that I have abslutely no memory of) that isn't reporting to the 3CB when I called them so I just want to make sure these things are actually accurate before I pay anything to this company.
   • They also told me the dates for the debt I was initially calling about and they did not seem valid so hoping the information is inaccurate so I can just make this one go away with a dispute. 
   • If everything is accurate, what should I do next?
     • Request a PFD via snail mail that states something along the lines of "You are legally allowed to do this, blah, blah, blah"
     • Pay it and just submit a GW letter to Safeco (Liberty Mutual) and hope for the best?
5. Qualia for $2,822 - the biggest PITA I've ever dealt with
   • They sent me a letter offering to settle for $563
     • I sent a certified mail letter back in June of 2022 saying that I would pay it in exchange for them doing a PFD - they received the letter - crickets.
     • I sent another CML in December of 2022 stating the same thing - they received it - crickets.
     • I called them on the date I asked them to respond by and they couldn't locate any of my information.
     • The first mortgage lender I was working with said that on their end they saw something about the account being in resolution. 
       • Definitely still lost on this one because I've received no communication + they couldn't locate my account
         • Any idea what the mortgage lender might have been talking about?
         • I'm afraid I've given them fuel to try and sue me for the full amount but it just doesn't make any sense all around.

With all of that info what are your thoughts on my gameplan? Any tips/tricks/advice/more info I can provide?

So grateful for this Forum - it's helped me in so many ways!

[bass_playr]

Hiya 

First thing's first...you want ALL collection accounts paid. Even if they still show on your credit, the underwriters will be much happier that you've paid off all those accounts.  So, PFD is obviously preferrable, but even if the collection shows as paid, that's still better than open collections.

I'm no mortgage lending expert, but I do know that open collections are a no-no.  

Second, PRA does delete, so you shouldn't worry about that account.  

Third, CCS, for $96, I wouldn't worry one moment over that.  Having a paid collection that small is not going to prevent you from getting a mortgage.  

Fourth, when it comes to Qualia, I would call them back, tell them you have received a letter from them and tell them you're inquiring about this account.  If they still tell you that they cannot locate any info on you, ask them why they are reporting on your credit if they cannot find you in their system.  Then, I would go to annualcreditreport.com if you need an updated credit report, and dispute that entry on each report they have it on.  If they cannot find you in their system, and they verify the debt to the credit bureaus, you can then take additional steps to try to remove this.  By law, they are supposed to be able to verify you from their system to the bureaus in response to a dispute.  If they cannot, then there's no valid reason for this to remain on your credit.  If they can, then there's no valid reason for them to tell you they cannot. 

OR, if you can get someone on the phone that can find you in their system you can just pay the $563.  Again, even if the paid collection stays on your credit, you can explain to an underwriter that you didn't make good choices but you paid what you owe to handle your responsibilities in the end, and they will probably be OK with that.  As long as you're not going to the underwriters with unpaid collections sitting on your credit, I don't think it will cause them to deny you.  It also depends on your other credit report entries, your scores, your income, time at your job, etc etc.