Collections and PFD

[SassyGirl5401]

Hello everyone,

My mother is looking into buying a house and will be 2 years post bankruptcy on June 21 of this year. When she pulled her credit report this weekend she noticed there was a collection account reporting. She had co-signed on a ulitiy bill for my sister a few year ago and my sister let the account go to collections this past Nov. When I asked my sister about it she said the bill was paid (by my mom) in November and the account was closed. I had my mom look back at her statements and she did indeed pay the $175 that was owed. The account in collections is reporting that $275 is currently due. We would like to get this taken off her credit report but are not sure of the best way to to about it.

Does my mother send a pay for delete letter and mention that on x date $175 was paid on the account and that she is willing to pay the remainder for a deletion? Does she send a pay for delete and not mention the amount she has already paid? What do you all think the best way to appraoch this is?

Thank you for your help!

[Anonymous]

I would strongly suggest sending a DV letter before jumping to a PFD. Just send a simple letter stating that the account was closed and paid in full on the given date and therefore you do not believe that the debt is correct. Make sure that you send it CMRRR. I have had success with a similar issue and the item was removed from my reports less than a week after I sent the letter.

Good luck!

[SassyGirl5401]

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@Anonymous wrote:

I would strongly suggest sending a DV letter before jumping to a PFD. Just send a simple letter stating that the account was closed and paid in full on the given date and therefore you do not believe that the debt is correct. Make sure that you send it CMRRR. I have had success with a similar issue and the item was removed from my reports less than a week after I sent the letter.

Good luck!

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Thank you. I'll suggest my mom go the DV route rather than PFD.

[RobertEG]

+1, with an additional suggestion.

DV goes to verification of the debt, not credit reporting.

There is nothing to preclude her from additionally filing a direct dispute with the debt collector, asserting inaccuracy of their reporting of collection on a paid, and thus non-existing, debt.  The direct dispute will require an investigation and response within 30-days.  A DV wont.

I would do both.

I definately would not pay them for a non-existent debt.

[SassyGirl5401]

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@RobertEG wrote:

+1, with an additional suggestion.

DV goes to verification of the debt, not credit reporting.

There is nothing to preclude her from additionally filing a direct dispute with the debt collector, asserting inaccuracy of their reporting of collection on a paid, and thus non-existing, debt.  The direct dispute will require an investigation and response within 30-days.  A DV wont.

I would do both.

I definately would not pay them for a non-existent debt.

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So should she file a dispute on her credit report as well stating that the collection has already been paid and that what the report is showing is not correct?