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Confusing Late Payment/Collections Situation For Co-Signer

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Regular Contributor

Confusing Late Payment/Collections Situation For Co-Signer

Basically, I co-signed a loan for someone. They fell behind, and I wasn't notified. I made a $900 payment in 2017 to catch them up (but I already had 120+ days late reported on my credit). They didn't make a single payment after that. The account went to collections. I wasn't notified. I called the OC a few days ago about getting the lates deleted. They referred me to the CA (which I was confused about because I had no collections from this debt on my CR). So, I call the CA. They tell me they don't have me on the account at all only the person I co-signed for. I call the OC back and let them know that I would rather deal with them since I'm not on the CAs radar. I was hoping going this route would leave me with the possibility of having the 120+ lates removed from my CR. Lady on the phone sounds very sympathetic to my situation and says she's escalating it and I will get a call back. I wait 5 days (2 weekend, 3 business). No call. I call to follow up, and no one can track down these notes or this escalation. They escalate the call with me still on the phone. The woman I spoke to tells me there's nothing they can do about the past, so I should just pay the CA and wait for the lates to fall off. So I ask a follow up question. I ask if I pay the CA will the OC update on my report. It's currently reporting as open at $1,800 even though the actual amount owed is $900; which means the OC hasn't been reporting for a long time. She says if I pay the CA, it will update or I can dispute if it doesn't.

 

So, now I'm concerned that if I pay (and/or dispute it) to show the OC as closed, the CA will magically start reporting on my account. Also, it is currently only reporting to Equifax, but I've read there's a possibility of them reporting it to the other two CBs if they get annoyed by a GW campaign.

 

Should I PIF and then start a GW campaign to the OC? Can I settle and start a GW campaign to the OC? I can't negotiate a PFD to the CA because the CAs not even on my CR, so that wouldn't matter.

 

Edit:

So recap:

120+ day late on my CR from OC

CA not on my CR at all due to me being the co-signer and not the primary

Can settle or PIF to the CA, but as they aren't on my CR any type of PFD won't help me (will only help the primary)

Trying to figure out the best way to get the OC to remove the lates.


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Message 1 of 4
3 REPLIES 3
Legendary Contributor

Re: Confusing Late Payment/Collections Situation For Co-Signer

I would make a combined pay for deletion and pay for not reporting offer to the debt collector.

If they accept, they have agreed to delete any reporting already made, and not to report to any other CRAs.

That will remove any collecions on the debt.

 

Once you pay the debt collector, they are required to notify the creditor of the payment, and the creditor is then required to promptly update their account to show that the debt balance is now $0.  That is required under FCRA 623(a)(2), and there is no need to incorporate the update agreement into your pay for deletion/pay for not reporting offer.

 

Removal of lates reported by the creditor can only be required by an agreement directly with the creditor.

You can, after paying the debt, pursue a GW deletion request with the creditor for removal of any derogs they have reported (or of the entire OC account).  The debt collector cannot make a binding agreement to deletion of reporting made by the creditor.

Message 2 of 4
Regular Contributor

Re: Confusing Late Payment/Collections Situation For Co-Signer

Thank you for the reply. I will send a PFD letter to assist the person I co-signed for, and then hope GWs will work with the OC.

 

Is there a coorelation between PIF and Settlement when it comes to asking for GWs from the OC? The OC won't receive any of the payment anyway since they sold it to the CA, no?


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Current Score: 695|770|762
Goal Score: 720|720|720


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Message 3 of 4
Moderator

Re: Confusing Late Payment/Collections Situation For Co-Signer


@Jatyro91 wrote:

Thank you for the reply. I will send a PFD letter to assist the person I co-signed for, and then hope GWs will work with the OC.

 

Is there a coorelation between PIF and Settlement when it comes to asking for GWs from the OC? The OC won't receive any of the payment anyway since they sold it to the CA, no?


If the OC sold it to the collector then they wont see a money from the settlement, in this case the OC reports a 0 balance. If the OC just contracts them then they will receive some money over and above the collection fee. If the OC sold it you use GW letters to ask for removal of the TL but since they took a big loss they may not be in the mood to grant such. The older the TL is and less time to report before it is excluded the better the chance for a successful GW request.

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