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Frustrated and could really use some guidance!

Frustrated and could really use some guidance!

Aargh, i don't even know where to begin. Been working hard on my credit for about three years now. It's paying off and i owe much of my credit success to this forum. Thank you everyone. In 2015 i didn't even have a credit score, it simply said not available. I basically nuked it. With a combination of time and responsibility i've brought it at its highest point of 755, 741, 733 just a few months ago.

 

For a while i was using Credit Karma to keep track of things. Back in January, Credit Karma was only showing one collections item. A Cable bill for $390 that had been in collections since early 2013. I ordered the my fico ultimate 3b and started keeps tabs on my credit mainly through MyFico. My scores were all actually much higher on Myfico, to my suprise. One thing i noticed is that the collections item was not on there. It simpy showed zero items in collections across the 3 bureaus.

 

About a month or two later, i noticed that it had dissapeared off of credit karma as well.. I was confused because it hadn't been seven years yet. I have not made contact nor been contacted by the collection agency. whatever. My credit score is kicking butt.

 

So just a few weeks ago i get a notice that says a new collections has been added to my account. It is the same collections item but through a different agency. Obviuosly it looks like the collections was bought and sold. The problem is the starting date is March 02, 2018!!

 

That collections item is liteally 5 years old! I undestand the fact that it was purchased by a different collections agency, but IS IT EVEN LEGAL TO COMPLETELY START MY TIMELINE OVER?!? Whats to stop them from doing the same thing in another 5 years?

 

Over the next two weeks the collections hit each of the 3 bureaus, DROPPING MY SCORE BETWEEN 80-100 POINTS. **bleep**. I went from credit hero to zero basically overnight. Whats frustrating is i was in a good spot to start looking for an auto loan. I have accounts with Amex, Discover, Citi, Chase, Cap1, Cred1, all with 100% payment history. Fairly minimal inquiries, and only one stupid collections, but that collection just destroyed my chances of getting a loan.

 

I kindly ask for you folks help on which direction to go. Since the account was previously 5 years old, i was just going to ride it out for another two years. It's only a $390 collections, but i was under the impression that if i paid it, then it would start the timeline completely over.

 

But now the collections has been resold apparently and they started the timeline over. Can they even do that? Is there some step i should take to correct it? I've been nervous about calling them because im told that if i contact them, then they can legally start the timeline over. If you think it's in my best interest i would more then happily call them up and pay the $390. No big deal. I just want to go with whatever the best scenario for my immediate credit is.

 

What pisses me off is when the account was 5 years old, it had a very minimal impact on my credit. Now that they started the timeline over i saw a 100 point drop. I just don't see how thats even fair. Please lead me to the promise land gentleman. Thank you for your time.

Message 1 of 16
15 REPLIES
Frequent Contributor

Re: Frustrated and could really use some guidance!

At the minimum, the information (specifically the date) is inaccurate. While IANAL, this may be grounds to dispute the item with the CRAs. I wouldn't acknowledge anything that might even sound like you know what the debt is, just say that the date is 2018 and you are 150% positive that you don't have any debt that became delinquent starting on that date. Maybe someone with more legal experience could chime in here with more advice on the best way to word these communications to avoid restarting the clock or giving away too much. 

Message 2 of 16
Community Leader
Legendary Contributor

Re: Frustrated and could really use some guidance!

Reporting of a collection by a new debt collector does NOT restart the exclusion period.

Credit report exclusion of a collection is based on one date-certain, and no other date.  That date is the date that you intiallly became delinquent on the debt with the original creditor, and therafter remained delinquent until the debt collector obtained their collection authority.  More specifically, the exclusion of any reported collection, regardless of when reported or updated, must occur no later than 7 years plus 180 days from the DOFD, and the debt collector is required to separately and explicitly report the DOFD to the CRA (the CRAs rountinely exclude at approx 7 years, and dont wait the full 7 plus 180).

 

A collection that was first reported in early 2013 would likely have a DOFD of somewhere in late 2012, which would result in exclusion of any collection reported on the debt, regardless of when the collection was first reported to the CRA, sometime in late 2019.

 

The big drop in scoring with the re-inclusion of the collection by another is due to the fact that the delinquency period since its initial date of delinquency has increased since it was previously reported.   The effective period of delinquency for scoring of a collection is the time since DOFD and the most recent date of reporting/updated reporting.  Each time a debt collector reports or updates, it informs FICO that the debt remains delinquent/unpaid, thus increasing the period of reported delinquency.

Message 3 of 16
Frequent Contributor

Re: Frustrated and could really use some guidance!

1. You may want to dispute the debt with the new collection agency to make sure they legally own the debt. Request debt validation and proof the debt is actually yours. 

2. I would also dispute the debt with the bureaus. 

 

Good news is that this new collection does NOT restart the 7-year clock. Worst case scenario is that it falls off in a couple of years. 

Message 4 of 16
Established Member

Re: Frustrated and could really use some guidance!

I totally agree with Asguardian!

Message 5 of 16

Re: Frustrated and could really use some guidance!

Thank you for your help everyone. I shall try disputeing. I have never disputed anything before though. What is the best way to go about doing this?

Message 6 of 16
Community Leader
Legendary Contributor

Re: Frustrated and could really use some guidance!

In order to dispute, you must identify a specific, actual inaccuracy in information that has been reported to the CRA.

What is the asserted inaccuracy in reporting that would be the basis for your dispute?

 

Additionally, a dispute is limited only to the verification, correction, or possible deletion, of the specific information that is subject of the dispute.  Finding some inaccuracy in reporting will only lead to the correction or deletion of that information, and will not compel deletion of the entire collection unless the basis for the dispute is that the debt is not legitimate.

 

Message 7 of 16
Established Contributor

Re: Frustrated and could really use some guidance!

What's the name of the collection agency? it would be interesting to know if it's a CA that has a history of policy of doing PFDs should the DV come back verified.

Starting Scores FICO 8 (Feb '18):
EX- 519, TU- 530, EQ- 545
Goal Score: 700 across the board



Message 8 of 16

Re: Frustrated and could really use some guidance!

 


@19eighty5 wrote:

What's the name of the collection agency? it would be interesting to know if it's a CA that has a history of policy of doing PFDs should the DV come back verified.


"Waypoint Resource Group"

Message 9 of 16

Re: Frustrated and could really use some guidance!


@RobertEG wrote:

In order to dispute, you must identify a specific, actual inaccuracy in information that has been reported to the CRA.

What is the asserted inaccuracy in reporting that would be the basis for your dispute?

 

Additionally, a dispute is limited only to the verification, correction, or possible deletion, of the specific information that is subject of the dispute.  Finding some inaccuracy in reporting will only lead to the correction or deletion of that information, and will not compel deletion of the entire collection unless the basis for the dispute is that the debt is not legitimate.

 


The inaccurracy is that the collections is over 5 years old and they're reporting as if it's only 2 months old.

Message 10 of 16