P.O. Box 6189
Sioux Falls, SD57117
June 5, 2008
Regarding: Account # XXXX
To Whom It May Concern:
I am writing a letter regarding my experience with Sears that is a mixture of an appreciative “thank-you” and an urgent request concerning a Sears Credit Card tradeline in my credit files that I would like to have reworked. Currently I am writing to see if you would be willing to make a “goodwill” adjustment to your reporting to the three credit reporting agencies.
According to my credit report, I have 2 30 day lates from May 2003 and March 2006. These late payments were due to my financial hardships and I do apologize. I don’t say this to justify why the payments were late, but rather to show that this is not a good indicator of my credit worthiness.
I received the Sears Card in 2002 and during that time I enjoyed the experience; this was one of the first credit cards I have ever had. It is my sincere hope that Sears is willing to work with me on erasing both of these marks off my credit reports. All I can do is hope you will adjust the late payments which will help my credit score. Your customer service representative suggested that I write you for a “goodwill adjustment.”
Although I no longer maintain a Sears Card, I sincerely hope that there is redemption at Sears, and I beg for such consideration. Please let me know if you need any addition paperwork that will help in you decision of this matter. I thank you for your time and look forward to hearing from you on this matter.
Molly's got it right, as far as I can see!
The only thing is that with unpaid medical collections, you want to use the HIPPA process. If either of your's collections are medical related, just holler and I'll fetch the letters you need to use.
Or conversely you can search for the HIPAA letter. Its a LOT of reading and you won't understand most of it (its really convoluted, but then, isn't everything dealing with credit??) but if you follow his directions to a "T," you'll have more success than if you didn't.
As for PFDing debts that are out of SoL the bennie to the CA is that they have more of a guarantee of getting their $$ if they agree. Since, of course, once the debt has run the SoL, they no longer have the legal remedies afforded them by the court system (i.e., they can't sue you for it, legally). So, in a nutshell, you have more leverage in convincing them that allowing you to PFD is the way to go.
Some CAs can be snotty, though (I've known a few) and will be insulted if you offer a PFD and will refuse it and take the hit. I dunno why. But chances are, if the debt's out of SoL, it'll more than likely be due to fall off your CRs soon. So it's a bit moot unless you're apping for new credit and want the best rates.
If you offer a PFD BEFORE the SoL has expired, as Molly said, they might come after you even harder. Around here, we like to call it "waking a sleeping giant." Since you're offering to PFD, they take it that the debt's valid AND that you have at least SOME of the money to pay it off. So offer a PFD on newer debts at your own risk.
On a final note, remember that a CA can ALWAYS sue you for a debt, regardless of SoL (in fact, many Junk Debt Buyers -- JDB's_ WILL attempt this). I would think their rationale is that you either A) Won't know your rights and won't show up to present a defense or B) Will quail and offer a settlement prior to the court date.
If you ARE sued, and your debt IS out of SoL you MUST appear. Once you appear, you can present the SoL defense (and you WILL win). If you don't show up, regardless of SoL, you WILL lose by default. Afterward, you can always file a motion to vacate on the basis of of the debt being SoL, but you'll have to pay approximately $200 in filing fees for the "pleasure."
Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!