Help understanding my options, and how best to handle my situation.

[Anonymous]

Hello Everyone,

First I want to thank everyone on this forum who take the time to help individuals like myself with clearing out the situations that we are in. Obviously, you can't get this type of help from the people who want their money. Resources like these are invaluable and a true blessings to people like me. Thank you, greatly.

Im in the process of trying to repair legitimate debt. I owe the money - and I am willing to pay, but I don't want to waste my time or my money only to be hosed by the people I owe. I have 2 accounts that are in collections and have been written as charged off on my credit report, but the balance is still listed. I believe both companies to be using collection agencies that are internal to the company. Both accounts have been delinquent for greater than a year. Because I don't know what I should and shouldn't post, I am assuming less is better until otherwise advised so. I read some of the guidelines on steps I should take, but there is a lot of acronyms used that lose me. I want to do whatever will best help correct my credit.

If this isn't enough info for adequate help, let me know what I need to be more specific about and I will do what I can to provide the details.

Thank you,

[Anonymous]

To add a bit to the situation,

both accounts are still well within the SOL and are currenlty only listed in my credit report by the OC. One account is through Home Depot, being handled by LTD Financial and the other is a Chase account, which I am not sure who is handling as of yet. $1500 and $1300 respectively. 

Thanks,

[Anonymous]

I did a bit of additional reading last night. Seems though my accounts aren't neccessarily in collections, but rather they are using a debt collector to try to get the money. Right now, they are just in charged-off status. Im wondering though if I am in a position to be able to PFD with the OC. When I call in on the Home Depot/Citi Bank, their automated service redirects my call to LTD Financial services after they get my account number. Am I correct in assuming that the OC still owns the account and that they are just using a CA to try and collect the funds? When I called the CA - they told me that they couldn't do anything about the reporting of the owed debt to CRAs, that they forward any and all payments directly to the CO and the CO writes the satisfaction letter and reports to the CRA.

I think I should be able to talk to the OC about a PFD agreement, but they always tell me there are no managers available and forward me over to LTD.

If anyone could add anything or help me through the steps I should take, I would greatly appreciate it.

[Anonymous]

(If I am remembering my stats from when I worked as a CSR) tecchnically, the OC can't talk to you about payment because they have already sold the account the CA to handle  your account.  The OC no longer owns the account.

I would do a PDF settlement with the CA (remember, the CA probably didn't pay the balance + additl. payment to take the account, they paid pennies per dollar), get it in writting on their letter head either mailed, faxed or emailed to you then start submitting payment(s).

Once that's taken care of I would GW the OC stating the account has been written off and paid through the CA and request that the TL be removed from the CRAs.

[Anonymous]

Thanks for replying.

So you think my accounts have been sold? Why would the CA that is handling my OC HomeDepot/Citibank tell me that they had no control over the reporting, that they send the payments to the OC once recieved, are they just blowing smoke? How can I find out from the OC if my accounts have been sold? I'm wondering though, what is the likelyhood that I could get the TL to report as Paid as agreed and have the deliquencies removed by the OC. I don't have much history yet, and having those accounts back in good standing would help tremendously.

[Anonymous]

First steps first, I'd sent a CV letter to the CA and a 623 letter to the OC, then dispute with the CRAs when you get the signed cards back (paper trail, sending all letters with a CMRR)

If both comes back validated and verified then I'd start to persue a PFD.  If the account has been sold by the OC to this CA then the OC can no longer discuss payments with you.  NOW, some OCs will ignore this part of the contract with the CA and take payment but that's a YMMV.

If you do send a 623 letter to the OC I would ask for a copy of the contract of the account being sold to CA (I don't know if they have to provide it, but it wouldn't hurt to ask).

Someone can correct me, but I don't think having the account marked paid will increase you score because the derogitory will still be there on the negative portion of your CR.  Age will help it become less damamging.

Obtaining a credit card and starting to demonstrate responsiblility with the new card can help your score.

[Anonymous]

Okay, so just to make sure I am following you -

Send a DV letter to the CA and a 623 Letter to the OC. Once I receive the signed cards from the CMRRRs, dispute the debts with the CRAs. Does being within my SOL change this? Since they could still ITS, am I waking a sleeping bear? I don't want to wait 7 years to start correcting my mistakes.

How can I get an example of a 623 letter, and when disputing with the CRAs do I dispute via there website or send an actual letter to the CRAs?

Pursuing the PFD is seeking to remove the TL from my CR entirely, right? If the account marked as PIF will not help my credit, then outside of a PFD I should just settle on the account, right? Lastly, I have recently applied for and was immediately approved for an unsecured card through Orchard Bank with a $300 CL. Waiting on the card to arrive (only been like 1 week). After a month or 2, I will apply for another card - possibly a CapOne. From what I have read, I should have 1 card always reporting with a $0 balance and the other with 9%.

[Anonymous]

I'll PM you sample letters that I used as templates in a few (kiddo is waking up).

I think a paper trail is best, all of my disputes have been via USPS.

Personally, I'd do a PFD.

Otherwise I could have missed a step and if so I'd prefer to be corrected by a senior member.

[Anonymous]

Thanks,

I appreciate your help.

[Anonymous]

To add a little,

My wife has disputed a few of my negative accounts on my credit already just for EX. Can I still file a DV to the CA's and then file a dispute with the CRA's while waiting on the DV response? If they come back with a verified by the CRA's, then isn't the CA violating the FDCPA? Or since they have already been disputed once, have I lost that option?