Hi,
This is my first post, I have been lurking and learning here for a while. Many thanks to Tuscani and all the posters that have helped me get my credit rating greatly improved. I went from a FICO score of around 550 to a little over 700 over the past few years. It takes time, but it feels good to claw my way back into the good graces of the banks and credit agencies.
I only have one BADDIE left on my CR, so I am using a modified version of your PFD Example letter to try to get this one done. The statute of limitations just expired for this credit card that now has a balance of $11,000. Of course the original credit line was only $5,000, but they were pretty good about finding fees and interest to puff it up.
I actually think I paid this, but I cannot find a record of my payment since it was about 6 years ago and I only keep about 3 years of old bills around. 6 years ago I settled all of my credit card debt through a third party negotiator for about 40% of the balances. I had $50,000 in credit card debt after a failed business venture. We settled all of them one by one, and my credit was pretty well nuked for years after that.
The collection agency for this one remaining BADDIE has been calling me for about a year now. I even sent them a copy of my credit report that showed a zero balance for the account, but they wanted a letter on the letterhead of the original creditor showing it was paid. I don't have it, I'm not sure I ever did. I did not know I would need it.
This thing will fall off my credit report late next year, but I have an extra $30,000 in cash right now since I have been living a simplified life for a while now. I am thinking of buying a house sometime this year or next. I am going to offer them 10% just to add (hopefully) a few dozen points to my score. I am trying to get over 720, that seems like a pretty good cutoff point for lenders, especially with all this subprime mortgage mess going on now.
Here is a modified version of your sample letter that I will be sending. If you have time, please let me know what you think of it. I will be sending it via certified mail with return receipt this week.
-- Start WorkingTheSystem Letter
August 17, 2007
Collection Agency
1212 Maple St
City, State Zip
Re: Collection Account for Original Creditor Account #: 00000xxxx
Amount: $11923.65
To Whom It May Concern:
This letter is to inform you that the validity of this debt is disputed. I am sure I have already paid this, but I cannot find the record of payment. After I found that my credit report showed a zero balance for this account, I disposed of my old records. Furthermore, I have found out that the statute of limitations has expired for this debt, and it will not even appear on my credit report at all sometime next year.
In the spirit of compromise, I am willing to pay this account for 10% of the amount shown in your August 1st letter to me if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.
If you agree to the terms and accept this agreement, certified funds for the settlement amount of one thousand one hundred ninety two dollars and thirty seven cents ($1,192.37) will be sent to Collection Agency in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.
Collection Agency agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Collection Agency will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.
If you agree to the above terms, please prepare a letter on your company letterhead explicitly agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Collection Agency. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.
Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will simply wait for this item to be removed from my credit report sometime next year through the normal credit aging process.
Please address all correspondence regarding this account to:
Working T System
13264 System Avenue
Systemville, SY 12345
Thank you,
WorkingTheSystem
-- End WorkingTheSystem Letter
I think it will work. If not, I will just wait for it to drop off of my report. Thanks for all of the good advice. I just want to be a good risk and benefit from a good banking system.
Cheers!
WorkingTheSystem
Message Edited by WorkingTheSystem on 08-12-2007 05:27 PM