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Paid Returned Check

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Senior Contributor

Re: Paid Returned Check

Nonali, regardless of what the blog you read says, asking for a GW is NOT unethical. Nor is it a violation of the FCRA. I'll explain.

The FCRA: The essence of the FCRA is to protect the consumer. The FCRA states that if negative information is reported to the CRAs, it MUST be accurate. Meaning, if actually have a perfect payment history, they cannot report that you have missed X payments.

AFAIK, there is not section that prohibits Goodwill adjustments.

Now, many creditors, because of other "Acts" interpret the FCRA AND the "Act" that they have to adhere to, as prohibiting GWs, and that is their INTERPRETATION. Again, there is NO law, act, or statute that prohibits the forgiveness of a late or missed payment.

A GW is ethical whereas DVing a PAID collection is NOT for simply one reason. When you GW a creditor, you're ASKING for leniency. They are under NO compulsion or obligation (other than good customer service) to provide you with goodwill. They can respond favorably, or not at all, or even tell you to go pound sand. They have the "power," so to speak.

However (and I'm extremely concerned that I may be tap-dancing close to the edge in re the rules, here), DVing a paid collection is using a loophole in the law to your advantage. It's really, using force to remove the ugly, not allowing the OC/CA to do it as a means of goodwill.

I'm trying VERY hard to come up with an analogy that would explain it better, and I'm out of luck right now. Haven't had my full ration of caffeine yet.

If no one else chimes in with one, I'll be back AFTER I've had my pop and can think more creatively!


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!!

Message 11 of 12
Frequent Contributor

Re: Paid Returned Check

Why would you DV a paid collection anyway?  I may not be saying this right, but if you paid it, wouldn't it be like admitting from a legal standpoint that it was yours and you were responsible for it?  Unless of course you paid it with a PFD letter. 
Message 12 of 12
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