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Paying collections

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Regular Contributor

Paying collections

My goal is to be able to get a mortgage in the next 6 months. I just paid off about 8k worth of credit card debt which should help my score a lot. I’ve also had 3 different COs removed with goodwill letters. Now I am trying to tackle my collections so any advice would be greatly appreciated.

Here’s what I have:
Midland 2576 DOFD 3/17
Midland 1449 DOFD 2/17
Midland 1202 DOFD 2/17
LVNV 1110 DOFD 9/17
LVNV 787 DOFD 9/17
M Leonard & Associates (vet bill) 2428 opened 11/17

I have sent PFD to all with no bites. I’ve heard LVNV and Midland do not do PFD. However, it appears Midlands policy is to delete after it’s been paid or settled if it’s been 2 years. Well my 2 years is pretty much up so I’m wondering if I should just settle with them.

If I only have a few of them deleted will it help my credit or does it only make a difference if I successfully get them all removed? And Is 25% an appropriate starting point for negotiation?

Any advice is welcome!
March 2018 - EX: 419 EQ: 456 TU: 423
February 2019 - EX: 537 EQ: 547 TU: 509
March 2019 - EX: 625 EQ: 555 TU: 579
April 2019 - EX: 640 EQ: 637 TU: 642
4 REPLIES 4
Senior Contributor

Re: Paying collections

"Encore Capital Group, – Midland Credit Management, Midland Funding, Asset Management and Atlantic Credit & Finance – announced in January 2017 it has imposed a new credit reporting policy that has already affected more than 1 million of their debt-holders:

If more than two years have passed since the debt became delinquent, a collection account will be removed entirely from a consumer’s credit report once paid in full or settled for less than the total due.
For newer debts not yet appearing on credit reports, the debt will be kept off the credit report if payments begin within three months of the initial collection notice mailing, or as long as payments are made each calendar month until the account is paid in full or settled."

 

As far as LVNV. They are a tough one. Call and explain you'll pay for delete and dont want to wait 5 yrs to purcahse a home due to the collections on your CR. The vet one. Never heard of them. But the UW will want to see no collections. They are just over 2 yrs old or less. Tough one. You wont know until you try. Good Luck!





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 2 of 5
Regular Contributor

Re: Paying collections

Well, I bit the bullet and called Midland. They settled for 50% on all 3 accounts and my DOFD was off by a month, but all 3 will be off my credit in April. At least it’s over with, and I won’t risk getting sued. Now on to LVNV and M Leonard & Associates.
March 2018 - EX: 419 EQ: 456 TU: 423
February 2019 - EX: 537 EQ: 547 TU: 509
March 2019 - EX: 625 EQ: 555 TU: 579
April 2019 - EX: 640 EQ: 637 TU: 642
Message 3 of 5
New Visitor

Re: Paying collections

So if you pay, that 2 year policy means they will delete it off the report like it was never reported and in collections? Or it will show paid and still be on there for 2 years?
Message 4 of 5
Regular Contributor

Re: Paying collections

They will completely delete the tradeline from your credit IF you pay or settle the account in full AND it’s been 2 years from the date of first delinquency.

So for example my DOFD was in April 2017. I settled the accounts for 50% of the balance. They are now reporting as “settled” and will continue to report until April.

If you had a collection with them that was older than 2 years and settled the account it would be removed from your credit within 30 days of the payment posting.
March 2018 - EX: 419 EQ: 456 TU: 423
February 2019 - EX: 537 EQ: 547 TU: 509
March 2019 - EX: 625 EQ: 555 TU: 579
April 2019 - EX: 640 EQ: 637 TU: 642
Message 5 of 5
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