Paying off Calvary

[Anonymous]

So I have a collection from Calvary for $2500 that is on my credit report for the past year. I currently have 15% utilization going over 5 credit limits score is on AVG around 630. Now the last time I paid off a collection with them they removed it from my report without asking. Do you think, this collection is draggin my score down on a monthly basis?

[simplegirl]

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@Anonymous wrote:

So I have a collection from Calvary for $2500 that is on my credit report for the past year. I currently have 15% utilization going over 5 credit limits score is on AVG around 630. Now the last time I paid off a collection with them they removed it from my report without asking. Do you think, this collection is draggin my score down on a monthly basis?

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If its reporting monthly yes it is depressing your Fico score.

[Anonymous]

I just had a $16xx account removed from them as well. When I spoke with them two weeks ago they stated that it's always their policy to remove the accounts once it has been settled/fully paid. That was great news because I already had a PFD document written up so I just ripped that right up. 

The OC was Capital One and it was due to fall off my report within the next year but I'm looking to get a USDA loan (according to my potential lender, you can't have a collection with a balance unless it's medical?) so I had to bite the bullet and pay it. I called in looking to pay about $500 in a settlement but man they were tough negotiators. I thought they would just take that offer seeing as how it wouldn't be long before it falls off and they would have 0 chance of seeing a dime. However, they fought me until we got to $720. Still, a significant advantage considering that debt was 100 percent used by me. 

It was so worth it though and probably even more so for you considering mine was so old and yours is relatively fresh. My scores updated today and I'm up 29 and 38 points according to CK. (I know the CK scores aren't really appreciated in these forums but it's a great tool to keep you updated about your report and get a general idea of your creditworthiness.)

Once I have a charged off Lowes card update from $23xx to a $0 balance (also due to fall off within a year) then I'm going to update my FICO reports and get my new mortgage scores. 

[Remedios]

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@Anonymous wrote:

So I have a collection from Calvary for $2500 that is on my credit report for the past year. I currently have 15% utilization going over 5 credit limits score is on AVG around 630. Now the last time I paid off a collection with them they removed it from my report without asking. Do you think, this collection is draggin my score down on a monthly basis?

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It's keeping your score depressed if it's reporting 

I did a brief search for past threads on Calvary, and everything indicates they indeed delete after it's paid. 

[Anonymous]

Hey MScook - I’m going through something very similar and was wondering if you could share any advice from your experience with Calvary.

1) Do they delete for settlement AND paid in full?

2) Did they actually delete the line after you checked months later?

3) Did the line for the write off of your original Capital One debt remain even after the Calvary deletion or was everything lumped together?

[Anonymous]

Ineedadvice,

1. I did not pay in full. I settled for a payment of $720 for over a $2000 debt but I would imagine the policy is the same for paying in full. However, I would not recommend that. You should be able to get it discounted but they play hardball so it might not be a drastic discount. 

2. They deleted the collections account not even two weeks after it was paid. I was unsure when exactly they would delete so I had started a dispute to have it removed in case they wanted to take their time. It was deleted for the dispute was even resolved. 

3. The original account (Capital One) was removed when they sent it to Calvary for collections. If I'm not mistaken, I think it goes against FCRA regulations for both accounts to still be listed and have a derogatory status. Don't quote on me that because I have never personally experienced it but I briefly recall a different forum where that was mentioned. 

Hope that helps!

[Anonymous]

Wow that was amazingly helpful. My general understanding then is that after you took care of things with Calvary (at around 35% of the principal - great negotiation skills btw!) then everything disappeared. Your Capital One tradeline had changed into a Calvary tradeline and then that was deleted.

1) Was it essentially like you had a “clean” record then?

2) Did you send and request pay for delete documentation to Calvary? I am working with their law office.

Thank you! Thank you! Thank you!

[Anonymous]

Yes, that was exactly the case. It's as if the account never existed except if you ask Capital One, haha. I did find out prior to me settling that if I ever wanted to go through Capital One again that I would probably have to pay in full in order to be considered as an account holder again. However, I do not want to so that works for me.

Before I called or had done any research on these forums I had created a pay for delete letter that I was going to send certified mail. When I found out their policy, though, I just shredded it. The only documentation I have is a recording of the telephone call and the receipt where they took payment from my bank account. That's all I need if it were to ever "reappear". Which I don't think would happen considering their track record. If you could even consider a collection agency "good", this would be the one, haha. 

[Anonymous]

Super interesting. I am surprised on the Capital One thing because if you paid Calvary in full I doubt they would know... did you find this out by calling Capital One directly?

Thanks again for all of the help. This was AMAZINGLY helpful. Sending good karma your way!

[Anonymous]

From what I understand, the OC would want the original amount they had written off as bad debt. That did not come straight from Capital One, it came from a credit repair company. 

It makes sense in a way because you'd think they want the full value of what was written off. However, as you stated, unless the OC and the CA communicated afterward then it wouldn't be possible for them to know how much you actually paid. 

Also, something I didn't think about until now would be the difference between the debt and what the OC sold it for and how that would be calculated. Hmm. Maybe it's not true.

& you're welcome. Just glad to help someone that's in a similar situation. Good Luck!