Please Help With Removing Bad Collections!

[Anonymous]

Hi everyone, first off I want to say that the forums are great here and very informative. I'm glad to be a new member. This is my first official post and I hope to learn alot and also contribute as much as I can.

I'm trying to get my credit to a good place where I can finance a new vehicle. I'm 29 years old and anything "bad" on my credit report from my younger years has fell off recently. Here are the details on my credit report so you can help me decide what will help me to get my score up:

Current FICO Score through this site: 555 (Equifax)

Collections: 7

1. Sprint(cell phone)

Date Assigned: November, 2009

Original Balance: $816

Current Balance: $816

Notes: Cell phone bill that I couldn't afford at the time after 5+ years with them.

2. Medical (Local Hospital) - Franklin Collections

Date Assigned: April, 2009

Original Balance: $207

Current Balance: $272

Notes: I assume this was a ER medical bill from the local hospital, had no insurance.

3. Medical (Local Hospital) - Franklin Collections

Date Assigned: March, 2013

Original Balance: $658

Current Balance: $658

Notes: I assume this was a ER medical bill from the local hospital, had no insurance.

4. Medical (Local Hospital) - Franklin Collections

Date Assigned: November, 2011

Original Balance: $441

Current Balance: $441

Notes: This was a MRI from the local hospital in which I was approved to have this paid in full through "charities" because I had no income or insurance or job at the time. If you notice below this collection, the same collection company put two seperate baddies on my credit report on the same date, but two different amounts. The MRI was covered for $7800 and I recall getting a seperate bill from the doctor the hospital used(same branch) that actually "diagnosed" the findings of the MRI. So I'm thinking this was that bill from that doctor. Is it possible that they were suppose to cover this anyway and it shouldn't be reported? See the collection below(Same date, different amount, different account number listed)

5. Medical (Local Hospital) - Franklin Collections

Date Assigned: November, 2011

Original Balance: $372

Current Balance: $372

Notes: This is the follow up to the above collection. It's the same date but different amount listed. The above collection and this one have two different "account numbers". This is something I was sure I could fight and have removed or maybe combined. I don't see how it could be possible to list two baddies for the same date? If someone could please shed some light on this for me.

6. Medical (Local Hospital) - Franklin Collections

Date Assigned: February, 2011

Original Balance: $380

Current Balance: $380

Notes: Not real sure about this one, possible another Emergency Room visit with no insurance.

7. Local Cable Company

Date Assigned: June, 2007

Original Balance: $676

Current Balance: $676

Notes: Past Due cable bill from when I moved in 2007, coming up on the 7th year so I expect this one would fall off in June, so I'm guessing I should just wait it out till then?

Collections Summary: So that's about it as far as "Collections" on my credit report. As you can see, they are almost all Medical related items that were due to not having insurance at the time which really sucks, credit would be really solid if not for these, But I'm wondering if you guys can go over them and my notes to see if there is a way I can get some of those off. Five of them are all from the same Collection company. So if you guys can give me your imput on what I should do here to get my score up I would GREATLY appreciate it. If there is something you can suggest that maybe isn't "allowed" to be openly discussed, please feel free to message me details! The other two baddies are cell phone and cable company from 2007 and 2009, pretty sure there isn't anything I can do to get those off now, but if you have any ideas, I would greatly appreciate your imput on that too!

Inquiries: 0 (Have none at this time as I haven't touched my credit in a long time.)

Public Records: 0 (I have never filed for any bankruptcy or anything)

Accounts(4) : I was pre-approved in the mail from FingerHut which is what got me motivated to get my score up. They gave me a $600 credit limit to start. I know some will say their interest is bad and all of that whcih I do know, but I took it as a shot to get some credit going. I was also pre-approved from Express retail store through their website. I haven't got the card in the mail yet so I'm not sure what the limit is on it yet but I imagine it is probably under $500. I read advice on here to keep my total balances under 10% utilization., so at this point I've only charged $180 on each card and plan to pay them down under 10% before the bill is due. OneStopPlus.com also pre-approved me for $250 credit limit. I decided to accept it but have not got it in the mail yet so I haven't charged anything. So the great thing is all of these credit lines came from pre-approvals so I did not get a hard pull for them which I read on here is wonderful. My plan is to use these cards to get my credit flowing and get my score up. All of these were obtained in the last 3 weeks and my first payments will be due in 2 weeks.

1. FingerHut: $600

2. Express: $(Not Sure, still waiting on the card but most likely $250-$500 based on my current score+

3. OneStopPlus.com: $250

4. Jefferson Capital: $412(Please READ below and help me as I think this is another thing I can get removed)

Status as of Oct, 2013
Date opened: Dec, 2011
Date of last activity Feb, 2008
Largest past balance: $412
Account Type: Open Account
Account holder: Individual
Industry: Factoring Companies
Descriptions: Collection account

Current Status: 120+ Days Past Due

In addition to the 7 Collections on my account this is the only other bad thing that is reported. So here's the break down. I had overdrafted at Wachovia Bank and at the time couldn't pay it. So there was nothing I could do, they kept sending me a statement but I never responded. Eventually I remember getting a credit card "offer" from "Jefferson Capital" amd I remember it saying they would put this debt on a credit card and I could make payments on it and after it was paid off they would increase the limit and allow me to use it to "re-build my credit". Now keep in mind I never EVER responded to this offer whatsoever. I DID NOT give them permission to do this. So I guess what they have done is open the account anyway and listed it as a Credit Account. Now its showing I have a Credit Account that has not been paid for the balance of $412!!! It says that the current staus is 120+ past due!? Instead of adding it to a collection like my medical bills, etc. Can they even do this? Can't I fight this since I never gave them consent to open this credit account? I understand I owed the overdraft from the bank but as far as I'm concerned it should be a Collection baddie. Somebody PLEASE advise me on what to do about this as I have no idea, all I know is it sounds wrong. It's red-flagged on myfico so I really want to fight this!

Like I said my ultimate goal is to get this score up from 555 to 640+ so I can buy a new car as fast as possible. I currently do not have one at all so I'm not in a position where I cant wait more than 3 months. Instead of applying now for a higher interest rate, I would rather see what happens when I pay on these new credit cards I explained above and also get you guys to help me get some of the collections reduced. I truly believe I can reach this goal with the help of you fantastic people at myfico! Thank you for taking the time to digest all this information and help, it is beyond appreciated!

- Matt

[Anonymous]

A friend of mine was recently working with a company to help her rebuild her credit and to get some of the old collection notices removed from her account (those that were bought out by other companies over and over that are still showing up).  The company never told her what they were doing in order to get some of these items removed; however, one of the collection agencies responded directly back to her instead of the credit company she was working with and included a copy of the letter that they had been sending out.  You may want to check around online for a similar letter and wordsmith it to fit your needs (there is a lot of legal jargon associated with it).  I don't think this will help you much unless the issues on your report are from an actual collections agency that bought out your old account, though.   Also, you really should send the letter via certified mail so that you have a record of sending it.  I've sent a similar letter to one place myself and am currently waiting for a response.  I believe they have 30 days to respond.  If they do not, you may have to contact the bureaus yourself with the information and dispute the claim till they remove it.  Apparently, in my friend's case, this helped her to have several items removed from her report.  Keep in mind, however, that the majority of your issues are not that old (2011).  Those accounts probably haven't been sold out to other companies a ton of times yet so they may still have all of the original paperwork and will be able to supply you with all of the information you are requesting.  If that's the case, you are just going to have to give it some time and wait it out. You might want to check around to dealerships and see who would be willing to finance you with your current score.  A lot of bigger dealerships can work with scores in that range.

Just a note: I have a score of 634 right now.  It was at 650, but I refinanced my car and by paying off my original loan my credit took a huge hit.  Also, the credit checks to have my car refinanced dinged it a few times as well.  I currently have 3 credit lines open - my mortgage, a car loan, and a signature loan (I opened the signature loan only to have another line of credit, but I left the entire amount in the bank and pay the loan off with that money so nothing comes out of my own budget).  Also, all of my accounts show that they are ALL current regarding payments to be "paid as agreed" (and have been for the past 3-4 years).  I have 3 negatives on my account right now... all from medical collections from 2008 and before.  I refuse to get credit cards to try to increase my score as those seem to get me in trouble (they seem to get you in trouble as well), so I'm just paying my 3 little accounts on time and in full every month and hoping that my score will increase a little here and there over time.  And, unfortunately, it does take time.  Do yourself a huge favor... stop opening so many accounts in hopes of getting your score to raise quickly.  Focus on just a couple of accounts that you know you can handle and can pay each month.  The more negative accounts you have on your report, the more it hurts you.  Just a couple/three small accounts paid on time each month, every month for a year or so will help your score the most in the long run. 

[Anonymous]

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@Anonymous wrote:

A friend of mine was recently working with a company to help her rebuild her credit and to get some of the old collection notices removed from her account (those that were bought out by other companies over and over that are still showing up).  The company never told her what they were doing in order to get some of these items removed; however, one of the collection agencies responded directly back to her instead of the credit company she was working with and included a copy of the letter that they had been sending out.  I don't think this will help you much unless the issues on your report are from an actual collections agency that bought out your old account, though.  Basically, those collection companies rarely get all of the paperwork associated with the account that gives them - from what I understand - legal right to hound you for payment.  Below I've listed what was written in the letter.  You will need to, of course, change the information to reflect the company you are contacting and the account number.  Also, you really should send the letter via certified mail so that you have a record of sending it.  I've sent it to one place myself and am currently waiting for a response.  I believe they have 30 days to respond.  If they do not, you may have to contact the bureaus yourself with the information and dispute the claim till they remove it.  Apparently, in my friend's case, this helped her to have several items removed from her report.  Hope it helps.

Your Address

Collection Company and address 

Re:         Account # **************** 

This is not an acknowledge of debt owed nor a refusal to pay, but a notice that your claim is being disputed.  This is a request for validation made pursuant to the Fair Debt Collection Practices Act.  Only after receipt of complete validation can we discuss any possible settlement of any claim.

Be advised that I am not requesting “verification” that you have my name and/or mailing address, but a “validation”; that is, competent evidence that I have some signed contractual obligation to pay you the said amount.  Please be aware that the courts and FTC have determined that simply providing a printout is not validation and that you must not use any documents already in your possession.  You must provide certified copies of the contract; complete with account of the debt, documents showing that you are entitled to collect the debt and the original address and phone number of said debt.  If you are missing any part, you have not met the legal requirements.

In addition, the courts and FTC have held that reporting to a credit bureau is considered a collection effort and that all collection efforts are to cease completely until the debt is completely validated.  This includes verifying an account with the credit bureaus.  There are severe penalties for non-compliance with this request and then attempting to collect or reporting/verifying the debt to a credit bureau.

Lastly, if you are unable to provide complete validation, you must contact the credit bureau and report the account as in dispute.  Failure to do this is a direct violation of federal law.

Your failure to satisfy this request with the requirements of the Fair Dept Collection Practices Act will be considered as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for damages, costs, and attorney fees.

Thank you for your prompt response.

Sincerely,

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Verifying with the CRAs has nothing at all to do with requesting debt validation from the collection agency.  2 entirely different processes that have nothing to do with one another.

The only thing the FDCPA requires for debt validation is who is currently collecting, the amount and if asked for the name and address of the OC.  The courts are the only ones who can compel a collection agency to provide more than what the FDCPA asks for.

[Anonymous]

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Verifying with the CRAs has nothing at all to do with requesting debt validation from the collection agency.  2 entirely different processes that have nothing to do with one another.

The only thing the FDCPA requires for debt validation is who is currently collecting, the amount and if asked for the name and address of the OC.  The courts are the only ones who can compel a collection agency to provide more than what the FDCPA asks for.

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Honestly, I don't know all the ins/outs/legalities of any of the details of that letter... which is the reason I deleted it and edited my original post (you can feel free to removed the letter portion from your quoted text as well).  I just know that the company my friend hired to try and get some of those listings on her credit reports removed used that letter and it did work for a few of them.  IIRC, it did not work with medical collections, only other accounts she had listed from many years previous. 

[Anonymous]

Actually, it would serve a good purpose of showing what credit repair companies do use and why it isn't a good idea to use them, other than paying them for something you can do yourself.

I would say that letter is more to intimidate a creditor who isn't up on the FDCPA or the FCRA.

But I think it is a good letter in a bad way.

[creditscoreEE]

Seems like your medical bills are from the same place. Have you tryed the HiPPA process?

[creditscoreEE]

I just PM`d you we're you can find this information.

[Anonymous]

Hi, thank you for your imput, I read a few topics on here about the HIPPA process. It was simply mentioned but no details were disclosed. I thought I read that it wasn't allowed to be discussed on here so I didn't want to break the rules by asking. But, that is the process that I had mentioned above that I wanted to try if someone could PM me some insight on it. I thank you very much for sending that to me and ask anyone else with info to send it to me.

You are right, the majority of mine are Hospital/Medical bad collections. They were simply ER visits at the time when I had no insurance. Really came back to bite me, but I'm optimistic that I can get some if not most of them off before I try to get my car loan. I think it would help with the interest rate.

Does anyone else have any advice for my situation? I would just like to get the ball rolling so I can get my new car loan sooner. I realize it may be a few months, but I'm willing to wait as long as possible if it means a better interest rate.

Thanks!

-Matt

[creditscoreEE]

sure if you visit the link that I send you it will show you step by step what you have to do for the Hippa Process.

[Anonymous]

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@Anonymous wrote:

Hi, thank you for your imput, I read a few topics on here about the HIPPA process. It was simply mentioned but no details were disclosed. I thought I read that it wasn't allowed to be discussed on here so I didn't want to break the rules by asking. But, that is the process that I had mentioned above that I wanted to try if someone could PM me some insight on it. I thank you very much for sending that to me and ask anyone else with info to send it to me.

You are right, the majority of mine are Hospital/Medical bad collections. They were simply ER visits at the time when I had no insurance. Really came back to bite me, but I'm optimistic that I can get some if not most of them off before I try to get my car loan. I think it would help with the interest rate.

Does anyone else have any advice for my situation? I would just like to get the ball rolling so I can get my new car loan sooner. I realize it may be a few months, but I'm willing to wait as long as possible if it means a better interest rate.

Thanks!

-Matt

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General information about HIPAA can be discussed. 

In a nutshell, HIPAA that is referred to here, is something that people used years ago when many were not familiar with what HIPAA does.  It is for paid collections to the OC.

There is absolutely no violation at all for a medical collection, either through the OC or a CA, to be posted on your CR.

Now, if there is something on your CR that would let everyone know what kind of illness or procedure you had, that would be a violation.

I would contact the hospital and find out if they have any sort of financial aid you could apply for.  It is possible to wipe out all or the majority of the debt that way.