Vultures

[Anonymous]

I had an alert the other day about a possibly negative item that hit my credit reports. I looked it up and found a 6 year and 10 month old laboratory bill on there for the grand sum of $24. I called the lab and they were nice enough to look up my records since I have used this lab for years with a big variety of ailments. They showed nothing at all. I called the CA, something I never do and asked them what this was about. I told them what the lab told me and they said the lab doesn't keep good record and the debt was purchased by them and I have to pay them. I told them I would never ever pay a seven year debt that seems to not be real. Ok.. So what right? When this hit my reports my score dropped close to a hundred points... For an almost seven year old non existant bill I know this will drop back off next month, but I am way worried that my score will not return. To where it was. I had been thinking about a new car lately, but until my score recovers I am stuck. I always read that old stuff means nothing after even three or four years my experience here sure tells me that that is a crock. I sure wish they would pass the medical dbt relief act in congress but that would put too many collection agencies out of business I suspect. Oh well

[JoeBJay20]

While that sticks beyond belief, your credit score has no memory. When the item falls off your report, it will be as though it were never there, so your score will recover, assuming there were no other changes to your report.  Negative stuff always matters, it just matters less (in terms of your score) as it ages.

[haulingthescoreup]

Yes, the vultures come out when a debt is about to go SOL, or it's about to fall off (assuming that it was ever there in the first place), or when you apply for a mortgage, and the CRA's shop you to the zombie debt collectors.

Fun stuff, huh?

[lency83]

haulingthescoreup, can you give me some more information about this CRA's shopping you to the zombie debt collectors when you apply for a mortgage thing? I was just pre-approved for a home loan and started receiving phone calls from NCO a few days later.. and I really have no idea what the debt they're saying I owe is about. I sent a debt validation letter and nothing is on my credit report yet...but I'm really concerned. Do they know that I'm trying to get a mortgage? How did they get that info? Thanks! 

[haulingthescoreup]

The CRA's sell lists of consumers with new mortgage apps on our reports to the vultures.

The vultures then go through the lists, attempting to match anything --names, addresses, SSN's, or portions thereof --to accounts that have been turned over to collections.

They're not terribly picky about whether it's really you or not. They know that consumers who are getting ready to close on a mortgage might very well cough up a couple of hundred or a couple of thousand bucks just to make them go away, because mortgage lenderrs will require that any collections be paid, and it takes time to force the vultures to back off of collections that aren't yours.

If this starts happening to you, please write your elected reps in Washington. I doubt they'll do anything, but they shouldn't pretend that they're unaware of this. (sorry, just an editorial comment there )

[MarineVietVet]

To prevent what HTSU has described anyone who is thinking of applying for a mortgage in the near future needs to Opt Out of your credit reports.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[smallfry]

I am not so sure that opting out will prevent this from happening.

[lency83]

Well, I didn't opt out before applying for the  mortgage, didn't know I could. I just did it now though...not sure how helpful it will be. I sent NCO a debt validation letter and I am waiting to hear back... it hasn't been put on my credit yet. I'm not sure what is about, but think it may be student loan related... however, I consolidated all my loans and I'm paying them back in good standing. NCO has to validate before they put anything on my CR, right?

[MarineVietVet]

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@smallfry wrote:

I am not so sure that opting out will prevent this from happening.

---

Here are several hundred older threads talking about how it works. I reached my conclusion after reading many of them.

Opting out

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[haulingthescoreup]

I've also read advice to freeze reports, rather than just opting out. Not sure if it works better than opting-out, but considering the stakes involved in a mortgage, it might be worth the money and hassle.