Collection Agency inquiries to my credit?

Anonymous · ‎06-22-2009

I've started getting calls from a debt collector. They are attempting to collect a debt that far exceeds the statute of limitations at an exhorbitant amount. Is there a database to verify this company is valid? I checked the bbb and didn't find anything. Also, they told me they have been inquiring my credit report through transunion. What should I do?

Anonymous · ‎06-22-2009

I'd write them and send a cease and desist type letter citing the SOL just to let them know that they are wasting their time and that you know the drill. They are not obligated to cease collection activity though. Freeze your credit reports if you do not want collectors to pull inquires. They can attempt to collect until eternity or you include the debt in a BK.

Anonymous · ‎06-22-2009

I can not freeze my credit. I'm in the process of searching for a home. Will their inquiries on TU count against me? and my good scores?

Anonymous · ‎06-22-2009

You will most likely lose some points for the inquiries. The same amount of points you'd lose for any other type of inquiry. If you have already had a credit pull for the mortgage then I'd freeze them now. It sounds like you have had the mortgage pull and that the creditor has received a triggered notice of it which has prompted them to try and collect now. Be proactive with them so they don't list it on your credit report. You don't want to have to pay an out of SOL debt because an underwriter sees it on your report.

Anonymous · ‎06-22-2009

I just got off the phone with Transunion. They did an inquiry as a debt collection. What should I do? She said it was in the amount of $821. I didn't have the bank pull the credit for the mortgage yet, because I didn't find a house. Will this adversely affect how the bank sees me? The debt collector never sent any information to me on this bill.....

Anonymous · ‎06-22-2009

I believe the inquiry is construed as collection activity and the collection agency is supposed to send you a dunning letter within 5 days. They probably won't. Be proactive and stop them before it goes any further by sending them a cease and desist letter. The collection inquiry may be a red flag to an underwriter. It probably depends on the lender and the loan program. If you have records that show the SOL of the debt get them ready to have them available to show an underwriter in case the debt is listed on your credit report. In the mean time try to stop the collector from going any further with a proactive letter and by freezing your reports. It will only get worse when a mortgage inquiry shows up for them to see or get a trigger alert for. You can unfreeze your reports for a short amount of time when you are ready for a mortgage pull. I'm not sure why you are shopping for a house when you haven't had a credit pull and been prequalified for a certain amount. Most realtors won't touch you without knowing what your credit is like.

Anonymous · ‎06-22-2009

I have a pre-qual based on my credit of up to 90k. I had a tri-merge pulled 1 year ago and that was given to the bank. I updated the fico scores and gave that to them as well. I just called Sears they have no record of anything. They do not keep records past 7 years and this is well past that. They are selling it back n forth. I'm not sure what to do next actually. They told me that I have to talk to the dispute dept about the claim. I will do that, but am hesitant to verify anything with them. It will further give them ammunition to keep digging. There isn't going to be anything else to find. I have put the security freeze on the accounts and fraud alert. I'm told that neither of these will affect my credit rating. Is this true? Any advice on what to do next or where to find the SOL letter?

Anonymous · ‎06-22-2009

Get a copy of your TU report and use the address listed for the inquiry to send your letter. You can easily use google to find a good letter for this common problem. Send it certified, return receipt requested. If you don't want it to show up on your report then don't ignore it. Show them that you know the score and will fight them. Hopefully they will give up.

hifiko · ‎06-22-2009

I believe the correct course of action regarding the collecting of this "zombie" debt would to be to immediately dispute it. This action would immediately make the item in question "unreportable" until the dispute is resolved. Hurry, dispute online immediately.

Anonymous · ‎06-22-2009

@hifiko wrote:
I believe the correct course of action regarding the collecting of this "zombie" debt would to be to immediately dispute it. This action would immediately make the item in question "unreportable" until the dispute is resolved. Hurry, dispute online immediately.

They can't dispute it with the CRA until it is listed on a CRA. The only thing listed so far is an inquiry. Disputing an inquiry, which isn't possible with TU, will not make the debt unreportable.