newyorkchick Posted September 24, 2004 Report Share Posted September 24, 2004 I'm in the middle of getting a mortgage and the mortgage company has unearthed a past due collection account on my credit report that it's requiring me to pay before we go to closing. It's through a company called HHLD - which i'm assuming is Household Bank. I don't know anything about them, other than that they are not the original creditor. It looks like they are a bank of some sort. Anyhow, the account is old - my records say 98. The mortgage co. says HHLD last reported on the account in '00, and doesn't care that the statue of limitations on the 98 date are closely approaching. We must pay the balance. It's under 1g and i can probably pay it in full, but I'm thinking of trying to settle. Time is really of the essence, though, and I need to give the mortgage co. a "receipt" that I paid it. They don't care if I settle either, as long as I give them a receipt. Any advice on a quick way to get this account dealt with without ruining my credit so I can move on to my closing is greatly appreciated. BIG THANKS IN ADVANCE! Link to comment Share on other sites More sharing options...
amortgageman Posted September 24, 2004 Report Share Posted September 24, 2004 Pay it??????That is the only way that you will satisfy the lender. They have seen it already and no matter if you able to get the account deleted, they still want the account paid. The only way to get out of paying the debt would be a letter from Household (on their letterhead) ststing that you do not owe the balance that is reporting. Link to comment Share on other sites More sharing options...
Poorboy Posted September 25, 2004 Report Share Posted September 25, 2004 Well, the bad news is that you will probably have to pay it to satisfy your lender. The good news is that with SOL fast approaching, you should be able to settle for significantly less than the amount they claim you owe. The important thing to remember is if you do talk to the CA, under NO circumstances do you divulge any info to them whatsoever concerning the fact that you are trying to get a mortgage. If you do so, they will hold you over a barrel, and not settle, knowing that you have to pay to get your mortgage. Settle, settle, settle. Call near the end of the month. They will be desperate for money by this point. Offer bottom dollar. ie $200 on a $1000 balance. They will probably hem and haw, but you should be able to settle for no more than 1/2 of the balance they claim you owe. Good luck. Oh, and make sure to get the offer from them in writing before you give them ANY MONEY, have them send it via fax or mail. And when you pay, use Western Union. DO NOT USE CHECK BY PHONE. Link to comment Share on other sites More sharing options...
firstsource Posted September 25, 2004 Report Share Posted September 25, 2004 Why not check by phone? Link to comment Share on other sites More sharing options...
Chancy949 Posted September 25, 2004 Report Share Posted September 25, 2004 Because they have your checking account information and can withdraw the full amount! You could prob. get it back EVENTUALLY, but it could throw your banking off! NEVER give a creditor ANY access to your money. Also, while you’re at it, I'd also neg. that they remove the TL. or delete it from your credit file. OR make them report it as PAID, NOT paid collection or Settled. Those are just as bad as having a UNpaid! good luck! Link to comment Share on other sites More sharing options...
Poorboy Posted September 25, 2004 Report Share Posted September 25, 2004 Check by phone is ALWAYS a bad idea when dealing with a CA. I had the misfortune of working for one for about a year. In the sweatshop where I worked check by phones were taken by the collection agents and written down on a form, which was kept at the agent's desk. Checks were often submitted on the wrong dates, for the wrong amounts, and even sent to the bank when the accounting department had already verified that there were insufficient funds in the hopes that maybe the poor saps would put in their rent money or some other large deposit in time for the check to clear. These forms were supposed to be shredded, but were instead just taken and thrown into the dumpster behind the building. There was a woman working their who had recently been indicted for fraud at the previous CA for applying for student loans in the names of debtors, and somehow using this information to pay off their debts ( earning her big commissions). Instead of firing this woman, when the company learned about it they did nothing. She is still there now, taking checks over the phone after bullying people into paying money that they may or may not actually owe. These are just a few reasons why check by phones with CA's is always a VERY BAD IDEA!! Link to comment Share on other sites More sharing options...
newyorkchick Posted September 25, 2004 Author Report Share Posted September 25, 2004 great advice everyone. i will call up hhld next week and ask them to settle. i'll make sure i get them to fax over a settlement letter stating that my settlement amount will satisfy the account and ask them to state that they will report it as "paid". i will remember to pay by western union. it all sounds like a great plan. i will let you know how it goes. cross your fingers!! Link to comment Share on other sites More sharing options...
Poorboy Posted September 25, 2004 Report Share Posted September 25, 2004 Good luck with HHLD...I would recommend asking for deletion upon payment, but PAID would be ok. Whatever they agree to do with your CR, make sure you specify that this must also be in the agreement letter they send you. If they try to tell you they cannot put that in the letter, which they may, insist upon it. Make sure they understand that you WILL NOT pay until the letter is to your satisfaction. Anyways, best of luck to you. Link to comment Share on other sites More sharing options...
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