New Spin on Pay For Delete....

[adminppdotcom]

I anyone is not familiar with the Credit Repair Organizations Act (CROA), there are very strict guidelines they have follow. But there are only a few guidelines to qualify as a Credit Repair Organization. The definition of a CRO is :

(A) means any person who uses any instrumentality of interstate commerce or the mails to sell, provide, or perform (or represent that such person can or will sell, provide, or perform) any service, in return for the payment of money or other valuable consideration, for the express or implied purpose of--

(i) improving any consumer's credit record, credit history, or credit rating; or

(ii) providing advice or assistance to any consumer with regard to any activity or service described in clause (i); and"

(being a CRO is neither good nor bad btw as long as they follow the law)

So having the definition in mind, if a consumer negotiates payment in return for a debt collector deleting the negative account or the negative info on an account for "improving any consumer's credit record, credit history, or credit rating", that agreement falls under CROA, and the debt collector has to obey the CROA laws.

How this might come in handy.

If a consumer was to word the agreement to make it clear that the consumer is paying the debt collector for the purpose of "improving any consumer's credit record, credit history, or credit rating", the debt collector would have to have a written contract with the rights under CROA, provide a 3 day (5 in some states) right to cancel, and would not legally be able to cash the payment until the "services" are provided in full (meaning they would have to delete the neg info first)

I have not tried this, but there is at least one case along these lines with a debt collector, and numerous involving car dealers who offer credit improvement loan programs often called "fresh start" loans. The consumer bought cars and returned them in 3 days but was not given a refund, or ws not given a contract etc etc, so they sued LOL....

CROA http://www.ftc.gov/os/statutes/croa/croa.htm

Also check you state CROA-like laws.

[divemedic]

(A) means any person who uses any instrumentality of interstate commerce or the mails to sell, provide, or perform (or represent that such person can or will sell, provide, or perform) any service, in return for the payment of money or other valuable consideration, for the express or implied purpose of--

It says a CRO is performing this service "in return for the payment of money or other valuable consideration"

So would you dong it yourself still be covered?

[adminppdotcom]

(A) means any person who uses any instrumentality of interstate commerce or the mails to sell, provide, or perform (or represent that such person can or will sell, provide, or perform) any service, in return for the payment of money or other valuable consideration, for the express or implied purpose of--

It says a CRO is performing this service "in return for the payment of money or other valuable consideration"

So would you dong it yourself still be covered?

The "service" is the actual changing of the trade line which causes the improvement to the credit standing. Or even the suggestion that payment for deleting it would improve the consumer's credit rating. A consumer cannot report/change items on their own consumer report.

What I forgot to add- If the debt collector did violate CROA, the consumer could sue them for the amount paid, plus damages (like the amount of the original debt).

[gdouglaslee]

That's more trouble than it is worth.

It is easier to simply write a letter saying the debt is not yours but you don't want it on your credit report so you will pay the debt if it is deleted.

The debt collector will usually respond with a letter claiming it is "illegal" or federal law prohibits them from deleting.

Bingo. FDCPA violation in writing. Now use that to anull the debt and get it deleted.

[wunderwoman]

Gdouglaslee,

Can you explain your violation theory a bit further? Why is this a violation?

[adminppdotcom]

That's more trouble than it is worth.

It is easier to simply write a letter saying the debt is not yours but you don't want it on your credit report so you will pay the debt if it is deleted.

The debt collector will usually respond with a letter claiming it is "illegal" or federal law prohibits them from deleting.

Bingo. FDCPA violation in writing. Now use that to anull the debt and get it deleted.

What are you talking about? I dont see any violation in the example? Did you not finish the violation part of the example?

And actually, no one has to remove accurate negative info. Because the FCRA requires accurate information, a STRONG arguement can be made that by deleting accurate negative info, the consumer report is NOT accurate.

And before you spout off and call me names, there is case law on

this......but I know case law isnt important to you.