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Dealing with OCs...


Cole
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So with all my greencards back, and zero validation, I am pretty sure I can clean up the CAs off my report. But I know this is only temporary until new CAs picks up these accounts.

So my Q is this... how do I deal with the OCs to settle? I have already done all my studying on settling, and how to cover my butt. But a few years ago when I tried to work with OCs, I got nowhere. They refused to talk to me and said I had to speak with the CAs. Most of them said they didn't even have any info on me anymore, it was all gone off to CAs.

The clock is running out for me quickly, so I was wondering how exactly to approach these OCs and settle out the debt so I can get ALL the negative reporting off my CR. Not to mention this insane burden that's been over my head for 5 years now. :evil:

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I'm sorry... I should clarify a few things. All these accounts are COs. Originally most were CO back in like 2001. In 2002 I enrolled in a debt consolidation program, resetting the DOLA I assume. I made payments for 2 1/2 years. When my dh and I split last year, he promised to make the payments till I got on my feet....of course he didn't....of course everything went back into CO since then. So these are valid debts (of course the balances are insane now and much more than the original). I don't see any way other than to settle them out now....but I'd like to know how to get them to even speak to me. I am NOT dealing with CAs. I tried to settle two different accounts through CAsearlier this year and they refused to report to the CRAs in an acceptable manner, so I am done messing with them. I loathe these people and want to work directly with the OCs.....

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Well...first off...the debt consolidation program should not have reset the DOLA as far as the FCRA was concerned. The DOLA is measured from when the "account was brought current", which probably didn't happen. It may, however, have had an effect on the SOL for your state which is entirely different.

And...second...you need to determine if the debts are still owned by the OCs, or if they have been "charged off / sold to another lender". If they're now owned by a JDB, then send them a DV, C&D letter and tell them to go pound sand. You might get sued, but you really don't owe those people anything, and your divorce, debt consolidation, etc, may serve you well in court.

If the debt is still owned by the OC, try writing a letter to the execcutive offices of the OCs and explain that your ex was supposed to take care of these, but obviously didn't, and that you'd like to make it right. Don't mention the debt consolidation program, but say that you've been trying to work with the CAs but they've all been abusive and threatening to put you in jail and you just can't handle the stress anymore (a little crying on the shoulder) and ask what they can do to help...

While this may not work, it might help if the CAs take you to court.

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They're all CO... so this means I can't work with the OC?? None of the CAs have validated, so I'm about to get them all off my CR, but I'll still be stuck with negative TLs from the OCs...not to mention a new CA will pop up in no time flat I'm sure. How do I get the original bad stuff taken care of if I can't work with the OC and the CAs are worthless??? :(

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CO is just an accounting term that means "charged against accrued income". It does not mean that the OC has sold it. You need to check your credit reports to see if the OC's TL says "sold to another lender".

If the OC hasn't sold it, you can still work with them, but you're going to have to cry on their shoulder...

If the OC has sold it, then here's a theory I'm suggesting. I don't know if it will work, but its worth a shot. Write the OC a strongly worded letter pointing out that they are violating the FCRA by reporting incorrect info. If its a CO, then demand that they either remove the words "charge off" or give you a 1099c for the amount "forgiven". They either forgiven the debt (in which case you'll pay taxes on the income) or they've sold the right to collect it. They can't have it both ways.

"Sold to another lender" doesn't have quite the impact on your credit scores as a "charge off". And, the amount you'll pay in taxes is considerably less than the JDB will try to gouge you for. Once you have a 1099c, the JDB has worthless paper...there are court cases that say that if its "income", the JDB can't collect.

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Here's one way that I got MBNA OC off of mine:

1. DV'd OC twice CMRRR and got no response.

2. Disputed with the CRAs.

3. Called OC directly at numbers listed in CR, they told me they had no records, I got the name of the person working. (You could also record the conversation).

4. Wrote a letter to all three CRAs including copies of my CMRRR from DV, explaining my dispute and informing them that the OC says there are no records, therefore the CRA shouldn't be able to verify the account. I tell them that if they continue to verify the listing when there are no real records available, then they are liable for parroting information they know to be unsupportable by evidence. Let them know that you mean business. (If you recorded the OC conversation you could include a CD copy of it too).

Most likely, the CRAs will send you a form letter that doesn't really address what you've told them. Nevertheless, there is a possibility that in a week or two the TL gets deleted.

This worked for me with MBNA but not with DMCCB. I am trying a second round of this with the latter.

Good Luck!

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Thanks for the info everyone... I think for the rest of the week I'll take a breather from all this and begin my work after the holidays. Between working overtime and working what FEELS like full time on my credit, I'm gonna burn out before Christmas! lol!

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