Collection Agency validated my debt

[Caterologist]

I started the DV process by disputing an old apartment debt that was passed to a collection agency (National Credit Systems, Inc) though the credit reporting agencies and sent the dispute and validate letter CMRRR to National Credit Systems, Inc.

The CA validated the debt by sending the original lease from the apartment along with a letter. My question is should I try to settle the debt, ask for a pay for delete, etc? I thought I read on here that settling or paying a collection debt actually hurts the credit score rather than help. Thanks

[isislc]

DV them for the list of the charges. Why should you have to pay for things that are considered normal wear and tear. If the debt is valid, try to settle for a PFD, or partial with a promise that the rest won't be sold off to another CA. A pay for delete is much better than a paid collection. Paid collections are just as bad as an Unpaid collection.

[retmar]

First off, check your state "Landlord/Tenant" laws to assure the landlord followed everything as written. Such as, were you notified within the set parameters by a written communication? Also, many landlords have tried to get tenants to pay for things that are actually normal wear and tear. One of these was if you stayed less than 2 years, you paid for everything. Some have even gone so far as to have you sign papers agreeing to this. We had one here a few years ago. Just before we bought our home, we got new owners in our Duplexes. There was a total of 55 units. Almost half of us moved out. I was curious so called the state to find out. They told me this was illegal and not to sign it. I had to give the name for them to go after. They sold the properties within 6 months. My daughter had an old landlord try to pull things in another state. Called the state, no more problems.

Do understand that a copy of a lease bearing your signature does not prove validity of a debt. They must send you an itemized list of all charges, for what damages they claim, and include how they used your deposit. In short, they have not provided proof of debt.

[Caterologist]

Thank you both for your reply. Actually, the itemized list of charges were included. And honestly everything on it is legit. They aren't trying to screw me out of additionanl dollars. And this was in Georgia. I now live in TX.

[newbie7069]

You said "old".......how old? Is it still within SOL?

[Caterologist]

Yes, 2005. And I don't want to hurt my score as I want to make a big credit purchase in the next year or so. But I know that this tradeline will not look good at all.

[newbie7069]

Then I agree with isislc. A PFD is really your best option. You have more leverage if you have the money to pay in full all at once though.

[Caterologist]

Thanks. I will try that approach tomorrow. I have been reading the other posts about PFD and it seems that many do not have success with it. If this is the case for me, then should I just pay it and have a paid collection on my credit report?

[Amerikaner83]

Before I ever heard of the site I owed 1200 in back rent...they were reporting to EX i think....I paid, they deleted automatically

I got lucky...you may too. But I do recommend paying it...as your "rental history" would be affected adversely by this as well...

[Caterologist]

Thanks for the wisdom

[retmar]

Here is the problem I still have, but, it is based on assumption only.

I am assuming you placed a COA when you moved so as to assure all mail was properly forwarded to you. The USPS only keeps it on file for one year. I ask you again, did the landlord follow state statute in notifying you of the damages, or whatever they are claiming? Why is because if they even missed by one day, they cannot come after you. Yes, the COA would protect them as it is the date metered or cancelled by the USPS (if hand carried) that would apply.

And, let's say, you put a hole in the wall. Is the charge reasonable, such as $40, or is it $100? You need to look at each itemized item and determine if they are reasonable or exaggarated. If it involves rent, such as you moved a month early from your lease, is the amount claimed proper. Take your rent and divide by 30 to find the answer. In short, pick it apart as best as you can. Another example is that $60 is a fair amount to shampoo the carpet, but, if you lived there for a time allowed, they cannot charge you for it. This is why you check your state statutes regarding landlord/tenant. Always keep in your mind that a creditor/CA/JDB/Landlord rely on you not being fully aware of the statutes written to protect both you and them, therefore, will do all they can to squeeze each and every penny they can. I can't stress it enough on you to do this, or you will get screwed.

Lastly, why you want this is so you can gain leverage on resolving this amicably for a lesser amount as well as a deletion. If the CA or whoever is reporting denies you a deletion by tellng you they cannot legally do so, kindly inform them that they misunderstand the statute. The statute only says that IF they report, it must be true. Yes, the CRA's do get upset when asked to delete by a CA/OC/JDB, but, too bad, as those three are who pay them for services. As to your wanting to make a large credit purchase next year, if it is for a house, a lender wants all collections to show a zero balance. Any other, having a paid collection does damage your score, but, do realize, that in one year your score "may" have increased enough to allow you to purchase, plus, the potential creditor will see you did pay the debt within a reasonable time of your knowledge of debt, which you most definitely inform them of. In short, if you must settle for a "paid" on your CR today, and want to buy next month, don't get your hopes up, but, in a year, you have a good chance, just may not be the best interest rate. Let's say you buy a car with a score of 630. You would get, for example, a 13.75% or higher rate whereas next year you have a 678, you would get by with a 5.99%. I can prove this as when we bought our car in 2002, this was our situation, and my score. The latter one is when we bought our Charger in 2005, and my score. My score was 720 two months earlier as we had taken out a HELOC on our home for $30,000. You can see how this dinged me within two months.

[ABaldbrotha]

Thank you, this is very good info.

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MEDICAL MARIJUANA CLINIC IN CATHEDRAL CITY CA

Edited May 15, 2011 by ABaldbrotha