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Trying to settle collection accounts; Need advice and guidance


exploited
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Hello everyone.

I recently came across this forum, and after spending considerable time reading everything on here, decided to seek some advice about my own debt matters.

I have about $25k of debt spread over 3 main credit cards. It is mostly due to losing employment a couple years ago, and I am just beginning to come back to terms, and have already repaid a few cards after they went to collections.

Here's my debt as of now:

1. Bank of America/MBNA - $8,262 (Delinquent since 02/06, charged off) - I called up BoA yesterday, and they said that the account was closed at their end, and had been purchased by NCO. I would have to work with NCO to pay it off.

2. Chase - $7,575 (Delinquent since 06/06, charged off) - This account was seemingly purchased by MRS Associates, although neither NCO, nor MRS show up on my credit report. I called and worked out a 50% settlement with MRS that should be paid off by the middle of next month. I asked the rep about taking it off my credit report, and she said that they would mark it as settled, but I could call up the 3 reporting agencies and have them remove it. Is this true?

3. Chase - $8,362 (Delinquent since 06/06, charged off) - This one has probably been purchased by FMA Alliance. I haven't gotten around to trying to settle this, but wish to work out something like the account above the next month or so.

Now, my question is, am I doing this well? I know most people on here recommend never talking on the phone, and starting by disputing, but I wasn't confident about it, especially since all these accounts have been charged off already, and none of the collection agencies show up in my credit report. I did, however, get calls from them.

Also, would it be really possible to get the negatives removed as easily as by just calling the bureaus once I am done paying the entire settlement account? I have been reading on here that it's not legal for the collectors to sell the remaining amount to other collectors, so I am guessing I am safe there.

What about taxes? Should I call them up again and specifically discuss tax issues?

I am considering using something like Lexington Law to clean up my history once I am done repaying every account. I know I could do it myself, but is it alright if I wish to go with them just to make things easier?

Thanks for your time! I would really appreciate any and all feedback/advice.

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I know most people on here recommend never talking on the phone, and starting by disputing, but I wasn't confident about it, especially since all these accounts have been charged off already, and none of the collection agencies show up in my credit report. I did, however, get calls from them.
here is why most people here are wrong..

you want to talk on the phone as long as you are recording it without their knowledge. Virginia is a 1 party state, meaning you can record without informing them.

Why do you want to talk?see Recorded Calls Info-Click

also, regarding disputing

DVing a CA is a red flag to collectors that:

a) you are trying to wiggle out of a debt ( which may prompt them to sue more readily) and it tells them

B) you know what you are doing

DVing is NOTthe magic bullet it used to be. Racking up violations ( on recorded calls) is a far more effective method.

then, once you have several violations 'in hand' then do a DV if you are so inclined.

your 30 day window to do a proper DV is over, right?, so at this point I wouldn't even bother..

your best strategy here is to try to get violations when you are on a recorded call.... as described in the link I gave above

act stupid as if you don't even know what the FDCPA is, make them angry and the violations begin to fly, then do the DV later if you want.

Also, would it be really possible to get the negatives removed as easily as by just calling the bureaus once I am done paying the entire settlement account?
sometimes it is that easy, but many times it isn't that easy. What You want is a signed agreement or to have them say it on a recorded call that they will never report to the CRA.. getting a signed agreement is very difficult, getting them to say it over tyhe phone is much easier... and if they say it is illegal then you

have your first violation (misleading statement).

As far as the OC's TL... sometimes when an account is settled(or PIF) it will get archived.... if you dispute it they may not bother

to verify an archived account and it will get deleted that away

I have been reading on here that it's not legal for the collectors to sell the remaining amount to other collectors, so I am guessing I am safe there.
if they agree to settle the debt, than yes it is illegal to sell the remaining balance, the problem is that most agreements are oral and cannot be confirmed... ( another reason to have the recorded calls)

or just get the agreement in writing.

What about taxes? Should I call them up again and specifically discuss tax issues?

talk to a CA about your taxes?- hell no. .. whatever portion is written off is considered income for next year.
I am considering using something like Lexington Law
DON'T do it... you can do it yourself... you wouldn't hire someone to tie your shoe, credit repair is easy..

when you know how.

I suggest reading the book recommended by this site... good credit is sexy.

but first read Recorded Calls Info-Click

2. Chase - $7,575 (Delinquent since 06/06, charged off) - This account was seemingly purchased by MRS Associates, although neither NCO, nor MRS show up on my credit report. I called and worked out a 50% settlement with MRS that should be paid off by the middle of next month. I asked the rep about taking it off my credit report, and she said that they would mark it as settled, but I could call up the 3 reporting agencies and have them remove it. Is this true?
it will show as settled... and no you can't just call up the CRA's and ask for it to be removed.. if it were that easy no-one would have bad credit...

but... once it gets archived they may not respond to a dispute, wait 6 months after it gets settled to dispute it.

>

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I have a friend that works at the post office and he was telling me that a CMRRR can be refused.

So I asked him how we can still get the same thing done? His answer, PPDC(Priority Post with Delivery Confirmation). Which cannot be refused, it is delivered just like normal mail. and you still accomplish the same thing, the confirmation of delivery

I also got to thinking we have been using this CMRRR for so long now that I am sure the CA's know about it, and if I was working for a CA and a CMRRR letter same to me It would throw up a flag in the back of my mind that would READ CAREFULLY, THIS PROBABLY FROM SOMEONE TRYING TO WEASEL OUT OF PAYING A BILL.

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Thanks for the replies.

I got a voicemail from FMA in the morning today saying that they had left a lot of messages for me, and that I should call them back today. Now, as you know, I really do want to pay off/settle with them, but since I am paying for another account this month, I have no funds to pay FMA. I have a feeling that if I call them back today, they'd give me the standard threat about paying it off in 30 days or else.

What should I do?

Thanks

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