Pay for delete. 2 questions.

[Drake Savory]

1) On my CR, there is a chain for the same debt. OC -> CA1 -> CA2. These debts are old but everytime it gets sold off a new line item starts. Some do not even have a line item for the OC but there's one for CA3 and CA4. What is the best way to get all of the line items removed for a PFD?

2) CA's are at best incompetent and at worst liars. Assuming that, what if I negotiate a PFD, pay it and they don't (or refuse) to delete? Do I take them to court or sent a copy of the agreement to the CRA under the FCRA?

[tx3amigos]

I had something similar to your #1 question. I sent a dispute letter to each of the credit reporting agencies and told them that these are duplicate accounts for the same debt. They removed the old ones so only the current one (OC & CA) shows.

As for #2... so far the companies have deleted as they promised. If they don't, I'm going to sent a copy of their letter promising to delete to each CRA. Then send a reminder letter to the CA and then report them to the attorney general of my state and the BBB and anyone else I can think of..... Anyone else have a suggestion?

[willingtocope]

If you have a letter signed by an officer of a JDB agreeing to delete thekr TL if you pay them, and they don't, sue them for breach of cintract. The CRAs, the AT, the BBB won't help you.

Note that paying a CA to delete their TL is useless. The OC or JDB can still report.

[Drake Savory]

How do I tell if it is a CA or a JDB? The tradelines look the same to me?

[willingtocope]

If the OC sold it, their TL would say "sold to another lender" and their balance would be $0.

[retmar]

You mentioned these claims were old. How old? Your state's SOL is 3, 6, 6, 3. For example, if this is a CC, and over 3 yrs old, the SOL has run, and they have no legal recourse to the claim. If an auto loan, the SOL is 6 yrs.

Also, if the CA/JDB/ATTY who is reporting the negative info has not notified you, in writing, that they may, or will, report, they are in violation of FCRA 623. BUT, if you have moved since the original debt went bad, and never notified OC, or filed a change of address, forget it. All they are required to do is to send to last known. Understand also that if you did file a COA, and they never notified you, it is a violation, but, they can get around it by simply stating they have a program in effect to keep this from happening. It does not stop you from letting them know of the violation, and use to your advantage to settle for a lesser amount, if the debt is still within the statute. If not in statute, tell them to go eat Maggot Droppings.

As "willing" pointed out, the TL can still be reported from the date of first delinquency for 7 years, by the OC, and the CA/JDB/ATTY. If a JDB tells you they can report from date they purchased, please let us know. This is illegal. As "willing" also referenced, if the TL shows those words, or like words, it is a legit reporting. As to the earlier CA/JDB/ATTY who reported, you can get rid of them fairly easy. By this, you would dispute with the CRA's they are "not mine". Then, if they respond that it is yours, you will send them an intent to sue, as they must be working the claim to be able to report it as a collection account. If they aren't working, or own the debt, they cannot report as they have no facts on file, such as current amounts, etc. In short, they cannot prove any claim they do not possess or have in their systems.

My opinion is the following. If the debt is past statute, thus, no legal recourse, just tell them to go away. But, if you feel that you should morally pay them (they were nice to me overall, treated me professionally), you would use the verbiage that due to their own actions, they waited too long to recover, but, you, in all fairness, will pay them at $.25 on the dollar, as long as they will delete the TL in it's entirety, and agree to not sell, transfer, or reassign, for any unpaid balance. This would apply to a JDB also, but, you would use the fact they only paid pennies on the dollar for the debt, but, you being of good moral character, will pay them $.15 on the dollar.

These amounts are low as most often they will respond with a higher amount, which you counter with a slight increase, but, never go over $.40 max. You get the drift.

[Flyingifr]

I had something similar to your #1 question. I sent a dispute letter to each of the credit reporting agencies and told them that these are duplicate accounts for the same debt. They removed the old ones so only the current one (OC & CA) shows.

As for #2... so far the companies have deleted as they promised. If they don't, I'm going to sent a copy of their letter promising to delete to each CRA. Then send a reminder letter to the CA and then report them to the attorney general of my state and the BBB and anyone else I can think of..... Anyone else have a suggestion?

If you have a PFD in writing and you P and they don't D you have a suit against them for Breach of Contract.

[Coachway]

1. How long should I wait before contacting the creditor about a PFD?

2. I owe Verizon about 700. How much should I offer them? Should I contact the original creditor (in this case, Verizon) or the collection agency themselves?

I also have some credit card debt around 9k that is in collections.

My understanding is I ought to contact Verizon, hope they agree to the PFD, and when it's paid, contact the three CRB's and they'll ensure Verizon is gone, as well as the Collection Agencies. Right?

[retmar]

"coachway", the first thing you need to do is to determine if the debts are out of statute. How old are they? Your state's SOL is 3, 5, 6, and 3 (top of this page).

Verizon is 3 years. If this debt is over that, they have no legal recourse to the debt. Therefore you would compose your letter reminding them of this and that if they agree to delete, you will pay them $.25 on the dollar. You offer low as they may deny the offer, or, counter, at a higher percentage, then you counter at maybe $.30. You get the drift. If a CA is involved, is it an assignee, or did they buy the debt. If assigned, deal with Verizon. If sold, Verizon has washed their hands of the debt. Many times, Verizon uses NCO as an assignee. NCO is one of the worst violators in this country. Dealing with them uses a different approach. We can advise you when you find which position they are in, either assignee or new owner. Also, know that Verizon will not give you service until the debt is paid. They may not have legal recourse, but, they are not required to open a new account, ever. And, if and when you pay, and have proof of this, Verizon, at most, would open a new account requiring a high deposit. Or, if unpaid, and they still own debt, might open a new one, but, will demand old be paid first, or, at the least, paid over a specific time period, like three months, and, still want a high deposit.

The SOL on the CC's is also 3 yrs. If over that date, you would use the same form of contact.

When asking for a PFD, you always stipulate in your letter that they must respond in writing as to agreeing and that the signature must be in the hand of an authorized person, no computer generated. As some have done in the past, not many, purchased a Money Order, or filled out a check in the amount offered, and enclosed a copy of same, hiding all account numbers. And, upon receipt of their response, you will remit immediately, the amount offered. Understand that it can take up to 90 days total for an item to be deleted, but, by your having them send you a letter of the deletion, you can send this to the CRA's and it will be deleted within 30 days.

[Coachway]

"coachway", the first thing you need to do is to determine if the debts are out of statute. How old are they? Your state's SOL is 3, 5, 6, and 3 (top of this page)....

retmar, I greatly appreciate the prompt response.

The debt is all relatively young. All from 2009, primarily. I've always had good credit, but found myself essentially unemployed for a number of months, and when you have four kids, well, things can snowball quickly.

I have concerns about trying to clean up my credit, because we're going to have to move in the somewhat near future, and I'm not sure I'd pass a landlords credit check right now.

I have four credit cards and the verizon account in collections, and 2 with payment arrangements.

From what you're telling me, I shouldn't attempt the PFD until the accounts SOL has passed.

Another question... if I pay or settle with the CA, is there anything I can do to get the Charged off Account off my credit report?

[retmar]

Sorry for being slow, got busy with household "musts" yesterday. Being within the SOL does not make a difference as a whole. You can still ask for a PFD. The one and only difference is how you approach it. Using your comments only, you can approach the OC in writing as to how this occurred, such as was laid off.

Say "The reason my account fell behind was due to a job loss. I tried to stay current, including my contacting you to make arrangements. Unfortunately, your reps would not allow this to happen, therefore, the account was charged off. You have assigned this to an outside collector who also refuses to work with me. You must understand that my intent is to not avoid payment of account, I only ask for some assistance in getting it back on track, or paid off, (whichever applies here). Therefore, if you will accept my offer, I will pay $XXX a week/bi-monthly,/monthly until this is resolved. I only ask in your accepting this offer that you recall this account from your assignee, ABC Collections, and ask them to delete all negative information reported. I say this as due to the overall circumstances, we must now move to another home with less rent, and, it is doubtful a new landlord will accept my credit report. We have four children and no other place to move to." Also include the mention as to how good the account was prior to the current status, and, would they look hard at this in determining your request.

This is just an example, play with words the best you can to fit your own situation, as well as relationship with the specific creditor.

Now, hopefully, you have kept each letter from all of the CA's. Why is that I want you to read each of them and see if they told you they may, or will, report negative info to the CRA's. If no notification in writing, you have them in a violation, as they are required by FCRA 623 to notify you in writing. BUT, if you told them to cease further contact, there is no violation, unless you allowed them to communicate by mail. If you never received any written communications from any CA involved, you also have a violation. The same applies to the OC, but, most of them include the words in the statements following the first missed payment. There are even some who include the words in each statement, no matter if current or late. Let us know either way for taking a step to fix this.

If any of the creditors agree to your offer, and since you asked in your letter for written acceptance of your offer, you would send a copy of that letter to the CRA's for deletion. Why is that it can take up to 90 days for a CA to delete. This way is done within 30 days. And, if they agree, but, will not delete, a new landlord would see a zero balance due, which is a plus, over an active collection. At hat time you would explain the circumstances and how you resolved it.

Another way to cause the TL's not to show is to notify the CA's you dispute the claims made. There are different ways to approach this. Why is that if a debt is disputed, they must report as such. The CRA's then place the word "disputed" on the TL. Then, if a CR is pulled, the potential creditor/landlord will not see the TL, as only yourself, and the reporting creditor will now see it. Though the FDCPA says 30 days at time of initial communication, it does not say that you can't dispute after this, only that the CA can "assume" the debt is valid. And, even if they would not agree, FDCPA 807(8) has no time limit attached to it.

Edited September 19, 2010 by retmar