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Please help me clear up my DV confusion!


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Hello all!

I have about 10 outstanding medical debts on my credit report and I am trying to buy a house. I wrote DV letters to all of my collection agencies recently...all but 2 responded back within 30 days. But this is where I am getting confused.

Is a collection agency only bound to the 30 day rule if you sent a DV letter after receiving the initial notice from them that you owe? I thought they were obligated to respond within 30 days at any point, even if the debt is old, but after reading the forums here, I suspect I may be confused.

What is sufficient proof? Remember these are OLD debts, so can they simply send me a statement naming the original creditor with the amount owed?

And, if I did not receive a response at all, do I write the CRA's and ask for the listing to be removed? Any tips on this step?

Lastly, for the ones who did validate, should I attempt to negotiate a settle and delete? Anyone been successful at this?

Important info about this: I am currently preapproved for a home loan contingent upon the fact that I pay off my creditors before closing, so I will have to pay them sooner or later, but I can not lower my credit score in doing so, or I risk my loan... If they wont settle and delete I assume I shouldnt settle at all as this will lower my score?

Lots of questions! Thanks for reading.:)++

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A CA is only required to respond if you send a timely DV. A timely DV is one that is sent within 30 days of their first communication or the first communication that contains the 30 day notice.

If you send a timely DV, they are NOT required to respond within 30 days. However, they cannot continue collection efforts until they do respond. If you send a DV at any other time, they don't have to respond and can continue collecting.

In your DV requests, did you dispute the validity of the debt, or did you merely ask for validation?

You can attempt a pay for delete, but they're not obligation to agree to a deletion. A negative account can remain on your CR for 7 to 7.5 years after the date of last payment. If the original creditors are reporting, go by the date of 1st delinquency. That will tell you how much longer the accounts will remain on your CR.

Are the debts still within the SOL for collection? In other words, are you at risk of being sued?

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"If you send a timely DV, they are NOT required to respond within 30 days. However, they cannot continue collection efforts until they do respond. If you send a DV at any other time, they don't have to respond and can continue collecting."

So this means I can not write the CRA's about the collection agencies that didnt respond and have the info removed?

"In your DV requests, did you dispute the validity of the debt, or did you merely ask for validation?"

I asked for validation.

"You can attempt a pay for delete, but they're not obligation to agree to a deletion. A negative account can remain on your CR for 7 to 7.5 years after the date of last payment. If the original creditors are reporting, go by the date of 1st delinquency. That will tell you how much longer the accounts will remain on your CR."

"Are the debts still within the SOL for collection? In other words, are you at risk of being sued?"

Yes they are. One is scheduled to drop off next month. All the rest are from 2008/09/10

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Asking for validation is not disputing the debt. You can dispute an entry either with the collection agency or with the CRAs. If you dispute, you need a reason. If it is your debt, then something needs to be inaccurate. If you choose, you could dispute the date of first delinquency. They'll just check to make sure it's correct.

If you dispute with the collection agencies, they have to notify the CRAs that the debt is disputed and mark it as such on your CR.

It's easier to dispute with the CRAs. If they come back verified, as long as the accounts are being reported correctly, there's really nothing you can do unless you try a pay for delete.

Mind you, by asking for validation, you've put yourself on their radar. If they haven't been sending you collection notices, they could start doing so.

If you want to try a pay for delete, check your state laws first. In some states, just an offer to pay can restart the SOL.

Unless the SOL for collection in your state is more than 7 years, the account scheduled to drop off next month must not be within the SOL for collection. The SOL for collection and the SOL for reporting on credit reports are 2 different SOLs.

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Well, now I am really confused!

How in the hell are you supposed to repair your credit if paying a debt damages your score and resets the SOL?

I live in Oregon and I couldnt find much info on whether an offer to pay restarts the SOL...but the SOL on collection is 6 years, does that mean the two debts I incurred in '06 will drop off this year? Or is the SOL on reporting on your credit report 7 years?

Ugh. I am feeling pretty helpless at the moment. My credit score can not go any lower or else I lose my opportunity to buy a house which would be a damn shame seeing as I have no credit card debt and perfect loan repayment. 2 emergency room visits have ruined my credit!

Any advice on action I should take?

:confused:

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Even more confused. Checked my credit report today (through Credit Keeper) and it seems 3 of the collection agencies that I wrote the DV's to, are reporting the old listings as new on Experian?

But they were already reporting to Experian? How can the date reported be recent then?

And now there is a address I never lived at being reported! What is going on?

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Well, now I am really confused!

How in the hell are you supposed to repair your credit if paying a debt damages your score and resets the SOL?

I live in Oregon and I couldnt find much info on whether an offer to pay restarts the SOL...but the SOL on collection is 6 years, does that mean the two debts I incurred in '06 will drop off this year? Or is the SOL on reporting on your credit report 7 years?

Ugh. I am feeling pretty helpless at the moment. My credit score can not go any lower or else I lose my opportunity to buy a house which would be a damn shame seeing as I have no credit card debt and perfect loan repayment. 2 emergency room visits have ruined my credit!

Any advice on action I should take?

:confused:

Try a pay for delete if it is that important. You would have to pay the full amount and they probably still won't go for it. They will say they can't do a pay for delete so try a NDA as a back door pay for delete.

On a side note, the credit system works just like any system out there. I mean how fair is it to pay sky high insurance rates for three years because you got a speeding ticket two years prior, going 75MPH in a 65MPH on a straight stretch through Kansas.

I have a friend at the age of eighteen stole a TV from a hotel room. It took twelve years and a pardon from the governor before he could get into nursing school. He had done his probation, been a model citizen, paid all fines and resitution, was married with a kid, had not even got a speeding ticket in the past twelve years, and still had to get a pardon from the governor just to get into nursing school. And on top of that our state, like most, is desperate for nurses to the point they will almost pay you to go to school.

It's just the way our system(s) work. Not right or wrong, just how it works.

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Well, now I am really confused!

How in the hell are you supposed to repair your credit if paying a debt damages your score and resets the SOL?

I live in Oregon and I couldnt find much info on whether an offer to pay restarts the SOL...but the SOL on collection is 6 years, does that mean the two debts I incurred in '06 will drop off this year? Or is the SOL on reporting on your credit report 7 years?

Ugh. I am feeling pretty helpless at the moment. My credit score can not go any lower or else I lose my opportunity to buy a house which would be a damn shame seeing as I have no credit card debt and perfect loan repayment. 2 emergency room visits have ruined my credit!

Any advice on action I should take?

:confused:

First, in regard to the collection of a debt (not credit reporting), the SOL for collection usually begins the month after you made your last payment on an account. That's when an account goes into default.

If your last payment on an account was made in 2006, sometime this year (depending on the month of that last payment) that debt will no longer be collectible in court. They could try to sue, but they wouldn't be successful if you used the SOL as a defense.

However, they can continue to try to collect the debts unless you tell them to stop.

Regarding your credit report, a negative stays on your CR for 7.5 years after the date of 1st delinquency. Go by the date the original creditor is giving as the date of first delinquency (DOFD).

Paying off an old account will not restart the SOL for reporting. It won't change the "date of first delinquency". An entry will still fall off 7.5 years after the DOFD.

If you want to pay them off, make settlement arrangements with the OC. The OC may prefer you work with the collection agency. In any case, get everything in writing. A settlement agreement should state that once the agreed upon amount is paid, the account is considered settled and paid and collection efforts will cease. In addition, once the debt is paid, it should be reflected as such on your credit report.

Here's a link that might help you.

Debt cannot be returned to report after “seven year period”

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Have you tried contacting the OCs? Since these are medical, they likely still own. Ask if you pay them, if they will agree to pull the accounts back from the CAs.

In my case I was told by all 3 (medical) OCs that when they remove the listing from the CA database, it deletes the information from the CA system. When you dispute with the CRAs, there is no information for them to confirm, therefore, it is deleted.

Oh and get it in writing from the OC - have them copy you on what they send to the CA.

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Thank you everyone!

I did try contacting one of the original creditors this morning. I was told that it is Oregon law that 2 agencies can not collect on the same debt and that I would have to pay the collection agencies. They seemed like they would love to take my payment but couldnt. Can anyone verify this?

But I am still not clear on the impact of a paid-in-full on my CR. If I send letters asking for a pay-for-delete, and they say no, and I pay the bill, wont that hurt my credit score?

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