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Hello all, I am new to all this and have a interesting predicament. I am starting the credit repair process, and please let me know if I am doing this right. I have ordered all 3 of my credit reports, I realize that I do owe all this money. Not much mind you, but enough to dent. My currents scores are as follows.

Transunion: 526

Experian: 541

Equifax: 467

Yea I know its horrible. However I want to pay these debts off. But have them removed from my credit. I have read the posts here, but I see conflicting answers on a lot of topics. My intent in this post is to get definitive answers on what to do next. I did call a collection agency today to simply get a address from which to send my verification letter, then got into a debate about paying now, or at least a $200.00 deposit as a matter of good faith. Well needless to say I didnt do it. Thanks to these forums I recently read, I avoided that bullet. Now the thing is I want to pay them off, but considering, and lets be honest, I dont want to pay the full amount on these amounts owed. My first step if I have this right is to write all of my creditors to request them to validate what I owe. I am printing my letters as I type. LOL! I just want to be sure this is the proper order that all of you have done. Then at that point offer a settlement??? Please let me know that I am doing this right.

Thanks for all your help

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Original creditors are not obligated to respond to a DV request. You can send a DV to a CA or JDB at any time, but they're only required to respond if your DV was sent within 30 days of their first contact with you.

That being said, it doesn't hurt to go ahead and send the DV, if you choose. Do you know which debts are within the SOL for collection in your state? What's the SOL in your state?

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Slow your role.

Debt Validation letter is really for when a NEW collection agency comes calling. If these are old accounts, it's too late for that..

Step 1 - Get your free credit reports and see who is reporting what.

Step 2 - Make a gameplan of what items you are going to attack first... Go with 2 at a time, or it gets to be to much.. I recommend older accounts as those companies probably don't have records and are reporting inaccurate info. REMEMBER - this fight is a marathon, going to take at least a year to fight everything.. slow and steady and don't give up if you lose one battle in the war.

Step 3 - Get organized... Folders, highlighters and spreadsheets documenting your every move and expected plan of action.

Step 4 - Dispute with Credit reporting agencies, get "verified", send letter requesting method of verification to credit reporting agencies, get bogus generic letter back, send 623 letter to company reporting.. Get letter back saying error, listings deleted. If not, look for errors in records and point them out to Credit reporting agency demanding delete. (All disputes / letters MUST be sent Certified Mail Return Receipt Requested!!! - plenty of articles here explaining the process)

If you want to settle... PAY FOR DELETE!

One more thing... I found writting my own letters and not using the templates gets better results.. They have seen these template letters millions of times and think you are just playing a game.. Send a real letter and use a tone that isn't too aggressive but lets them know you are organized, informed and ready to see this through to the end.

Edited by brainded
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Under the FDCPA CA don't have to reply to a DV after 30 days, but some states laws require they do at any time. I say send the DV along with the disputes to the CRAs off the bat. Even though they do not have to reply, some will, others will drop it right then and there. IF it gets sold to another JDB they will send the dunning letter, and you repeat with them. After you get your reply, then contact in writing your settlement offer. Get everything in writing. If you can't check your state laws and see if you can legally record the phone call without telling them. With NCO a while back they kept telling me they would not put it in writing that they would delete for pay, but I recorded them saying, transferring me to a supervisor and saying it, then transfering me his supervisor saying it all the while acting as if I was on the fence about paying since they would not offer it in writing. It may not have held up in court, but it made me feel a little better about paying. Luckily within 10 days it had been deleted.

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I don't want to sound negative but what you are trying to accomplish has very, very long odds. Getting one large balance as a pay for delete sometimes does happen. However, I'm on your side but let me play the creditor for a second.

You defaulted or are way behind (legally pretty much the same) and you want to pay but you want to pay less than owed (very common, nothing wrong with that). However, you want a pay for delete. That is something the CRA frown heavily on. Does not mean it won't happen but generally speaking, a creditor does not want to risk violating the contract with the CRA unless it is a good chunk of change.

On top of that the creditor is probably paying 30 or 40 percent to the collection agency on anything they get. Let's take a 200.00 debt (any figure will work). The CA has the debt and assuming they collect the 200.00 from you the creditor gets $130.00 (65%).

Now you probably want a discount around 40% to 50% off. Lets use 40% a realistic figure. So that 200.00 now becomes $120.00 if you pay in full, then the collection agency takes their 35% and the creditor now gets paid $78.00. So the 200.00 debt went to the creditor pocketing 78.00 and on top of that now you want a pay for delete (as you should want).

The creditor now has to pay somebody to draw up that agreement or transfer the call up the chain of command. That means time talking on the phone and/or sending letters. If there is a written agreement, of course somebody in legal will need to look it over. Then there is the postage and mailing costs.

Finally they have to pay another person to process the paper, file the release or agreement, get that to the proper person, note your account, and notify the CRA.

And they have now set themselves up for a nice violation if something falls through the cracks or something does not get done in the time frame agreed.

All that for 78.00 bucks. All that time and energy can be focused on collecting money. Look at your example. You called them to "get info" and it immediatley turned into a money grab (as you would expect obviously). Collection agencies and creditors want their money. If the stakes are high enough they will bend and you might get your pay for delete. However, I mean this, the odds of you getting a pay for delete for all your debts are like hitting the lottery. I'm going on the assumption they are all not single debts in the 5,000.00 to 10,000.00 range.

And on top of everything else, generally speaking, they would be violating an agreement with the CRA if they did the pay for delete.

Just not going to happen. You can try and why not try.

And you bring up the very excellent point of the original creditors. IF any of these debts have been sold and are with junk debt buyers, you don't even have your lottery chance of getting the original creditors to remove from your report. Why would they. Noting in it for them. They got a few cents on the dollar and not one bit of your payment to the JDB ever sees their pockets. No way are they not going to keep that negative report on your CRA.

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