Starting off, first questions: charge-off & purchased debt

[coloradomma]

Good day everyone!

Finally getting serious about fixing my credit. Going to keep a bit of a log of my actions here, and ask questions that I can't answer.

Got copies of all my reports, prioritized my accounts (18 total accounts, 15 of which derogatory) by reverse opening date (some are falling off within 1 year, so I won't even bother), and sent certified return receipt debt verification letters to all three CRAs. Following the directions on this forum & site mostly to the point. I'm about to send address dispute letters to the CRAs as well to get my old addresses removed from my reports to attempt to dispute an older court judgement.

Most disputed accounts dropped off within a week of mailing, and some are slowly coming back. I'm waiting for the CRAs to finish this process first before making bigger plans to see what's left and reprioritize.

In the meantime, I have send PFD offers for three relatively new listings (unpaid utilities bill & medical bills) which I didn't even bother disputing with the CRAs since they are so new. I sent letters to the collectors, not the OCs, offering 25% of the debt in exchange for deletion, threatening request for debt validation, we'll see how that goes, I'm aware I might have to pony up the whole sum for PFD, which is ok since these debts mount up to less than $1k.

Another account, which I did dispute with the CRA but already came back as verified is an old credit card that was settled for less than full balance, and I have a feeling will be trouble. The original creditor's listing in all 3 CRAs is as follows:

"PAID, Payment after charge off/collection. Purchased by another lender"

Then there's another listing in all 3 reports with the SAME exact account number, but listed under "LVNV Funding, LLC" and as an "Installment Account", which it isn't:

"Derogatory, Factoring company account, Collection/Chargeoff, Collection Account, Account information disputed by consumer, meets FCRA requirements"

The "High Balance" on this second listing is $359, the same High Balance as the OCs listing, but the Past Due amount has climbed by $1/day to $668 over the past year or so.

1) What's up with the Past Due amount increasing? Is that legal?

2) What's up with the duplicate account? Are they allowed to sell a charged off debt like that, and try to collect on it a 2nd time?

3) I read a lot of negative stuff about LVNV, I'm motivated to go after them if they're doing anything illegal.

I'll keep posting in this thread, updating on my progress hoping to be able to help anybody else in my shoes & hoping to get help where I get stuck.

Thanks!!

[coloradomma]

A little more info about the LVNV account from my Experian report:

----------------------------------------------------------

LVNV FUNDING LLC

Potentially Negative Closed

Account Type: Debt Purchase

Status: Closed (yet the balance keeps rising!?)

Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department

Comments: Account in dispute-reported by subscriber

-----------------------------------------------------

[BV80]

I'm aware I might have to pony up the whole sum for PFD, which is ok since these debts mount up to less than $1k.

CAs and JDBs are not required to delete a negative entry on your CR just because yo pay the full amount of the debt. IF they agree to do so, get every detail in writing and signed by an authorized person. Just something to think about.

Another account, which I did dispute with the CRA but already came back as verified is an old credit card that was settled for less than full balance, and I have a feeling will be trouble. The original creditor's listing in all 3 CRAs is as follows:

"PAID, Payment after charge off/collection. Purchased by another lender"

Did you settle with the OC and can you prove it?

[coloradomma]

Good points, thanks!

CAs and JDBs are not required to delete a negative entry on your CR just because yo pay the full amount of the debt. IF they agree to do so, get every detail in writing and signed by an authorized person. Just something to think about.

Aware of this through the FAQ & newbie posts, I will make sure to have every ounce of proof before making a payment, thanks! Hoping they will accept the offer, or counteroffer lower than 100% for a PFD. I'll report back.

Did you settle with the OC and can you prove it?

I did settle with the OC, but I had no clue what I was doing when I did so 3-5 years ago, I will have to figure out how to get that information. Should I contact the OC to request proof of settlement, or find records of the settlement payment? I don't even remember what bank account I used at this point...

[BV80]

Good points, thanks!

Aware of this through the FAQ & newbie posts, I will make sure to have every ounce of proof before making a payment, thanks! Hoping they will accept the offer, or counteroffer lower than 100% for a PFD. I'll report back.

I did settle with the OC, but I had no clue what I was doing when I did so 3-5 years ago, I will have to figure out how to get that information. Should I contact the OC to request proof of settlement, or find records of the settlement payment? I don't even remember what bank account I used at this point...

You could contact the OC. Hopefully, they'll have information. If they don't, you need to search your bank records.

[bloomingdale]

I'm sure this thread will help many who are experiencing the same dilemma on credit fixing. I will be following this thread and will possibly contribute in some way while learning at the same time.

[davephx]

After charge-off interest like at 30% depending on state limit can keep increasing the balance due.

In some, most or all states, interest keeps being added but may be at a different rate after a judgment or filing suit.

In Arizona for example:

In Arizona, last year the legislature modified the statute relating to interest rates on judgments. Previously, the law provided for a ten percent per annum rate (unless another rate was agreed to in writing.) The modified law mandates that the interest rate be set to the lesser of 10 percent per annum or at a rate per annum that is equal to one percent plus the prime rate per annum as of the date of judgment, (unless specifically provided for by contract or statute) This is now about 4.25%. It was 10% before without a formula.

[admin]

After charge-off interest like at 30% depending on state limit can keep increasing the balance due.

In some, most or all states, interest keeps being added but may be at a different rate after a judgment or filing suit.

In Arizona for example:

In Arizona, last year the legislature modified the statute relating to interest rates on judgments. Previously, the law provided for a ten percent per annum rate (unless another rate was agreed to in writing.) The modified law mandates that the interest rate be set to the lesser of 10 percent per annum or at a rate per annum that is equal to one percent plus the prime rate per annum as of the date of judgment, (unless specifically provided for by contract or statute) This is now about 4.25%. It was 10% before without a formula.

Nice!