kcnjamie

How to repair credit report if chared off debt is listed under OC and not collection?

Recommended Posts

Hi Everyone!

 

I am a newbie and have just started credit repair. I have been reading the site and just started looking through the forums so I still have a lot to learn. I know it's probably here somewhere, but so far in my research I haven't come across this answer.

 

Basically, the negative items on my credit report are either shown as original creditor charge-offs or collections. The majority of the collections are medical and have no connection to any of the original creditor charge-offs. So as one of the first steps, I contacted the original creditors for the charge-offs to find out where the debt is. What I found out is that most of the creditors have sold the debt to collection agencies. But the collection agencies are not listed on my credit report.

 

At this point I am not sure what to do to actually repair my credit. If I do anything with the collection agency, it will not have any bearing on my credit reports because they are not listed on there. Also, the original creditor information will still be listed on the report as negative because they have already charged-off the debt.

 

Am I looking at this the right way? What should/can I do to actually improve my credit report with this situation?

 

Thanks in advance for the help!

Link to post
Share on other sites

@kcnjamie

 

The first thing you should do is to dispute everything negative on your credit report.  

 

http://www.creditinfocenter.com/repair/Repair.shtml

 

The collections (non-medical ones) could show up on your credit report later.  I would keep a sharp eye lookout for them.  With the non-medical collections, you can still attempt to negotiate a settlement with them (if you have the cash).  Part of your settlement would be to agree to not report on your credit report in the future.  

 

Here is the guide to settling your debt with collection agencies (recommended for non-medical collections): 

 

http://www.creditinfocenter.com/debt/settle_debts.shtml

 

For the medical collections, I recommend pay for delete.  

 

http://www.creditinfocenter.com/debt/pay-for-delete.shtml

Link to post
Share on other sites

Thanks you so much for the response!

 

So the first thing I should do is dispute everything negative on the credit report....while that is going on, do I just wait for the dispute to complete or should I at the same time work on other things?

 

For instance, since I will try to do a PFD on the medical collections, do I work on that while waiting for the dispute or just wait for the disute to finish?

 

For the non-medical collections not on the credit report, should I wait until after the dispute or should I work on them now (to settle and not reporting on credit report)?

 

I am still not sure what to do about OC on credit report and how to repair that other than if they fall off during dispute or after 7 years......

 

Last question: I am very tempted to do dispute online with CRA, but I have seen everywhere here say not to but send it in writing. My concern is while the dispute is happening by mail, it is taking longer to have the dispute on record and OC and CA can add items or move forward with other collection actions while I am waiting for the dispute to happen. It almost feels like as I am taking the steps to repair my credit and feel now in the postion to start working ont it, I am actually doing nothing to fix it for 30-45 days. I know that is a weird thought considering I obviously waited long enough for bills to go into collections, but now I am prepared to fix the mess I got into and am feeling anxious to wait any longer.

 

So my question is: How bad is to do online dispute versus mailing disputes; and why aren't records from online disputes enough?

 

Thanks again for all the help!

Link to post
Share on other sites

 

So the first thing I should do is dispute everything negative on the credit report....while that is going on, do I just wait for the dispute to complete or should I at the same time work on other things?

 

For instance, since I will try to do a PFD on the medical collections, do I work on that while waiting for the dispute or just wait for the disute to finish?

 

No, wait for the disputes to finish. 

 

For the non-medical collections not on the credit report, should I wait until after the dispute or should I work on them now (to settle and not reporting on credit report)?

No, wait for them to finish.  If some come over, you are done with them, so you could save yourself unneeded work. 

 

I am still not sure what to do about OC on credit report and how to repair that other than if they fall off during dispute or after 7 years......

You're going to dispute everything negative with the credit bureaus, so this should include these accounts. 

 

So my question is: How bad is to do online dispute versus mailing disputes; and why aren't records from online disputes enough?

Never use the online dispute.  If the credit bureaus take longer than 30 days, you will have nothing to show that it took longer than 30 days other than your records.  When you send your disputes CMRRR, you will have independent documentation of when you sent your account.  

 

 

@kcnjamie - I hope this helped!

Link to post
Share on other sites
So the first thing I should do is dispute everything negative on the credit report....while that is going on, do I just wait for the dispute to complete or should I at the same time work on other things?

Are those negatives past the SOL?

 

If not, why would you dispute those and draw attention to your debt especially if they are nearing SOL?

Link to post
Share on other sites

Are those negatives past the SOL?

 

If not, why would you dispute those and draw attention to your debt especially if they are nearing SOL?

I don't think disputing close to the SOL is a problem.  Just my opinion.  

Link to post
Share on other sites

I don't think disputing close to the SOL is a problem.  Just my opinion.  

Should you be disputing any negatives that are unpaid/collections if they are not past SOL yet?

 

What is the benefit of improving your credit score if you still have substantial debt that creditors can sue you over?

IMO, I don't really see much benefit that you could use immediately to your advantage.

 

If you succeed in getting every negative removed, the minute you apply and get approved for a new credit card, creditors would know you are making on time payments so they would know of your improved finances and sue you. If you succeed in getting a loan, creditors would know you have new assets to sue you over.

 

?

Link to post
Share on other sites

Should you be disputing any negatives that are unpaid/collections if they are not past SOL yet?

There are schools of thought here that think you should just let sleeping dogs lie.  I'm of the opinion that you should dispute all negatives.  See what comes off.  It is possible that by disputing you could start action on the part of the collection agencies.  I don't have a percentage chance for any collection agency on how likely they are to sue.  However, suits by collection agencies can be beaten.  Witness all the successes we have had here on the board. 

 

 

What is the benefit of improving your credit score if you still have substantial debt that creditors can sue you over?

IMO, I don't really see much benefit that you could use immediately to your advantage.

 

The advantage is that you will get as many collections as possible removed from your credit report for the price of CMRRR.  Once a collection agency is gone, they will not come back and sue. 

 

If you succeed in getting every negative removed, the minute you apply and get approved for a new credit card, creditors would know you are making on time payments so they would know of your improved finances and sue you. If you succeed in getting a loan, creditors would know you have new assets to sue you over.

If a creditor is not reporting on your credit report, they are also not pulling it at a later date.

 

@credit_h - good questions!

Link to post
Share on other sites

Just like the OP i have the same question. I have so many dual (The OC & the CA) reporting for atleast two accounts that are now past SOL & do show up on my credit report. They all will have their 7 years in June 2015 thru Nov 2015;

I believe the objective here is to remove the tradeline not exactly have them (CA or JDB) shut up and let it just hang on there inside of our own credit reports.

So if the objective is removal of CA/JDB that is past SOL

A C &D letter should suffice or is it?

 

Now onto removing the ones within the SOL which have been chargedoff; Anything less than removal of tradeline is and should be just "UN-ACCEPTABLE".settlement..period. IMHO settling for less doesnt improve on scores or makes the credit report any less acceptable to mortgage lenders or new credit.

 

At this time, i do not have any credit card & i desperately am seeking credit and given these accounts even when out of SOL is making getting new credit very very difficult.

 

What can i do to get a new credit card. I have had 2 secured credit cards for 5 months now, 2 Conn's accounts reporting one 90 day same as cash $2000 tradeline that is paid off but these chargeoffs &/or collections are stopping me from getting new credit card. (with any limit). The score as of june 15 2013 is 601(Exp) 609 (EQX) & 607 (TU).

If a OC stops reporting to CRA's is that a good thing or bad thing; the account is charged off & still within the SOL; but not reporting.

Link to post
Share on other sites

@energizer

 

Just like the OP i have the same question. I have so many dual (The OC & the CA) reporting for atleast two accounts that are now past SOL & do show up on my credit report. They all will have their 7 years in June 2015 thru Nov 2015;

I believe the objective here is to remove the tradeline not exactly have them (CA or JDB) shut up and let it just hang on there inside of our own credit reports.

So if the objective is removal of CA/JDB that is past SOL

A C &D letter should suffice or is it?

 

Did you dispute with the credit bureaus? 

 

Now onto removing the ones within the SOL which have been chargedoff; Anything less than removal of tradeline is and should be just "UN-ACCEPTABLE".settlement..period. IMHO settling for less doesnt improve on scores or makes the credit report any less acceptable to mortgage lenders or new credit.

It does if part of the agreement is to get them removed...

 

At this time, i do not have any credit card & i desperately am seeking credit and given these accounts even when out of SOL is making getting new credit very very difficult.

 

What can i do to get a new credit card. I have had 2 secured credit cards for 5 months now, 2 Conn's accounts reporting one 90 day same as cash $2000 tradeline that is paid off but these chargeoffs &/or collections are stopping me from getting new credit card. (with any limit). The score as of june 15 2013 is 601(Exp) 609 (EQX) & 607 (TU).

 

Have you tried a credit union?

 

If a OC stops reporting to CRA's is that a good thing or bad thing; the account is charged off & still within the SOL; but not reporting.

It's a good thing.  You want to have the negative removed.  

Link to post
Share on other sites

I have disputed the following with CRA's.

Date of Last Payment is indeed inaccurate. I put that to the OC via a phone call and to the CA that is listed as tradeline on my CRA. I even went as far as calling up OC and they have admitted it to be not true. (the date of last payment).

 

Unfortunately nothing has been done when i pull my report June 22, 2013. I have records of requesting investigation to CRA's, to the OC & to the CA. I am very convinced the date of last payment they show to be Feb 2011 is wrong, it should be Feb 2008. I am convinced that is what the CA is basing it on assuming its within the SOL.

 

All i have is documentation of request made to CA &/or OC/CRA;s.

 

Is there anything more i can do now? sue them? sue who?

Link to post
Share on other sites

@ Admin

 

Credit Union is not exactly consumer/member friendly when it comes to issuing credit cards? Just IMHO.

I do have USAA banking account

I found them to be extrememly friendly.  What is your experience?

Link to post
Share on other sites
Guest
This topic is now closed to further replies.