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Do I Approach the CA or the OC To Try for a Pay-for-Delete?


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Hi everyone, and happy Wednesday to you all.

 

Well, after burying my head in the sand for so long, I'm finally taking steps to try to address some old charged-off accounts currently in collection (none are past SOL, btw).

 

Since it's been several months since the CAs for these first sent me correspondence, so I've obviously missed the window for DV (live and learn).  All of the negative tradelines on my CR are OC entries, which I'm assuming means that the CAs are either assigned or else haven't reported.  My plan for addressing things is to try to arrange a pay-for-delete on these accounts or, barring that, at least get an NDA agreement so that I can later dispute the tradelines with the Big Three and have them removed (since the NDA will prevent the OCs or CAs from verifying the accounts with the CRAs).  

 

So my question is, who do I approach regarding pay-for-delete or settle with NDA?  Since the accounts are listed as charged off by the OC, I'm assuming that they won't want to deal with me.  On the flip side, the CAs may want to work with me, but do they have any ability to have tradelines that were listed by the OC removed?  It doesn't seem like they would.

 

Any advice is greatly appreciated.  I'd like to get the process moving ASAP (like today), because I'm currently being sued on another account that I waited on too long because I didn't know what to do.  Lesson learned!

 

Thank you all so very much!

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@ - NDA agreement?  ?

 

If the collections aren't reporting, are you sure you can't just approach the OC?  A long shot, but worth trying.  

 

However, the collection agencies might be willing to do a pay for delete without much fight.  How much cash can you offer them.  You've read the strategy on this, right?

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Hi, Admin Big Sis!

 

Thanks again for your tireless assistance!  The CAs have actually sent me settlement offers before (one is as low as 30% of the supposed original balance, while most are probably in the 65% range).  For those that aren't that great a deal, I planned on offering less, but am willing to pay closer to what they're asking for if they're willing to do a pay-for-delete in return (I wouldn't offer that information right away, of course).  It would be great if I could arrange this with all of them, but what I'm not clear on is if the CA is actually capable of deleting the tradeline after I pay them (which of course I won't do unless everything is in writing).  My logic here is that if the tradeline listing on my credit report was placed there by the OC, the CRAs wouldn't let anyone but the OC remove it.  True?

 

Thanks again!  You folks are helping me out more than you could possibly know!

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  My logic here is that if the tradeline listing on my credit report was placed there by the OC, the CRAs wouldn't let anyone but the OC remove it.  True?

@ - The OCs won't remove the tradeline, but they have to update their listings to "settled" or "Balance $0".  

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  • 2 weeks later...

@admin

The OCs won't remove the tradeline, but they have to update their listings to "settled" or "Balance $0"

 

Hey, sorry to bother you again, but I had a couple more questions, if you wouldn't mind and have time.  When you mention that after a settlement with the CA, the OC has to update their original TL on my credit report to "settled" or "Balance $0," does this mean that this status will replace the "charged off" listing or that it will just be an addition to it?  Is there any legal precedent for this that I could reference if the CA refuses?  And just how much better is a listing of "settled, balance $0," than "charged-off" (account was charged-off almost 3 years ago, if that helps any). 

 

Also, has anyone ever heard of the CA being able to exert any influence on the OC for removal of items in the TL that was placed by the OC (such as "30, 60, 90 days late") in order to get a settlement from the Consumer?  I'd like to use this as a bargaining chip, but realize that the OC and CA probably don't have any working relationship after the debt is sold.  I know it's a long shot, but its going to be tough to part with so many thousand of dollars to settle these accounts just to avoid being sued, with no real improvement to my credit rating when all is said and done.  I'm trying to send these settlement offers / contracts out this weekend, but am just realizing that I'm probably not going to get much for the money.

 

Lastly, if I settle out with the CA and they sign all of the paperwork and get their payment, can the OC just sell the original account to another JDB after I've paid the first one?  If they do, what it my legal recourse?

 

Sigh...  thanks again.

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@

Hey, sorry to bother you again, but I had a couple more questions, if you wouldn't mind and have time.  When you mention that after a settlement with the CA, the OC has to update their original TL on my credit report to "settled" or "Balance $0," does this mean that this status will replace the "charged off" listing or that it will just be an addition to it?  Is there any legal precedent for this that I could reference if the CA refuses?  And just how much better is a listing of "settled, balance $0," than "charged-off" (account was charged-off almost 3 years ago, if that helps any). 

 

It may replace the charged off notation, but could update to  "paid was chargeoff".  Typically, though, they say "debt settled for less than owed."  They might give the whole payment history, which could also be negative.  

 

However, just having a "settled" and no payment history no mention of chargeoff is negative but less negative than a charge off.  How much better?  That depends on your overall credit history.  

 

Also, has anyone ever heard of the CA being able to exert any influence on the OC for removal of items in the TL that was placed by the OC (such as "30, 60, 90 days late") in order to get a settlement from the Consumer?

 

No.  Typically, they are not talking to each other at this point unless the debt is "assigned". . I don't know of any cases where a CA "puts pressure" on an OC. 

 

Lastly, if I settle out with the CA and they sign all of the paperwork and get their payment, can the OC just sell the original account to another JDB after I've paid the first one?  If they do, what it my legal recourse?

 

They can, but if you have an agreement that says "settlement considered payment in full" with the CA, you should be able to use it in court should that arise.  

@

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Thanks, Admin!

 

Just have a few final questions, if you wouldn't mind?

 

 


No.  Typically, they are not talking to each other at this point unless the debt is "assigned". . I don't know of any cases where a CA "puts pressure" on an OC. 

 

 

Any idea how I can find out if the debt is "assigned" without actually calling them?

 

 

They can, but if you have an agreement that says "settlement considered payment in full" with the CA, you should be able to use it in court should that arise.  

 

Any idea if I would be able to recover filing fees if I win in such an instance?  I just found out that the Court wants $225.00 just to file an Answer to any suit brought against me.  Uggh!

 

 

Thanks so much for all of your help.  Have a great day!

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No.  Typically, they are not talking to each other at this point unless the debt is "assigned". . I don't know of any cases where a CA "puts pressure" on an OC. 

 

 

Any idea how I can find out if the debt is "assigned" without actually calling them?

@ - try Googling the company to see what kind of business they do.  That should give you a good idea.  Also, if the OC is updating every month, that is also a clue that the account is "assigned".  

 

Any idea if I would be able to recover filing fees if I win in such an instance?  I just found out that the Court wants $225.00 just to file an Answer to any suit brought against me.  Uggh!

If they violate the contract, they would be liable.  You would need to prove they breached the contract.  If you win on FCRA violations you can recover attorney's fees.  

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