Yarcos

Credit repair? I don't get it...

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Greetings

 


This is a story.

In 2009 I got sick and end up in hospital. I had an insurance but still had to pay my part.
I had very good CR (753 scores) and huge credit limit (not used) on CC. I used cc to pay off
my medical bills. After all I couldn't afford cc payments and bills for living together.
Atorney general of Texas told me, if I cant pay my debt then I don't have to and creditors
can do nothing to me except go to collection. So be it...

After few years my situation change completly. I recovered from sickness, got new, better job,
my salary rise over 100% and my financial situation is much better today than in past. Also,
I found this helpful forum and lurkin on it for a while getting some practical information.

But...

I read on forum horror stories how collectors were trying collect debt. For last 3 years
(I stop paying at 5/2010) no one call me to attempt debt. In fact, I got few letters but send
them back as undeliverable or just put into trash. Few days ago I pulled my CR from all of 3
bureaus and there is none of sign of collection. I mean orginal creditors report unpaid debt
but I don't see any collecting agency. And I got letters from many different collectors.

Now, questions;

Every account includes instalment which is not paid has a charge off, but still shows balance.
Is it right?
In Texas SOL is 4 years, so the closest date of SOL expiration is 5/2014. But I read on forum
that banks usualy keep records no longer than 24 months. Can I try removed TL from record now
or I have to wait until 2014?
If there is no CA on my record, does it mean banks still keep information on my debt? - if yes,
then who the hell was trying to collect the debt?
I have been told, that all information be kept on my record for 7 years even if SOL is
expired. Is that true?



I apologize for that many question but lecture forum made me a little confused. Also, english
is not my native language and I can't understand everything.
I would like to rebuild my credit, since my collapse I have only car loan (never late) but it
doesn't boost scores much.


I appretiate any help, criticism, suggestions.


Best regards.

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How many debts do you have and what are the rough amounts for each one?

When you look at your reports there is a section for "inquiries". Do the names of any of the banks or debt collectors show up there since you stopped paying on your debts?

My belief is that about 65% of the horror stories are exaggerated. Either people panic and blow things out of proportion or just flat out say they are worse than they really are for dramatic effect or whatever. About 25% of the time people make things worse by their actions (sending the wrong letter, saying the wrong thing, etc). The remaining 10% are genuine and unprovoked assaults.

This is my second tour of duty in credit repair and in both cases, my experience has been very similar to yours. Most of the creditors and debt collectors just left me alone if I ignored them. Now that SOL is a factor the contacts have been more assertive, but nothing even close to what I would consider a horror story. And I've been sued 3 times so far.

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How many debts do you have and what are the rough amounts for each one?

When you look at your reports there is a section for "inquiries". Do the names of any of the banks or debt collectors show up there since you stopped paying on your debts?

6 accounts CC and instalments, all are charged off. Total amount is 18000$ and the higest balance is 3900$.

Inquires section show that banks still check my record and there are few other "agencies" but only two of them claim that their purpose is collection.

I read its possible to negotiate debt and removal of charge off from CR by pay some amount, so yesterday I called one of bank but the lady couldn't tell me anything. She said she has no acces to the account.

Is a chance that bank doesn't havy data anymore? If yes, can I ask CR for investigation and remove CO?

 

Actually I'm ready to work with them and I can pay some amount to clean this mess, but I'm not sure how to  do it.

I appretiate any help or sugestions

 

Best regards

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I read its possible to negotiate debt and removal of charge off from CR by pay some amount, so yesterday I called one of bank but the lady couldn't tell me anything. She said she has no access to the account.

Is a chance that bank doesn't have data anymore? If yes, can I ask CR for investigation and remove CO?

 

Actually I'm ready to work with them and I can pay some amount to clean this mess, but I'm not sure how to  do it.

I appreciate any help or suggestions

The first thing you should do is dispute all these accounts with the credit bureaus and see what comes off.  This is always a good first step.   If you called and they said they had no information, it could merely mean that the account was turned over to a collections firm, but the collections firm hasn't contacted you.

 

It's possible you can negotiate with the original creditors to take a lesser amount on the debt.   If you do settle with the OC, the best you can expect to get as far as a notation for this account on your credit report is "settled".  However, that is better than an open charge off with a balance.  

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Thank you for your reply.

 

 

I went to bank and they call to main (?) office and gave me an offer; 40% of amount I owe in 2 rates and account be settled with 0 balance. Account wasn't in collection and bank still maintain it. I'm ready to work with them.

 

Also I went another bank to try settle the another CC debt. But they din't want work. 100% of debt or no deal. But in this case, I have 3 accounts with them but they told me, they have only one. So, I guess I will try dispute with CRA

 

I'm not sure how to start dispute. Is it a request of inaccurate information?

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Ha! Thats what I was thinking. Especialy I have one wrong adres on my CR.

 

Can I use (with some modification) this letter:

 

http://www.creditinfocenter.com/forms/sampleletter1.shtml

 

And add list of all accounts I want dispute?

 

And one more question;

I read here that creditors should inform us about posting negative listing on our CR and if they don't do this it is violation - am I understand it correctly?

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..

 

Big sister is correct - by disputing your credit report first, this is going to take 30 to 60 days to get a response.  During this time you can be negotiating your debts.  Then when your get your revised report - the accounts you settled, you a send settlement letters with a 2nd request to scrub your report.  Doing it this way over all will take less time.

 

Again agree with our Big Sister - It is important to tell them when you settle, you want it reported "settled as agreed".  So it is your best interest for your future.  Not saying anything, it's going to show "settled for less".  How it is worded on your credit  report will have an impact of fast your report heals, plus it's going to be listed for the next seven years before it falls off your report. 

 

Answering your questions in your first post;

 

Even though an account shows a zero balance - most likely they wrote of the debt and sold it to a collection agency. 

 

You are correct on the statue of limitations in Texas.  source http://www.statutes.legis.state.tx.us/Docs/CP/htm/CP.16.htm#16.004  No legal action to collect on a debt after four years in court.  However a collection company can try to make you life impossible to the point of changing your phone and contact information. 

 

I some what agree horror stories are exaggerated.  I remember one case a collection company sent embarrassing mail   Every letter one digit off on the address so neighbors got the mail.  Because this persons name listed neighbors hand delivered bad debt notice cards to him after they found out he owed money.  That is a sneaky way of doing things, but when you owe many you are responsible to pay.

 

Trying to remove an actual account (TL) is unlikely, because it was reported  by that one creditor you had an account with them.  If they reported information that is not correct, this is the basis of your dispute.   One thing to your advantage - the credit agency's have 30 days to verify a dispute after which they cannot, the negative information falls off.  If the negative information is verify after 30 days, the following month it will reappear.

 

Lastly - most bad information after 7 years does fall off your credit.  However I have personally working on reports where a collection account is about to expire, Then a collection company opens it up reporting activity to the credit bureaus.  Then the accordance stays on the report for another seven years.

 

Good Luck

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2ndTime Around

 

Thank you very much for your response. Much aprettiate.

 

Let me ask few more questions:

 

 

Big sister is correct - by disputing your credit report first, this is going to take 30 to 60 days to get a response. During this time you can be negotiating your debts. Then when your get your revised report - the accounts you settled, you a send settlement letters with a 2nd request to scrub your report. Doing it this way over all will take less time.

 

 

So, I understand,  I just have to tell CRA that negative accounts they have are not my and ask them for correction?

I'm sorry for stupid question, but as a foreinger I just... Don't know... How I can do that...?

 

The Bank I wast talking still has my account in their database and they did not sell it to CA. So, in this case I think I have to settle with them. But don't understand, what you meant to "send settlement letters with a 2nd request to scrub your report"

Send to whom? Bank? Or CRA?

 

It is important to tell them when you settle, you want it reported "settled as agreed". So it is your best interest for your future. Not saying anything, it's going to show "settled for less". How it is worded on your credit report will have an impact of fast your report heals, plus it's going to be listed for the next seven years before it falls off your report.

 

What if I ask for "settled as agreed" and bank still report "settled for less"? Can I write complaint to CRA and ask for correction?

I asked lady I was talking if she can remove CO but she said its impossible. She said they report account settled and 0 balance.

Listed for 7 years is from date of settlement? Accounts are reported as negative from may/june 2010, so now its 3,5 year.

 

 

Yea, I know I'm not smart. If I were I wouldn't be here... :unsure:

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@2ndTimeAround

 

Again agree with our Big Sister - It is important to tell them when you settle, you want it reported "settled as agreed".

That's not a listing anyone will give you nor is it any better than "settled for less than owed".  If you see settled, it's a negative mark.  

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My dispute just came back. For now from Equifax and experian so just transunion left. But I do not expect its gonna be different than two others.

It came back as verified and CRAs stated if I have a problem with verification I can contact OC. Nice, huh?

 

Honestly I didn't expect other answer than I got and mentaly I prepared to send them 623 Dispute Method but... Not so fast amigo.

 

To make it even worse I just started got letters from collectors stated they purchased accounts I disputed. And if I'm not going pay them, they are reporting accounts to CRA. Great!

 

Looks like I will have more past due accounts on my record.

 

 

So, what now? Any suggestions?

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My dispute just came back. For now from Equifax and experian so just transunion left. But I do not expect its gonna be different than two others.

It came back as verified and CRAs stated if I have a problem with verification I can contact OC. Nice, huh?

 

Honestly I didn't expect other answer than I got and mentaly I prepared to send them 623 Dispute Method but... Not so fast amigo.

 

To make it even worse I just started got letters from collectors stated they purchased accounts I disputed. And if I'm not going pay them, they are reporting accounts to CRA. Great!

 

Looks like I will have more past due accounts on my record.

 

 

So, what now? Any suggestions?

Have you sent any DV letters out?  I would definitely do that.  And start working on your 623 letters.  

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Have you sent any DV letters out?  I would definitely do that.  And start working on your 623 letters.  

 

Not yet. Im planning send this letter to collectors (modified):

 

http://www.creditinfocenter.com/forms/sampleletter9.shtml

 

But I have strange feelings they will validate it.

BTW, I have no idea how DV looks.

 

 

 

Edit

 

I just look closer to both report I got (still don't have from TransUnion) and what I see?

 

One account:

Charge off amount: 543$ (Experian)  601$ (Equifax) - diffrence 58$ beetwen agencies?

 

Other account:

past due: 2836$ (Experian)  2777$ (Equifax)

 

Nice, huh?

 

How can I use it against TL?

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Finally I got answer for my 623 dispute letter (or whatever we call it)

 

In 623 letter I asked them to send me a copy of statements, date and place in which someone opened an account from which this alleged debt emerged.

 

This is the long answer short:

 

We don't have information you requested. We don't have your account.

We sold it to collection agency. Go after them.

 

Sincerely,

Leave us alone

 

 

I sent total 4 certified letter for each account. But got answer only for one.

So, what is next step?  Wait a little longer and maybe I get answer for the rest 3 accounts? - I sent letters in December '13

Send DV to CA or wait a while?

 

Or contact an attorney? (I have Legal Shield Insurance - means; 24/7 accses to a lawyer in any case)

 

Any suggestions?

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Hi, I am new to this forum and would like to give my 2 cents in this thread. I am currently a loan officer in Georgia but originate in 19 other states. I've been doing this for over 15 years. "Credit Repair" has changed dramatically over the last decade. 10 years ago anyone could send dispute letters to the credit bureaus and it didn't matter as long as they put a "dispute" status on the account, it would not being calculated in the score. This caused a false inflation in the score and many people were able to get mortgages. Now a days, mortgage underwriting will not accept anyone's credit with a "dispute" status on their report. In addition, if you're sending dispute letters to the three credit reporting agencies only then you're most likely wasting your time. Even if they do remove the item from your report it's most likely going to be temporary. We need to remember how the credit bureaus get paid -  creditors and collection agencies by reporting the negative information. 

 

Now, I have my clients go straight to the creditor or collection agency to dispute certain items. Recently, I've noticed responses from creditors and collection agency that will detour the common person from continuing their pursuit - "According to the Fair Debt Collection Practices Act we do not have to support our claim. We've checked our records and this debt has been validated. If you disagree then send us anything to support your claim". Most people would assume the debt has been validated. Yes, according to the Fair Debt Collection Practices Act they do not need to support their claim however according to the Fair Credit Reporting Act they do! Even worse, I'm seeing collection agencies blatently violating Federal and State Laws without a care. 

 

So, I instruct my clients with credit troubles to challenge the items directly with the creditors first. If they get nowhere I use a law firm that specializes in consumer credit that will leverage Federal and State laws and this includes filing lawsuits to enforce sanctions for violators. - White, Jacobs & Associates! Look them up and give them a call if you find yourself stuck. I hope this helps

 

Jason

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