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Best way to handle these CA's?


dthack0625
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There are two CA's on my report that I owe under $1000 combined on, One is from about 4 years ago and the other about 2 years old. Will paying these off in full be beneficial to my credit score if it stays on my credit? In this situation (inside SOL) do CA's occasionally accept PFD? How would you attack these? DV first?

 

Thanks for any help

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1. OC was Entergy- sent to CA- $235 DOFD- around Aug 2012

 

2. OC was DIRECTV- sent to CA- $750 DOFD- I’m unsure at the moment, I don't have my papers with me but it was early 2010 I believe.

 

I have the funds to pay these off but my main priority right now is doing whatever is best for my credit. I'm hoping to get a mortgage by this summer. Whats the best direction to take on this?

 

 

I just looked up the SOL for Texas- 4 years. The DIRECTV may be over, I have to check my records.

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@dthack0625

 

Personally, I would not pay a debt that's outside the SOL.  The older a debt becomes, the less effect it has on your credit score.  A negative entry falls off your CR 7 after the date of first delinquency.

 

But whether or not you pay them is up to you and, of course, would depend upon your reasons. 

 

Are you sure (especially in regard to the older debt) that the OC still owns the debts?   If the OCs' entries show "sold" or "transferred", the OCs no longer own them.  You can also tell if an OC still owns an account by the balance and the date they last updated.  If the OC has sold the debt, a -0- balance would be reported, and the creditor would no longer be updating their entry.

 

If the debt is sold, then a junk debt buyer owns the account.  Paying a JDB will have no effect on the OC's entry.

 

Try to determine if the accounts have been sold or not.  Then go from there.

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I'm confused. Isn't that exactly why you send it? To make them validate the debt... I'm new to this but I've have been reading on this site and another for hours on end the last few days. Am I misinterpreting it? My understanding is if they can't prove/don't have documents from OC that they must remove from my credit report.

 

 

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

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I'm confused. Isn't that exactly why you send it? To make them validate the debt... I'm new to this but I've have been reading on this site and another for hours on end the last few days.

 

Am I misinterpreting it? My understanding is if they can't prove/don't have documents from OC that they must remove from my credit report.

 

Yes, you are misinterpreting it.  MANY consumers do.  The wordy DV letters you see demanding everything short of DNA proving that a consumer owes a debt do nothing except get a laugh at the creditor when they receive it.

 

The standard for validation is SO low you can trip over it.  When a consumer sends a DV letter to a creditor ALL that has to be provided in response is the name of the original creditor, the amount owed, and the date of the account.  That is IT.  They are not required to meet the same burden of proof that would be necessary in a court of law when suing to validate with the consumer.  They are not required to send documentation proving it either.  

 

NOTHING in the FCRA requires they provide you with documentation to report a valid debt.  It only requires that they report accurately.  The FCDPA requires that collection activity cease while a debt is disputed but once validated (again which does not have to include actual paperwork) they can continue collection and courts have not issued a clear ruling that reporting on a CR is collection activity.  (though many have said it is not)

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Thanks for the reply. From what I've been reading on the forums it seems a lot of people are not only misinterpreting it but also feeding what’s been misinterpreted to other members as a fact. I pulled this off of the Federal Trade Commission website.

 

“You have the right to dispute incomplete or inaccurate information. If you identify

information in your file that is incomplete or inaccurate, and report it to the consumer reporting

agency, the agency must investigate”

 

"Consumer reporting agencies must correct or delete inaccurate, incomplete, or

unverifiable information. Inaccurate, incomplete or unverifiable information must be

removed or corrected, usually within 30 days. However, a consumer reporting agency may

continue to report information it has verified as accurate."

 

The way this reads tells me that if I dispute and want verified the information a collection agency is reporting on my credit than they would have to "verify" with the CRA's that all information they reported is true. Maybe they can maybe they can't, that's not what I'm asking. But it clearly reads they must verify.

So what you are saying is not that they don't have to verify but their verification is a joke that is accepted by the CRA's?

 

With all of this being said I'm reading that some CA's may not keep good records or for other reasons just may not get back with the CRA's within the 30 day window and it doesn't hurt to send DV letters anyway. What are your thoughts on this?

 

I'm not trying to be difficult, just trying to gain a better understanding. I've just recently gotten organized and I'm planning on attacking my credit soon. I want to make sure I'm coming at it from the right angle.

Thanks

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The standard for validation is SO low you can trip over it.  When a consumer sends a DV letter to a creditor ALL that has to be provided in response is the name of the original creditor, the amount owed, and the date of the account.  That is IT.  

 

"If the CRA cannot verify negative information, it must be deleted from your file."

 

Does this not mean that they would have verify all "lates" also?

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@dthack0625

 

“You have the right to dispute incomplete or inaccurate information. If you identify

information in your file that is incomplete or inaccurate, and report it to the consumer reporting

agency, the agency must investigate”

 

 

 

The above is true.  But it's based upon a dispute with the entry on your CR.  That's not a debt validation letter.

 

Verifying a debt per the FDCPA and the FCRA are 2 different things.  If you send timely DV within 30 days after receiving the very first collection letter, a debt collector cannot try to collect again until they validate the debt.  If they're reporting on your CR, they must report the account as disputed.  BUT, they do not have to verify the account with the credit reporting agencies.

 

If you dispute information on your credit report, you want to first dispute with the credit reporting agencies.  The reason is because if anything is being reported incorrectly but the furnisher verifies the information as correct, you would then have a private right of action under the FCRA to sue the furnisher.

 

If you dispute information on your CR directly with the creditor before doing so with the CRAs, you lose that private right of action.

 

Is the information on your CR being reported accurately?

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Is the information on your CR being reported accurately?

 

 

 

Unfortunately it is. I'm trying to get a mortgage this spring and I want to do anything within my power (legally) to raise my FICO score, including full payment of debt. I feel like I read on one post that I have many options to try to get this removed and the very next post people will say there's little I can do.

 

My cc's are all paid down to under 10% and I'm making my payments on time. I'm starting to believe I've done all I can for now.

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@dthack0625

 

You have options.  Under the FCRA, if the account is being reported inaccurately, they have to correct it or remove it.  If you dispute with the CRAs, but the furnisher doesn't respond to the CRAs, the CRAs have to delete the entry.

 

You could pay debts.  But there's no guarantee that the furnishers would remove their entries.  Some furnishers will agree to a PFD but not all will do so.

 

Also, even if the JDBs agree to remove their entries, that would have no effect upon the original creditors' entries.  Are the OCs reporting the accounts?

 

If the OCs are reporting and the JDBs won't agree to remove their entries, a paid debt would look better to a lender than unpaid debt. 

 

You might want to speak to some mortgage lenders and ask them about unpaid debts on your CR.  What do they require?   

 

Would a negative account that's been paid prevent you from getting a mortgage?   OR would the lender be satisfied with the fact that the debt has been paid?

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Tell me if I am wrong but I read one of your accounts is over the SOL?  If so, I would dispute this to the CRA's as the account is past the SOL and should be removed from your CR.  @BV80 - is this right?

 

@lionhunter

 

Unfortunately, that's not the case.  The SOL for collecting a debt and the SOL for reporting it are 2 different things. 

 

Even if a debt is outside the SOL for collection, the FCRA provides that a negative entry can remain on your account for 7 years after the date of first delinquency.

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The OC's are not on my Transunion report, not sure about the others (Still waiting to get them) I guess I'll dispute it with the CRA's. If that doesn't help I'll try PFD with the JDC's. If that doesn’t work then I'll just pay the debts.

I believe I'll be able to get a mortgage. My Transunion FICO was 606 last week. I've since paid down on my cc's and move from 60% utilization to 10%, hopefully that will bring it up some. All I need is a 620 at this point for the mortgage. I can always refinance in the next year or two when my FICO is higher. I'll get there. I'm driven.

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@dthack0625 - a TransUnion score is different than a true FICO score.  TransUnion uses VantageScore.  You can get your FICO score from myFICO.com.  The two are based on different scales and mortgage companies use FICO.   See this article = http://www.creditinfocenter.com/creditreports/scoring/FairIsaacReaction2VantageScore.shtml

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Sorry, That score did come from myFICO.com , I got confused. I did only recieve my Transunion report to this point but i forgot that wasn't where I got my score, My "FAKO" was 650 on freecreditreport.com and after reading some discussions on another forum a couple of days ago I went to myFICO.com and was a little disapointed...lol

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