lg72

Paid VA Education Collection Questions NY

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Hello all, first post here at creditinfocenter. So I am getting really serious about credit repair and I want to attack the worst item on my reports, my only collection account. 

 

Okay so I was in school under CH33 GI bill and dropped most of my classes late one semester because of personal issues. This resulted in an  "over-payment of benefits" to my Community College. The VA alerted me of the new debt of $563 and told me to pay it. I asked for a payment plan of $20/month and they told me that they could not accept less than $50/month. I did my best paid the $50 twice(May/June 2011) and then stopped because I did not have the money. I PIF the debt the following January(2012) as soon as I had the money but the damage had been done I now have a collection on my report.

 

During the same time period late 11/ early 12 I had several CC accounts go 30 days and one go 60 days, however those aren't effecting me as much as the collection.

 

I live in NY, so the worst case is I wait till May of 16 and get it deleted then with the NY 5 year rule. (DOFD may/11)

 

I have been advised at another forum to write a GW letter to the VA and hope for the best. Reading in the same forum I have found one out of a half dozen actually get the VA to do the GW.

 

What is the most effective course of action here? Does anybody know what direction I should head?

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Really, a good will letter is about all you can do, but it's unlikely they will do anything.  You should know how things are with the VA though, they have a set of guidelines that they must go by for everyone unless they've made a CUE.  If they make an exception for one, they would have to for all and they really don't have time to review all of the tons of request that would start coming in.  Thank you for your service!

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Thank you very much for your input. You are confirming my fears. Is it worth while to go after 30 or 60 day lates when I have an immovable collection?

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The VA is usually quite slow in responding.  Most likely, it will be a year before you get a response from them with your goodwill letter.   By then, it is only a few more months.  Personally I wouldn't waste my time.  Here is why.

 

Yes, you have a collection account showing on your CR's.  I'm not familiar with NY, thus must assume, by your comment, they only allow negative info to report for 5 years.  The federal is 7 years.

 

What to understand that this account "seasons" over time.  By this, it will not affect your score as much as it did in the beginning.  The same applies to the late payments.    The only thing you want to do is to assure it shows a zero balance, with the notation "paid".  If it doesn't say that, let us know, and will show you how to get that fixed.

 

If you purchase a car, the dealer takes your score, and, uses it to determine which lender will accept your contract.  All dealers have a list of lenders, with guidelines.  By this, some will accept below 630, at 11%, another will accept 630-660 at 8&, etc.  If purchasing a home, All a mortgage lender requires is that a collection account shows a zero and paid.

 

You can try a goodwill letter with the late payments.  Some have had good luck over the years.  Some would challenge them, by matching their payments, with the due date.  Goal is to find any error made.  Yes, it does happen..  Use your check register, note rotation dates of statements, and go from there.

 

I've dealt with the VA for 44+ years, had to fight them for 12 years, on one item alone.  I finally beat them in 2010.  I've been 100% Service Connected since 2001, having started out at 50% in 1970.  I do what I can now for vets when filing claims.  Mostly, it is with other Vietnam vets, who walked away from benefits back then, due to the BS that went on.  I doubt if it would work but, you could go to your nearest VA facility, look for the vet reps from the different organizations, and see what they say  If a regional office, they will be found in smaller offices in the hallway.  If a VA Hospital, they are mostly found near the main lobby, or just off, in the hallways.  Either way, an info booth can direct you.  Just don't get your hopes up.

 

And, lastly, WELCOME HOME, SOLDIER!!!!!

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