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Trying to remove 4 collections from Credit Report


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My husband and I are trying to apply for a mortgage and were told by our broker that we needed to remove the collections and disputed items on our credit reports.  We have 4 collections on our credit reports that are past the SOL, so based on my research we cannot be sued, but are still within the reporting period. 

 

1 – Asset Acceptance - $11,696

1 - Asset Acceptance - $11,023

1 - Jefferson Capital - $911

1 - The Bureaus - $4,569

 

A few months ago, I sent letters to the credit bureaus stating they were “not mine”.  They all came back as verified.  We continue to get calls from both of the Asset Acceptance (they do not leave a message, but we see their name on caller ID) and we also get letters monthly to try to collect for both of those.  We get calls from some law office not on our report.  They just ask for my husband, so I am assuming it’s for Jefferson Capital because that is the only other collection account he has.  Feb 2014 was the last letter we received from Jefferson Capital trying to collect.  Last contact from The Bureaus was a letter trying to collect about 1 year ago via some attorney's office.

 

I just sent letters to all 4 of the collections (it’s the letter I found on this site to “stop trying to collect on zombie debt”).  I know I am supposed to send letters to the Credit Bureaus at the same time to dispute, but what approach do I take since the debt is past the SOL?  Is there a particular “reason” that would be the strongest option to state in my letter to get the collection removed?  What about debt validation?  Another article said to dispute with the original creditor?  What should I do?  Thanks for any advice!!

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If it was me, I would bite the bullet and just wait out the 7 to 7.5 years for them to fall of my CR. That is way to much debt to try and resolve and with a JDB at that. What's going to happen is they are going to find out that you want to get a mortgage and they WILL NOT budge. They will want the full amount and even then you will get screwed, it never works the way you want it to. Besides, most of it will just end up staying on your CR until it falls off. You will also reset the SOL if you pay them a dime and that will mean you can get sued again. You have over $28,000.00 in debt listed. Better to wait and save.

 

I hate to say it again, but your better off to wait it out and just save your money during that time for a better down payment. I would also concentrate on building up my good credit in the mean time too.  Good luck.

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TomnTex,  Thanks for your response, but I at least want to try to get them removed.  I've read posts from other people getting collections removed, so what harm is there in trying?  I definitely will not pay them or speak with them, but I would like to see if I can get them removed now.  Our credit is good in all other aspects except for these 4 collections.  The articles I've read on this site said to send a letter to the Credit Bureaus and list the reason why they should be deleted.  I will try that unless someone else can offer some other advice.

 

Thanks so much!!

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This is not zombie debt.  Zombie debt is debt that is not only beyond the SOL for filing a lawsuit but also for reporting to the credit bureaus.  This is merely debt you owe that now has an affirmative defense of an expired SOL if they did try to sue you.

 

Disputing with the original creditor will not work because they have sold the debt to Asset/Jefferson/The Bureaus.  These are not collection agencies they are junk debt buyers.  You are forced to deal with them.

 

Is there a particular “reason” that would be the strongest option to state in my letter to get the collection removed?  What about debt validation?  Another article said to dispute with the original creditor?  The major problem is you have no valid or legal reason to have it removed. 

 

 We get it that you WANT/NEED it removed but that is not the leverage that will work to simply get that much debt removed from the CRs.  People who have got debts removed generally are really close to the end of the reporting period or find a legal loop hole such as major violations that force the JDB to back down.  Another reason is the debts are small.  Other than Jefferson yours are not small amounts owed.

 

Debt validation merely means they have to provide you with the name/address of the original creditor and the amount they claim you owe.  That is IT. The threshold for them to be in compliance with the FCDPA for validation is so low you can trip over it.

 

The articles I've read on this site said to send a letter to the Credit Bureaus and list the reason why they should be deleted.  I will try that unless someone else can offer some other advice.

 

So what reason(s) do you believe this should be deleted?  That is A LOT of debt and the reality is you have no leverage to force them to remove the trade lines.  The only advice I can offer is the same:  wait for it to drop off.  

 

I definitely will not pay them or speak with them, but I would like to see if I can get them removed now. 

 

Short of paying them with an agreement to delete the trade lines these are not going to budge.  The major problem you have is that these JDBs subscribe to special "lists" from the reporting bureaus.  They are notified when someone who owes them money apps for new credit and very specifically a car loan or a mortgage.  They most certainly already know you want a mortgage and now they have all the leverage because they know you have to have it gone to get approved.  Unless you pay up you are going to be living with this until the end of the reporting period no matter what letters you write.

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Thanks Clydesmom for so much information!

 

I thought for the zombie debt, it not only has to be SOL , but also that they are still reporting it on the Credit Report AND they are still trying to collect via phone calls and monthly letters to our house offering us discounts to pay.  Since the SOL has passed, isn't it unlawful for them to still try to collect via phone calls and letters?

 

Also on my Credit Report, it shows the "Present Status" as "Collection", so doesn't that mean a Collection Agency?

 

Lastly, you mentioned if I found a "legal loophole such as major violations to make the JDB back down".  Isn't that what the letters to the Credit Bureaus are for when I dispute things like "not mine", "never late", "wrong date", etc?

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@Sunflower1999

 

In most cases, it's not unlawful for a collection agency to attempt to collect a debt that's outside the SOL.  But they cannot threaten to sue you.  If they do, it's a violation of the FDCPA.

 

There are different reasons for disputes with the CRAs (credit reporting agencies).  You can dispute individual information on your CR such as the amount being reported or the date of first delinquency.  Give that a try.  If the information is verified, then you can send a dispute to the furnishers, but that dispute must be specific by stating exactly what you're disputing.

Some furnishers will delete because they don't want to fool with it, while others will still verify.  Just note that they don't have to send you any documentation to prove that they're reporting correctly.

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I thought for the zombie debt, it not only has to be SOL , but also that they are still reporting it on the Credit Report AND they are still trying to collect via phone calls and monthly letters to our house offering us discounts to pay.  Since the SOL has passed, isn't it unlawful for them to still try to collect via phone calls and letters?

 

No.  They can collect until the end of time or until you send a cease and desist all contact letter.  As long as the debt is outstanding they can collect on it.  What they cannot do is threaten any action they can't take under the law like a lawsuit, arrest, jail etc.

 

Also on my Credit Report, it shows the "Present Status" as "Collection", so doesn't that mean a Collection Agency?

 

No, it means a debt you stopped paying on that is in a collections status and is not current and being paid as agreed.  Even JDBs use collection agencies to try and collect on their money.  Asset and Jefferson are most certainly junk debt buyers.

 

Lastly, you mentioned if I found a "legal loophole such as major violations to make the JDB back down".  Isn't that what the letters to the Credit Bureaus are for when I dispute things like "not mine", "never late", "wrong date", etc?

 

The problem you have is it IS your debt(s).  You not only were late you defaulted.  You have not indicated they have illegally aged the debt or are reporting inaccurately.  Those disputes work when they are true.  By now SO many consumers have disputed saying "not mine" when it is that this holds no water outside of ID theft.

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